Standby Letter Of Guarantee Template for Belgium

The Standby Letter of Guarantee is a crucial financial instrument used in commercial transactions where one party seeks financial security from another. Under Belgian law, these documents are commonly utilized in international trade, construction projects, and various commercial arrangements where the beneficiary requires protection against non-performance or default by the applicant. The document contains specific details about the guaranteed amount, trigger events for payment, expiry conditions, and documentary requirements for making a claim. It combines elements of Belgian civil law, banking regulations, and international banking practices, making it particularly suitable for cross-border transactions while maintaining compliance with Belgian legal requirements and European banking standards. The involvement of regulated financial institutions as issuers provides additional security and credibility to the arrangement.

1. Issuing Bank Details: Full name, address, and reference numbers of the issuing bank

2. Beneficiary Details: Complete identification and address of the party in whose favor the guarantee is issued

3. Applicant Details: Complete identification and address of the party requesting the guarantee

4. Guarantee Number: Unique reference number for the standby letter of guarantee

5. Date of Issuance: Date when the guarantee becomes effective

6. Guarantee Amount: Maximum amount and currency of the guarantee

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

8. Trigger Events: Specific conditions under which the guarantee can be called

9. Presentation Requirements: Documents required to be presented for claiming under the guarantee

10. Expiry Details: Expiry date and conditions for the guarantee

11. Governing Law and Jurisdiction: Confirmation of Belgian law and relevant jurisdiction

12. Form of Demand: Specific format and requirements for making a demand under the guarantee