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Performance Bank Guarantee
"I need a Performance Bank Guarantee under Belgian law for a €5 million construction project, where ABC Bank will guarantee the performance obligations of XYZ Construction Company to City of Brussels, valid until March 15, 2025, with a maximum liability of €1 million."
1. Parties: Identifies the Bank (Guarantor), the Principal (party whose performance is being guaranteed), and the Beneficiary
2. Background: Brief context of the underlying contract/obligation and purpose of the guarantee
3. Definitions: Key terms used in the guarantee, including 'Guaranteed Amount', 'Expiry Date', and 'Underlying Contract'
4. Guarantee: Core section stating the bank's guarantee commitment and the maximum guaranteed amount
5. Conditions for Payment: Specific circumstances and procedures under which the guarantee can be called upon
6. Form of Demand: Requirements for making a valid demand under the guarantee
7. Payment Terms: Timeframe and method for payment upon valid demand
8. Expiry: Duration of the guarantee and conditions for expiry or termination
9. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdiction
10. Notices: Communication procedures and contact details for all parties
1. Transfer and Assignment: Include when the guarantee needs to be transferable or when assignment should be specifically prohibited
2. Multiple Demands: Include when multiple partial demands up to the guaranteed amount need to be explicitly permitted
3. Language: Include when the guarantee might be used internationally to specify the prevailing language version
4. Bank's Independent Obligation: Include to emphasize the autonomous nature of the guarantee when required
5. Force Majeure: Include when specific force majeure provisions are required beyond standard Belgian law provisions
6. Counter-Indemnity: Include when there's a separate counter-indemnity agreement with the Principal
1. Form of Demand: Template for making a valid demand under the guarantee
2. Underlying Contract Details: Summary or extract of the relevant parts of the underlying contract being guaranteed
3. Authorization Documents: Copies of corporate authorizations and signing powers of the bank representatives
4. Contact Details: Complete contact information for all parties for serving notices
Authors
Guaranteed Amount
Underlying Contract
Principal
Beneficiary
Guarantor
Expiry Date
Demand
Business Day
Guaranteed Obligations
Payment Period
Maximum Liability
Claim Notice
Force Majeure Event
Material Adverse Change
Permitted Transfer
Security Interest
Authorization
Applicable Law
Bank Account
Effective Date
Event of Default
Performance Obligations
Required Currency
Specified Location
Working Hours
Valid Claim
Termination Event
Counter-Indemnity
Authorized Representative
Payment Terms
Demand Procedure
Maximum Liability
Duration and Expiry
Assignment and Transfer
Representations and Warranties
Communications
Governing Law
Jurisdiction
Independent Obligation
Amendment
Severability
Force Majeure
Notices
Bank's Rights and Obligations
Claims Process
Currency and Payment
Counter-Indemnity
Termination
Waiver
Costs and Expenses
Language
Entire Agreement
Banking and Financial Services
Construction and Infrastructure
Manufacturing
Energy and Utilities
International Trade
Real Estate Development
Technology and Telecommunications
Government and Public Sector
Engineering and Construction
Industrial Projects
Legal
Finance
Treasury
Project Management
Commercial
Risk Management
Procurement
Compliance
Corporate Banking
Business Development
Chief Financial Officer
Treasury Manager
Project Manager
Contract Manager
Legal Counsel
Finance Director
Risk Manager
Commercial Director
Procurement Manager
Corporate Banker
Business Development Manager
Company Secretary
Financial Controller
Legal Director
Compliance Officer
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