The Bank Guarantee Letter is a crucial financial instrument used in various commercial and contractual relationships where one party seeks financial security from another. Under Maltese law, this document provides a bank's irrevocable commitment to pay a specified amount to a beneficiary upon specific conditions being met, typically when the principal party fails to fulfill their contractual obligations. The guarantee can be used for various purposes including bid bonds, performance bonds, advance payment guarantees, and rental guarantees. Bank Guarantee Letters are particularly important in international trade and commercial transactions, where they provide security and confidence to parties engaging in significant financial commitments. The document must comply with Maltese banking regulations and financial services laws, including EU regulations that have been incorporated into Maltese law.

1. Bank Details and Reference Number: Full details of the issuing bank, including branch information and unique guarantee reference number

2. Date and Place of Issue: Clear statement of when and where the guarantee is issued

3. Beneficiary Details: Complete name and address of the party in whose favor the guarantee is issued

4. Principal Details: Complete name and address of the party on whose behalf the guarantee is issued

5. Guarantee Amount: The specific amount of the guarantee in numbers and words, including currency

6. Purpose of Guarantee: Clear description of the underlying transaction or obligation being guaranteed

7. Validity Period: Explicit start and end dates of the guarantee, including any automatic extension conditions

8. Terms of Payment: Conditions under which the guarantee can be called upon and payment procedures

9. Governing Law and Jurisdiction: Statement that the guarantee is governed by Maltese law and subject to Maltese courts