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Indirect Bank Guarantee
"I need an Indirect Bank Guarantee document under Indonesian law for a construction project, where Deutsche Bank Singapore will provide a counter-guarantee to Bank Mandiri Indonesia for USD 5 million, effective from March 1, 2025."
1. Parties: Identifies all parties involved: the Applicant (Principal), the Issuing Bank, and the Counter-Guaranteeing Bank
2. Background: Explains the context of the guarantee, including the underlying transaction and the relationship between parties
3. Definitions: Defines key terms used throughout the guarantee document
4. Guarantee Amount and Currency: Specifies the maximum amount of the guarantee and the currency in which it is issued
5. Purpose of Guarantee: Details the specific purpose and scope of the guarantee
6. Duration and Validity: Specifies the effective date, expiry date, and any automatic extension provisions
7. Conditions for Payment: Sets out the circumstances and conditions under which the guarantee can be called
8. Payment Mechanism: Details the process and timeline for making payments under the guarantee
9. Counter-Guarantee Provisions: Specifies the terms of the counter-guarantee between the banks
10. Rights and Obligations: Lists the specific rights and obligations of each party
11. Fees and Charges: Details all applicable fees, charges, and commission
12. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and relevant jurisdiction
1. Language Requirements: Required when the guarantee needs to be bilingual or when specific language requirements apply
2. Anti-Money Laundering Provisions: Required for high-value guarantees or when dealing with specific jurisdictions
3. Force Majeure: Optional clause detailing circumstances under which obligations may be suspended
4. Assignment Restrictions: Required when transfer or assignment of guarantee rights needs to be restricted
5. Electronic Communications: Required when parties agree to accept electronic notifications and communications
6. Dispute Resolution: Optional detailed dispute resolution procedures beyond basic jurisdiction clause
7. Shariah Compliance: Required when the guarantee needs to comply with Islamic banking principles
1. Schedule 1 - Form of Demand: Standard format for making a demand under the guarantee
2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, charges, and commission
3. Schedule 3 - Supporting Documents: List of required documents to be submitted with guarantee application
4. Schedule 4 - Communication Details: Contact information and authorized signatories for all parties
5. Appendix A - Underlying Contract Details: Summary of the main contract or obligation being guaranteed
6. Appendix B - Bank Authorization Documents: Copies of relevant banking licenses and authorizations
Authors
Banking Day
Beneficiary
Counter-Guarantee
Counter-Guaranteeing Bank
Demand
Effective Date
Expiry Date
Guarantee Amount
Guarantee Period
Issuing Bank
Maximum Liability Amount
OJK
Bank Indonesia
Underlying Contract
Permitted Transfer
Principal
Regulatory Authority
Security Interest
Supporting Documents
SWIFT
Terms and Conditions
Validity Period
Event of Default
Force Majeure Event
Guarantee Fee
Interest Rate
Payment Date
Relevant Jurisdiction
Authorized Representative
Business Day
Claim Notice
Guarantee Obligation
Indonesian Banking Law
Notice of Drawing
Original Guarantee
Relevant Currency
Scope of Guarantee
Counter-Guarantee Obligations
Payment Terms
Fees and Charges
Duration and Validity
Demands and Claims
Bank's Rights and Obligations
Applicant's Representations and Warranties
Assignment and Transfer
Enforcement
Force Majeure
Governing Law
Jurisdiction
Notices
Regulatory Compliance
Anti-Money Laundering
Confidentiality
Amendment and Modification
Indemnification
Termination
Language
Electronic Communications
Severability
Entire Agreement
Counterparts
Banking and Financial Services
International Trade
Construction and Infrastructure
Manufacturing
Energy and Resources
Import/Export
Telecommunications
Real Estate Development
Mining
Oil and Gas
Legal
Finance
Treasury
Risk Management
Compliance
International Banking
Trade Finance
Corporate Banking
Operations
Credit Risk
Chief Financial Officer
Treasury Manager
Trade Finance Manager
Risk Management Officer
Legal Counsel
Compliance Officer
International Banking Manager
Corporate Banking Relationship Manager
Finance Director
Contract Manager
Banking Operations Manager
Credit Risk Officer
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