A Back to Back Bank Guarantee is a specialized financial instrument commonly used in complex commercial transactions under Indian jurisdiction. This arrangement is typically employed when a beneficiary requires a guarantee from a local bank, but the principal's banking relationship is with a different bank, often in another location. The document becomes essential in international trade, large infrastructure projects, or government tenders where local bank guarantees are mandatory. It outlines the mechanism where the corresponding bank issues a guarantee to the beneficiary, backed by a counter-guarantee from the primary bank, thus creating a chain of guarantees. The document must comply with Reserve Bank of India guidelines, the Banking Regulation Act, and other relevant Indian banking laws while addressing the commercial requirements of all parties involved.

1. Parties: Identifies all parties involved: Primary Bank (Issuing Bank), Corresponding Bank, Principal/Applicant, and Beneficiary

2. Background: Context of the underlying transaction and the need for the back-to-back guarantee arrangement

3. Definitions: Defines key terms used throughout the document including 'Primary Guarantee', 'Counter Guarantee', 'Guarantee Amount', etc.

4. Scope of Guarantee: Details of the guarantee amount, purpose, and coverage

5. Terms of the Guarantee: Specific conditions under which the guarantee can be invoked

6. Duration and Validity: Commencement date, expiry date, and any auto-renewal provisions

7. Payment Terms: Process for demand and payment under the guarantee, including timeline and documentation requirements

8. Rights and Obligations: Responsibilities and rights of each party under the guarantee arrangement

9. Representations and Warranties: Standard declarations by the parties regarding their capacity and authority

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

11. Enforcement Mechanism: Procedures for enforcing the guarantee and making claims

12. Governing Law and Jurisdiction: Specifies applicable law and courts having jurisdiction