Guarantee Facility Agreement Template for Austria

The Guarantee Facility Agreement is a crucial financial instrument in Austrian business practice, typically used when companies require a framework arrangement for obtaining multiple guarantees over time. This document is essential for businesses that regularly need bank guarantees for their operations, such as construction companies requiring performance bonds or importers needing customs guarantees. The agreement, governed by Austrian law, establishes the overarching terms under which a financial institution will issue guarantees, including maximum facility limits, fees, conditions for issuance, and the applicant's counter-indemnity obligations. It must comply with Austrian banking regulations and civil law requirements, particularly the provisions of the Austrian Banking Act (BWG) regarding financial services and the Austrian Civil Code (ABGB) concerning guarantee obligations. The document serves as a master agreement, streamlining the process for obtaining individual guarantees while ensuring proper risk management and regulatory compliance.

1. Parties: Identification of the parties: typically the guarantee facility provider (bank/financial institution), the applicant/obligor, and any additional parties

2. Background: Context of the agreement, including the purpose of the guarantee facility and the underlying business relationship

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. The Facility: Details of the guarantee facility including the facility amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Utilization: Procedures and requirements for requesting individual guarantees under the facility

7. Guarantee Requirements: Forms, types, and requirements for guarantees to be issued under the facility

8. Fees and Costs: All fees, commissions, and costs associated with the facility and individual guarantees

9. Representations and Warranties: Statements of fact and assurances given by the applicant

10. Undertakings: Ongoing obligations of the applicant throughout the facility period

11. Events of Default: Circumstances constituting default and their consequences

12. Counter-Indemnity: Applicant's obligation to indemnify the guarantee provider for any payments made under guarantees

13. Payments and Calculations: Payment mechanics, currency provisions, and calculation conventions

14. Changes to Parties: Provisions regarding transfer, assignment, and delegation rights

15. Notices: Communication requirements and contact details

16. Governing Law and Jurisdiction: Choice of Austrian law and jurisdiction provisions