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Bank Guarantee Letter
"Need a Bank Guarantee Letter for EUR 500,000 to secure an international trade transaction with a German supplier, valid from March 2025 to December 2025, with provision for partial drawings against shipping documents."
1. Bank Details: Full legal name, registration number, and registered address of the issuing bank
2. Beneficiary Details: Full name, registration details and address of the party in whose favor the guarantee is issued
3. Principal Details: Full details of the party requesting the guarantee, including registration information
4. Guarantee Amount: Specific amount in numbers and words, currency of the guarantee
5. Purpose of Guarantee: Clear statement of the underlying transaction or obligation being guaranteed
6. Validity Period: Effective date and expiry date of the guarantee, including claim period if applicable
7. Claim Conditions: Specific terms and conditions under which the guarantee can be called upon
1. Automatic Extension Clause: Optional clause used for guarantees that may need to be extended automatically, typically used in long-term projects with uncertain completion dates
2. Partial Claims Provision: Optional provision allowing for multiple partial claims up to the guarantee amount, used for staged or milestone-based transactions
3. Counter-Guarantee Reference: Optional reference to any counter-guarantee arrangements when issued under a counter-guarantee structure
4. Governing Law Declaration: Optional explicit statement of governing law when dealing with international parties
5. Language Precedence: Optional clause specifying which language version prevails in case of multiple language versions
1. Specimen Claim Format: Standard format template for submitting guarantee claims
2. Underlying Contract Reference: Summary or reference details of the main contract being guaranteed
3. Authorization Documents: Evidence of authority to issue the guarantee, including board resolutions if required
4. Supporting Documents List: List of required supporting documents to be submitted with any claim
Authors
Beneficiary
Principal
Issuing Bank
Guarantee Period
Expiry Date
Effective Date
Demand
Business Day
Underlying Transaction
Governing Law
Claim Notice
Counter-Guarantee
Force Majeure
Event of Default
Payment Currency
Guarantee Obligations
Banking Hours
Authorized Signatories
Reference Number
Banking Charges
Jurisdiction
Presented Documents
Extension Notice
Affiliate
Security Interest
Working Day
Valid Claim
Maximum Liability Amount
Guarantee Amendment
Payment Terms
Demand Requirements
Expiry and Validity
Amendment and Variation
Assignment and Transfer
Force Majeure
Representations and Warranties
Governing Law
Jurisdiction
Notices
Maximum Liability
Independent Obligation
Claims Procedure
Bank's Rights and Obligations
Currency and Payment
Document Presentation
Termination
Extension Provisions
Costs and Expenses
Indemnification
Waiver
Severability
Entire Agreement
Dispute Resolution
Counterparts
Authorized Signatories
Bank Charges
Language
Time Limits
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