Irrevocable Letter Of Guarantee Template for Belgium

The Irrevocable Letter of Guarantee is a critical financial instrument used in commercial transactions where one party requires financial security from another. Under Belgian law, this document provides a bank's unconditional commitment to pay a specified amount to a beneficiary upon demand, typically used in large commercial contracts, international trade, construction projects, or tender submissions. The guarantee cannot be modified or cancelled without the beneficiary's consent, making it a powerful tool for risk mitigation. The document must comply with Belgian civil and commercial law, relevant EU regulations, and often incorporates international banking practices such as the ICC Uniform Rules for Demand Guarantees (URDG). It includes detailed information about the parties involved, the guaranteed amount, validity period, claim procedures, and governing law provisions specific to the Belgian jurisdiction.

1. Issuing Bank Details: Full name and address of the bank issuing the guarantee

2. Reference Number: Unique identifier for the guarantee

3. Date: Date of issuance of the guarantee

4. Beneficiary Details: Full name and address of the party receiving the guarantee

5. Principal Details: Full name and address of the party on whose behalf the guarantee is issued

6. Guarantee Amount: The maximum amount guaranteed, expressed in numbers and words

7. Underlying Transaction: Reference to the primary contract or obligation being guaranteed

8. Guarantee Scope: Clear description of the obligations covered by the guarantee

9. Payment Terms: Conditions and process for demanding payment under the guarantee

10. Irrevocability Statement: Express statement confirming the irrevocable nature of the guarantee

11. Expiry Details: Validity period and expiry conditions of the guarantee

12. Governing Law: Explicit statement that Belgian law governs the guarantee

13. Authorized Signatures: Space for bank officials' signatures and bank seal