Performance Bank Guarantee for Malaysia

Performance Bank Guarantee Template for Malaysia

A Performance Bank Guarantee under Malaysian law is a financial instrument issued by a bank that provides an unconditional undertaking to pay a specified sum to the beneficiary upon demand if the principal fails to fulfill their contractual obligations. The document is governed by Malaysian law, specifically the Financial Services Act 2013 and the Contracts Act 1950, and follows Bank Negara Malaysia guidelines. It serves as a risk mitigation tool, ensuring that the beneficiary can recover financial losses resulting from the principal's non-performance or default.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Performance Bank Guarantee

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Performance Bank Guarantee?

Performance Bank Guarantees are essential financial instruments in Malaysian business transactions, particularly in projects requiring substantial performance obligations. This document is typically required when one party needs security for the performance obligations of another party, such as in construction projects, supply contracts, or service agreements. The guarantee provides the beneficiary with direct recourse to the bank for a specified sum if the principal fails to meet their contractual obligations. Under Malaysian law, these guarantees must comply with local banking regulations and the Financial Services Act 2013, while following Bank Negara Malaysia's guidelines. The document includes key elements such as the guaranteed amount, validity period, conditions for demand, and specific performance obligations being secured.

What sections should be included in a Performance Bank Guarantee?

1. Parties: Identification of the Bank (Guarantor), Principal (Party whose performance is guaranteed), and Beneficiary

2. Background: Details of the underlying contract or obligation being guaranteed, including reference numbers and dates

3. Definitions: Key terms used in the guarantee including 'Guaranteed Sum', 'Expiry Date', and 'Demand'

4. Guarantee and Undertaking: Core obligation of the bank to pay the guaranteed sum upon valid demand

5. Amount of Guarantee: Specification of the maximum guaranteed sum in figures and words

6. Validity Period: Clear statement of when the guarantee becomes effective and its expiry date

7. Conditions for Demand: Specific requirements and process for making a valid claim under the guarantee

8. Payment Obligations: Terms of payment including timeline and method upon receipt of valid demand

9. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction of Malaysian courts

What sections are optional to include in a Performance Bank Guarantee?

1. Extension Provisions: Used when parties want to include mechanism for extending the validity period

2. Partial and Multiple Demands: Include when allowing the beneficiary to make multiple claims up to the guaranteed sum

3. Assignment Restrictions: Include when specific restrictions on assignment of the guarantee are required

4. Counter-Indemnity: Used when the bank requires specific indemnity provisions from the principal

5. Language Provision: Include when the guarantee might be translated or used in international context

6. Bank's Maximum Liability: Include when need to clarify liability limits including interest and costs

What schedules should be included in a Performance Bank Guarantee?

1. Form of Demand: Template for making a valid demand under the guarantee

2. Specimen Signatures: Authorized signatures of the beneficiary's representatives for making demands

3. Underlying Contract Extract: Relevant excerpts from the underlying contract being guaranteed

4. Supporting Documents List: List of documents required to be submitted with any demand

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use
Relevant Industries

Construction

Infrastructure

Manufacturing

Engineering

Real Estate Development

Energy

Oil and Gas

Telecommunications

Government Contracts

International Trade

Relevant Teams

Legal

Finance

Treasury

Procurement

Project Management

Risk Management

Commercial

Compliance

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Contract Manager

Project Manager

Treasury Manager

Risk Manager

Procurement Manager

Commercial Director

Business Development Manager

Company Secretary

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Foreign Bank Guarantee

A Malaysian law-governed bank guarantee instrument providing financial security in cross-border transactions, issued by a bank to protect beneficiary interests.

find out more

Bank Guarantee Return Letter

A Malaysian legal document used to formally return a bank guarantee to the issuing bank and release it from obligations under Malaysian banking regulations.

find out more

International Bank Guarantee

A Malaysian law-governed bank guarantee providing financial security in international transactions through an irrevocable undertaking from a bank to pay a specified sum upon defined conditions.

