The Performance Bank Guarantee is a crucial financial instrument in Danish commercial transactions, particularly in construction, infrastructure, and large-scale service contracts. It serves as a risk mitigation tool where the bank guarantees the performance obligations of a contractor or supplier. The document is structured according to Danish banking regulations and contract law principles, typically covering 5-10% of the contract value. Performance Bank Guarantees are commonly required in public tenders and major private contracts in Denmark, providing beneficiaries with secure and readily accessible financial compensation in case of contractor default. The guarantee can be either conditional or unconditional (on-demand), with specific requirements for calling on the guarantee outlined in accordance with Danish banking practices and legal requirements.
Create a bespoke document in minutes, or upload and review your own.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get your first 2 documents free
Your data doesn't train Genie's AI
You keep IP ownership of your information
Key Requirements PROMPT example:
Performance Bank Guarantee
1. Bank Details and Reference: Full details of the issuing bank, guarantee reference number, and date
2. Beneficiary Details: Complete identification of the beneficiary including name, registration number, and address
3. Principal Details: Complete identification of the principal (the party whose performance is being guaranteed)
4. Underlying Contract Reference: Clear identification of the contract or obligation being guaranteed, including date and reference numbers
5. Guarantee Amount: The specific amount being guaranteed, currency, and any automatic reduction mechanisms
6. Scope of Guarantee: Clear description of what is being guaranteed and the conditions under which the guarantee can be called
7. Duration and Validity: Effective date, expiry date, and any automatic extension provisions
8. Demand Requirements: Specific requirements and format for making a valid demand under the guarantee
9. Payment Terms: Timeline for payment upon valid demand and payment method
10. Governing Law and Jurisdiction: Explicit statement of Danish law as governing law and jurisdiction for disputes
1. Language Provision: Required when the guarantee might be used internationally, specifying that English version prevails
2. Conditional Performance Terms: Used when the guarantee is conditional rather than on-demand, specifying the conditions that must be met
3. Assignment Clause: Required when the guarantee needs to be transferable to another beneficiary
4. Reduction Schedule: Used when the guarantee amount reduces over time according to a preset schedule
5. Multiple Beneficiaries: Required when there is more than one beneficiary, specifying their rights and relationships
6. Force Majeure: Optional clause specifying circumstances under which the bank's obligations might be affected by events beyond its control
7. URDG 758 Application: Required when the guarantee is subject to ICC Uniform Rules for Demand Guarantees
1. Form of Demand: Template for making a valid demand under the guarantee
2. Underlying Contract Extract: Relevant excerpts from the underlying contract that specify the performance requirements being guaranteed
3. Reduction Schedule Table: If applicable, detailed table showing the schedule of guarantee amount reductions
4. Authorized Signatories: List of persons authorized to make demands under the guarantee with specimen signatures
Authors
Relevant legal definitions
Guarantee Amount
Beneficiary
Principal
Issuing Bank
Underlying Contract
Demand
Expiry Date
Business Day
Banking Day
Guaranteed Obligations
Event of Default
Maximum Liability
Effective Date
Guarantee Period
Supporting Documents
Written Demand
Payment Period
Authorized Representative
Force Majeure Event
Material Breach
Compliant Demand
Contract Price
Performance Default
Claim Notice
Governing Law
Beneficiary
Principal
Issuing Bank
Underlying Contract
Demand
Expiry Date
Business Day
Banking Day
Guaranteed Obligations
Event of Default
Maximum Liability
Effective Date
Guarantee Period
Supporting Documents
Written Demand
Payment Period
Authorized Representative
Force Majeure Event
Material Breach
Compliant Demand
Contract Price
Performance Default
Claim Notice
Governing Law
Clauses
Guarantee Issuance
Maximum Liability
Duration and Validity
Demand Requirements
Payment Obligations
Assignment
Force Majeure
Jurisdiction
Governing Law
Notices
Amendments
Bank's Undertaking
Enforcement
Waiver
Severability
Language
Costs and Expenses
Reduction Mechanism
Termination
Dispute Resolution
Compliance with Laws
Representations and Warranties
Communications
Currency
Documentary Requirements
Maximum Liability
Duration and Validity
Demand Requirements
Payment Obligations
Assignment
Force Majeure
Jurisdiction
Governing Law
Notices
Amendments
Bank's Undertaking
Enforcement
Waiver
Severability
Language
Costs and Expenses
Reduction Mechanism
Termination
Dispute Resolution
Compliance with Laws
Representations and Warranties
Communications
Currency
Documentary Requirements
Relevant Industries
Relevant Teams
Relevant Roles
Find the exact document you need
International Bank Guarantee
A Danish law-governed bank guarantee document establishing terms for international financial undertakings between parties, with specific provisions for cross-border enforcement.
