The Bank Payment Guarantee Letter is a crucial financial instrument in Malaysian business transactions, issued when a party requires assurance of payment or financial security from another party. This document is commonly used in various commercial contexts, such as tender submissions, project contracts, or trade transactions. The guarantee must comply with Malaysian banking regulations and can be issued under either conventional or Islamic banking principles. The document typically includes details of all parties involved, the guaranteed amount, validity period, conditions for claims, and specific terms of the guarantee. It serves as a binding commitment from the issuing bank to pay the beneficiary upon valid demand, subject to the terms and conditions specified in the guarantee.

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

2. Date: Date of issuance of the guarantee

3. Beneficiary Details: Full name and address of the party receiving the guarantee

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

5. Guarantee Amount: The maximum amount guaranteed, expressed in both figures and words

6. Underlying Transaction Reference: Reference to the primary contract or transaction being guaranteed

7. Guarantee Terms: Core terms including validity period, conditions for calling on the guarantee, and payment terms

8. Expiry Details: Clear statement of when and how the guarantee expires

9. Claim Procedure: Process and requirements for making a claim under the guarantee

10. Governing Law Statement: Explicit statement that the guarantee is governed by Malaysian law

11. Bank's Authorized Signatories: Space for authorized bank officers' signatures and bank's seal