Guarantee Facility Agreement Template for Belgium

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Key Requirements PROMPT example:

Guarantee Facility Agreement

"I need a Guarantee Facility Agreement under Belgian law for a €50 million facility between BNP Paribas Fortis as guarantor and our construction company as principal, to be used for issuing performance bonds and tender guarantees for infrastructure projects starting March 2025."

Document background
The Guarantee Facility Agreement is a crucial financial instrument used when a company needs ongoing access to bank guarantees for its business operations. This agreement, governed by Belgian law, establishes a framework under which a financial institution agrees to issue various types of guarantees (such as performance bonds, tender guarantees, or payment guarantees) up to a specified facility limit. It is particularly useful for companies engaged in regular commercial contracts requiring bank guarantees, international trade, or construction projects. The document includes comprehensive details about facility limits, issuance procedures, fees, security requirements, and the obligations of all parties involved. The agreement must comply with Belgian financial regulations, including the Belgian Civil Code and Financial Collateral Law, while also considering relevant EU directives. It's commonly used by companies operating in Belgium or engaging in cross-border transactions involving Belgian entities.
Suggested Sections

1. Parties: Identification of the guarantor, beneficiary, and any other relevant parties to the agreement

2. Background: Context of the agreement, relationship between parties, and purpose of the guarantee facility

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

4. The Guarantee Facility: Core terms of the facility including maximum amount, availability period, and purpose

5. Issue of Guarantees: Process and conditions for issuing guarantees under the facility

6. Fees and Expenses: All fees payable, including facility fees, issuance fees, and expense reimbursement

7. Payment Mechanics: Payment procedures, currency provisions, and timing of payments

8. Representations and Warranties: Standard representations and warranties from the parties

9. Information Undertakings: Obligations to provide financial and other information

10. General Undertakings: General obligations and covenants of the parties

11. Events of Default: Circumstances constituting default and consequences

12. Changes to Parties: Rules for assignment, transfer, and succession

13. Administration: Administrative provisions including notices and calculations

14. Governing Law and Enforcement: Choice of law, jurisdiction, and enforcement provisions

15. Execution: Signature blocks and execution formalities

Optional Sections

1. Security: Include when the facility is secured by collateral or other security interests

2. Counter-Indemnity: Include when there's a separate counter-indemnity obligation from a third party

3. Tax Provisions: Detailed tax provisions when cross-border elements or specific tax considerations apply

4. Multiple Currencies: Include when guarantees can be issued in multiple currencies

5. Bank Guarantee Syndication: Include for syndicated guarantee facilities with multiple guarantor banks

6. Electronic Banking Provisions: Include when electronic platforms are used for guarantee issuance or management

7. Regulatory Compliance: Specific regulatory compliance provisions for regulated entities

8. Force Majeure: Include when specific force majeure provisions are required beyond standard provisions

Suggested Schedules

1. Form of Guarantee Request: Standard form for requesting issuance of guarantees under the facility

2. Form of Guarantee: Template guarantee format to be used for issuance

3. Conditions Precedent: List of required documents and conditions to be satisfied before facility effectiveness

4. Fee Schedule: Detailed breakdown of all applicable fees and charges

5. Guarantee Facility Limits: Breakdown of facility limits by type of guarantee, currency, or beneficiary if applicable

6. Contact Details: Contact information for all parties and authorized representatives

7. Compliance Requirements: Detailed compliance requirements and procedures

8. Form of Transfer Certificate: Standard form for transferring rights under the facility if permitted

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Construction & Infrastructure

International Trade

Manufacturing

Energy & Utilities

Real Estate & Property Development

Telecommunications

Mining & Resources

Transport & Logistics

Government & Public Sector

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Trade Finance

Credit

Commercial

Project Finance

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Legal Counsel

Contract Manager

Risk Manager

Compliance Officer

Corporate Banking Manager

Trade Finance Manager

Credit Risk Officer

Commercial Director

Project Finance Manager

Senior Corporate Lawyer

Banking Relationship Manager

Financial Controller

Industries
Teams

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