find out more
Business Loan Guarantee
A Danish law-governed agreement where a guarantor commits to securing a borrower's loan obligations to a lender.
find out more
Standby Letter Of Guarantee
A Danish law-governed bank guarantee instrument providing payment assurance to beneficiaries upon specified conditions, combining local legal requirements with international banking standards.
find out more
Cash Bank Guarantee
A Danish law-governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon demand, subject to defined terms and conditions.
find out more
Bank Standby Letter Of Credit
A Danish law-governed bank guarantee instrument providing payment security upon presentation of compliant documents, commonly used in international trade and financial transactions.
find out more
Purchase Bank Guarantee
A Danish law-governed bank guarantee securing payment obligations of a purchaser to a seller, backed by a bank's promise to pay upon specified conditions.
find out more
Government Deposit Guarantee
Danish law agreement establishing government guarantee of deposits in financial institutions, aligned with national and EU regulatory requirements.
find out more
Financial Bank Guarantee
A Danish law-governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon certain conditions or default events.
find out more
Deposit Guarantee
Danish law-governed Deposit Guarantee agreement establishing deposit protection terms under the Danish deposit guarantee scheme.
find out more
Bank Guarantee For Deposit
A Danish law-governed bank guarantee where a financial institution guarantees payment of a specified deposit amount to a beneficiary on behalf of a principal.
find out more
Guarantee Letter
A Danish law-governed guarantee commitment where one party ensures the financial or performance obligations of another party to a beneficiary.
find out more
Standby Letter Of Credit And Bank Guarantee
Template for Standby Letters of Credit and Bank Guarantees under Danish law, providing a structured framework for bank-issued payment guarantees and financial security instruments.
find out more
Trade Finance Bank Guarantee
A Danish law-governed bank guarantee document where a bank commits to pay a beneficiary upon specified conditions, used in trade finance transactions.
find out more
Bank Guarantee Bond
A Danish law-governed financial instrument where a bank guarantees payment to a beneficiary upon specified conditions or principal's default.
find out more
Advance Payment Guarantee Bond
A Danish law-governed bank guarantee securing advance payments in commercial transactions, providing financial security for the beneficiary against the principal's default.
find out more
Advance Payment Guarantee Letter
A Danish law-governed bank guarantee securing advance payments made by a buyer to a supplier, ensuring repayment if contractual obligations are not met.
find out more
Bank Counter Guarantee
A Danish law-governed bank counter-guarantee document establishing terms and conditions for one bank's guarantee to another bank in support of a primary guarantee.
find out more
Back To Back Bank Guarantee
A Danish law-governed bank guarantee document establishing a counter-guarantee arrangement between banks to support a primary guarantee issued to a beneficiary.
find out more
Bid Bond Tender Guarantee
A Danish law-governed financial guarantee securing a bidder's obligations in a tender process, ensuring compensation to the beneficiary if the bidder fails to honor their bid commitments.
find out more
Bank Letter Of Comfort
A Danish-law governed bank document providing assurance about a client's financial standing or creditworthiness to a third party, without creating a legally binding guarantee.
find out more
Download our whitepaper on the future of AI in Legal
By providing your email address you are consenting to our Privacy Notice.
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
Our bank-grade security infrastructure undergoes regular external audits
We are ISO27001 certified, so your data is secure
Organizational security
You retain IP ownership of your documents
You have full control over your data and who gets to see it
Innovation in privacy:
Genie partnered with the Computational Privacy Department at Imperial College London
Together, we ran a £1 million research project on privacy and anonymity in legal contracts
Want to know more?
Visit our Trust Centre for more details and real-time security updates.
Read our Privacy Policy.