Revolving Bank Guarantee Template for Ireland

This document is essential for businesses requiring ongoing guarantee facilities under Irish law, where traditional single-use guarantees are insufficient for their operational needs. A Revolving Bank Guarantee provides flexibility by allowing multiple drawings up to a maximum amount, with the guarantee amount automatically reinstating after each drawing is satisfied. This structure is particularly valuable for businesses with recurring guarantee requirements, such as those involved in multiple construction projects, regular import/export operations, or ongoing government contracts. The document must comply with Irish financial services legislation, including the Central Bank Act and relevant EU regulations, while addressing practical commercial needs such as drawing mechanisms, fee structures, and security arrangements. It's commonly used in international trade, construction projects, and various commercial transactions where ongoing financial assurance is required.

1. Parties: Identifies the guarantor bank, the applicant/principal, and the beneficiary

2. Background: Sets out the context and purpose of the guarantee, including the underlying commercial relationship

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

4. Guarantee Amount and Scope: Specifies the maximum guarantee amount and the revolving nature of the facility

5. Term and Renewal: Details the initial term, renewal conditions, and expiry mechanisms

6. Conditions for Drawing: Specifies the circumstances and procedures under which the guarantee can be drawn

7. Reinstatement Provisions: Explains how the guarantee amount is reinstated after partial drawings

8. Fees and Charges: Details all fees, charges, and commission applicable to the guarantee

9. Bank's Rights and Obligations: Sets out the rights, obligations, and protections of the guarantor bank

10. Counter-Indemnity: Establishes the applicant's obligation to indemnify the bank

11. Representations and Warranties: Contains standard banking and financial representations and warranties

12. Events of Default: Lists circumstances constituting default and their consequences

13. Termination: Details the conditions and process for terminating the guarantee

14. Notices: Specifies how formal communications between parties should be made

15. Governing Law and Jurisdiction: Establishes Irish law as governing law and specifies jurisdiction for disputes