Bank Guarantee Agreement Template for Austria

The Bank Guarantee Agreement is a crucial financial instrument in Austrian business transactions, providing security and risk mitigation for various commercial arrangements. This document is typically used when a party requires financial assurance for the performance of obligations, such as in construction projects, tender submissions, or international trade transactions. The agreement, governed by Austrian law, particularly the Banking Act (BWG) and Civil Code (ABGB), details the guarantee amount, validity period, trigger events for payment, and claim procedures. It includes specific provisions required by Austrian banking regulations and may need to comply with EU banking directives. The document is essential for businesses seeking to secure their commercial interests through bank-backed guarantees and is commonly used in both domestic Austrian transactions and international business dealings where Austrian law is chosen as the governing law.

1. Parties: Identification of the guarantor bank, the principal (applicant), and the beneficiary, including full legal names and addresses

2. Background: Context of the guarantee, including reference to the underlying transaction or obligation being guaranteed

3. Definitions: Key terms used throughout the agreement, including technical banking terms and specific guarantee-related terminology

4. Guarantee Amount and Currency: Specific amount of the guarantee and the currency in which it is issued

5. Scope of Guarantee: Detailed description of the obligations covered by the guarantee and any limitations

6. Duration and Validity: Term of the guarantee, including effective date and expiry conditions

7. Conditions for Payment: Specific circumstances and documentation required for calling on the guarantee

8. Payment Procedure: Process and timeframe for payment upon valid demand

9. Fees and Charges: Bank's fees, commissions, and charges for issuing and maintaining the guarantee

10. Representations and Warranties: Standard declarations by the principal regarding their capacity and authority

11. Principal's Obligations: Duties of the principal, including reimbursement obligations and provision of counter-security

12. Assignment and Transfer: Provisions regarding the transferability of the guarantee

13. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes

14. Notices: Communication procedures between parties

15. Miscellaneous: Standard boilerplate provisions including severability and entire agreement clauses