Composite Bank Guarantee Template for Indonesia

The Composite Bank Guarantee is a sophisticated financial instrument utilized in complex commercial transactions under Indonesian law. It serves to consolidate multiple guarantee obligations into a single, comprehensive document, streamlining the management of various guarantees that might be required in major projects or business dealings. This document type is particularly relevant when a principal requires different types of guarantees (such as performance, payment, or maintenance guarantees) for the same project or business relationship. The Composite Bank Guarantee structure helps reduce documentation complexity while ensuring compliance with Indonesian banking regulations and civil code requirements. It's commonly used in large-scale infrastructure projects, international trade transactions, and significant commercial contracts where multiple security interests need to be protected simultaneously.

1. Parties: Identification of the Bank (Guarantor), the Principal (party requesting the guarantee), and the Beneficiary

2. Background: Context of the guarantee, underlying transaction or relationship between parties

3. Definitions: Definitions of key terms used throughout the guarantee document

4. Scope of Guarantee: Detailed description of the guaranteed obligations and types of guarantees covered

5. Guarantee Amount: Maximum liability amount and currency of the guarantee

6. Duration and Validity: Term of the guarantee, effective date, expiry date, and any automatic extension provisions

7. Demand and Payment Terms: Procedures for making claims, required documentation, and payment timeline

8. Bank's Rights and Obligations: Detailed outline of the guarantor bank's responsibilities and rights

9. Principal's Obligations: Duties and responsibilities of the principal, including indemnification obligations

10. Representations and Warranties: Standard declarations by all parties regarding their capacity and authority

11. Events of Default: Circumstances that constitute default and trigger enforcement rights

12. Governing Law and Jurisdiction: Confirmation of Indonesian law application and jurisdiction for disputes

13. Notices: Communication procedures and contact details for all parties

14. Miscellaneous: Standard boilerplate provisions including amendments, assignments, and severability