Revolving Bank Guarantee Template for Austria

The Revolving Bank Guarantee is a sophisticated financial instrument used in commercial transactions where ongoing security is required for repeated or continuous obligations. This document type is particularly valuable in long-term commercial relationships, such as supply contracts, construction projects, or recurring service arrangements. Under Austrian jurisdiction, it combines elements of traditional bank guarantees with an automatic reinstatement mechanism, allowing the guarantee amount to be restored after each claim, subject to specified conditions. The document must comply with Austrian banking regulations and commercial law, particularly the Banking Act (BWG) and Civil Code (ABGB). It includes detailed provisions for the revolving mechanism, claim procedures, and bank's obligations, making it suitable for businesses requiring flexible, renewable security arrangements while maintaining strict regulatory compliance.

1. Parties: Identification of the Bank (Guarantor), the Principal (party requesting the guarantee), and the Beneficiary

2. Background: Context of the guarantee, including the underlying commercial relationship between Principal and Beneficiary

3. Definitions: Key terms including 'Guarantee Amount', 'Revolving Mechanism', 'Reinstatement Conditions', 'Validity Period'

4. Guarantee Amount and Scope: Maximum guarantee amount, nature of obligations covered, and revolving mechanism details

5. Term and Validity: Duration of the guarantee, conditions for extension, and expiry provisions

6. Revolving Mechanism: Detailed explanation of how the guarantee amount reinstates, trigger events, and reinstatement conditions

7. Demand Requirements: Process and formal requirements for making a demand under the guarantee

8. Payment Terms: Timeline for payment upon demand, payment method, and currency provisions

9. Bank's Rights and Obligations: Scope of bank's obligations, examination rights, and payment conditions

10. Principal's Obligations: Counter-indemnity obligations, fee payments, and provision of information

11. Reduction and Release: Conditions for reduction of guarantee amount and release of bank's obligations

12. Governing Law and Jurisdiction: Austrian law as governing law and jurisdiction provisions