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1. Parties: Identifies the three key parties: the Bank (Guarantor), the Applicant (Principal Debtor), and the Beneficiary
2. Background: Explains the underlying transaction or relationship necessitating the bank guarantee
3. Definitions: Defines key terms used throughout the guarantee document
4. Guarantee Amount: Specifies the maximum amount for which the bank guarantee is issued
5. Scope of Guarantee: Details the specific obligations or performance being guaranteed
6. Duration and Validity: Specifies that the guarantee is open-ended and conditions for its continuation
7. Demand and Payment: Procedures for making a demand under the guarantee and payment terms
8. Bank's Rights and Obligations: Outlines the rights, obligations, and limitations of the bank's liability
9. Governing Law and Jurisdiction: Specifies Indian law as governing law and relevant jurisdiction
10. Notices: Details how formal communications between parties should be made
11. Assignment and Transfer: Restrictions on assignment or transfer of the guarantee
1. Counter Guarantee: Required when there is a counter-guarantee from another bank or institution
2. Step-in Rights: Include when the guarantee involves project financing or complex commercial transactions
3. Multiple Beneficiaries: Required when the guarantee is issued in favor of multiple beneficiaries
4. Dispute Resolution: Detailed arbitration or mediation procedures if preferred over court jurisdiction
5. Language: Required when the guarantee might be used internationally or in non-English speaking regions
6. Force Majeure: Include when specific events might affect the guarantee's enforcement
7. Stamp Duty Declaration: Required in states with specific stamp duty requirements for bank guarantees
1. Schedule 1 - Form of Demand: Template for making a valid demand under the guarantee
2. Schedule 2 - Underlying Contract Details: Details of the primary contract or obligation being guaranteed
3. Schedule 3 - Bank Account Details: Payment account details for the beneficiary
4. Schedule 4 - Authorization Documents: Copies of corporate authorizations and board resolutions
5. Appendix A - Supporting Documents: List of required supporting documents for guarantee activation
6. Appendix B - Communication Procedures: Detailed procedures for making claims and communications
Bank
Beneficiary
Business Day
Claim
Counter Guarantee
Demand
Demand Notice
Effective Date
Event of Default
Guaranteed Amount
Guaranteed Obligations
Invocation
Maximum Liability
Notices
Obligations
Original Guarantee
Payment Date
Principal Debtor
Release Date
Relevant Jurisdiction
RBI
Security
Stamp Duty
Supporting Documents
Underlying Contract
Valid Claim
Writing
Working Hours
Interpretation
Definitions
Guarantee
Payment Obligations
Demand Procedure
Duration
Bank's Rights
Beneficiary's Rights
Assignment
Transfer
Representations and Warranties
Counter-Indemnity
Notices
Enforcement
Jurisdiction
Governing Law
Amendments
Severability
Entire Agreement
Force Majeure
Dispute Resolution
Stamp Duty
Costs and Expenses
Regulatory Compliance
Waiver
Counterparts
Confidentiality
Authority
Language
Banking and Financial Services
Construction and Infrastructure
Real Estate
Manufacturing
International Trade
Energy and Utilities
Telecommunications
Government and Public Sector
Mining and Resources
Retail and Consumer Goods
Legal
Finance
Treasury
Procurement
Risk Management
Compliance
Operations
Commercial
Project Management
Credit
Corporate Secretarial
Chief Financial Officer
Finance Manager
Treasury Manager
Bank Relationship Manager
Contract Manager
Legal Counsel
Compliance Officer
Risk Manager
Project Manager
Procurement Manager
Company Secretary
Commercial Director
Credit Manager
Operations Manager
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