Foreign Bank Guarantee Template for India

1. Parties: Identifies the three key parties: the Bank (Guarantor), the Applicant (Principal/Account Party), and the Beneficiary

2. Background: Brief context of the underlying transaction necessitating the bank guarantee

3. Definitions: Key terms used in the guarantee document including but not limited to 'Guarantee Amount', 'Expiry Date', 'Demand Notice'

4. Guarantee Amount and Currency: Specific amount and currency of the guarantee, including any automatic reduction clauses

5. Scope of Guarantee: Clear description of the bank's undertaking and the conditions under which the guarantee can be invoked

6. Duration and Validity: Effective date, expiry date, and any claim period specifications

7. Demand and Payment Terms: Process and requirements for making a claim under the guarantee, including format of demand notice

8. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

9. Assignment and Transferability: Terms regarding whether the guarantee can be assigned or transferred

10. Communications: Methods and addresses for official communications between parties

1. Schedule 1 - Form of Demand Notice: Template for the prescribed format of demand notice to be submitted by beneficiary

2. Schedule 2 - Underlying Contract Details: Summary or extract of the main contract/agreement for which the guarantee is issued

3. Schedule 3 - Fee Schedule: Details of bank charges, commission, and other applicable fees

4. Appendix A - Supporting Documents: List of documents submitted for guarantee issuance (e.g., board resolutions, power of attorney)

5. Appendix B - Authorized Signatories: List of authorized signatories with specimen signatures