find out more

Business Loan Guarantee

A Malaysian law-governed agreement where a guarantor secures a borrower's business loan obligations to a lender.

find out more

Performance Bond Guarantee

A Malaysian law-governed financial guarantee instrument where a bank ensures payment to a beneficiary if a contractor fails to meet contractual obligations.

find out more

Cheque Guarantee Letter

A Malaysian banking instrument where a bank guarantees payment of a specific cheque to the beneficiary under Malaysian law.

find out more

Guarantee Letter Payment

A Malaysian law-governed financial instrument where a guarantor commits to pay a specified sum to a beneficiary upon demand or specified conditions.

find out more

Bank Financial Guarantee

A Malaysian law-governed bank guarantee document where a bank undertakes to pay a specified sum to a beneficiary upon default of the principal debtor.

find out more

Contract Performance Bank Guarantee

A Malaysian law-governed bank guarantee securing a contractor's performance obligations, providing financial security to the project owner through an independent bank undertaking.

find out more

Post Bank Guarantee

A Malaysian law-governed bank guarantee document where a bank guarantees payment or performance to a beneficiary on behalf of its client.

find out more

Fast Bank Guarantee

A Malaysian banking instrument providing quick, unconditional payment guarantee from a bank to a beneficiary upon demand, governed by Malaysian financial regulations.

find out more

Bank Transfer Guarantee

A Malaysian law-governed banking instrument where a bank guarantees payment transfer to a beneficiary upon compliant demand.

find out more

Bank Personal Guarantee

A Malaysian law-governed document where a guarantor provides personal security to a bank for a third party's obligations.

find out more

Contra Bank Guarantee

A Malaysian law-governed financial instrument where a bank issues a guarantee in response to another bank's guarantee, establishing reciprocal obligations between financial institutions.

find out more

Letter Of Credit Guarantee

A Malaysian law-governed bank guarantee securing payment obligations under a letter of credit, regulated by the Financial Services Act 2013 and Bank Negara Malaysia guidelines.

find out more

Original Bank Guarantee

A Malaysian law-governed bank undertaking to pay a specified sum to a beneficiary upon demand, serving as security for the principal's obligations.

find out more

Performance Guarantee In Tender

A Malaysian law-governed financial guarantee issued by a bank to secure a tender participant's obligations to the tender issuer.

find out more

Construction Bank Guarantee

A Malaysian law-governed bank guarantee securing contractor obligations in construction projects, providing financial security to project owners.

find out more

Bank Endorsement Guarantee

A Malaysian law-governed bank guarantee document where a financial institution guarantees the obligations of its client to a third party, subject to Malaysian banking regulations.

find out more

Authorization Letter To Collect Bank Guarantee

A Malaysian law-compliant authorization letter empowering a designated person to collect a bank guarantee from a financial institution.

find out more

Performance Bank Guarantee In Tender

A Malaysian law-governed bank guarantee securing a tender participant's performance obligations, where the bank promises to pay the beneficiary if the principal defaults on tender commitments.

find out more

Indirect Bank Guarantee

A Malaysian law-governed financial instrument where a local bank issues a guarantee based on a foreign bank's counter-guarantee to a local beneficiary.

find out more

Standby Letter Of Credit For Lease

A Malaysian law-governed banking instrument that provides security to landlords against tenant default under lease agreements, issued by banks as an alternative to traditional security deposits.

find out more

Bank To Bank Guarantee

Malaysian law-compliant Bank to Bank Guarantee template establishing guarantee obligations between financial institutions under FSA 2013 and BNM regulations.

find out more

Bank Guarantee Transferable

A Malaysian law-governed bank guarantee that allows the beneficiary to transfer their rights to a new beneficiary, subject to specified terms and conditions.

find out more

Unsecured Bank Guarantee

A Malaysian law-governed financial instrument where a bank provides an unconditional guarantee to pay a beneficiary upon demand, without securing collateral from the applicant.

find out more

Domestic Bank Guarantee

A Malaysian law-governed bank guarantee document where a bank provides an irrevocable undertaking to pay a specified sum to a beneficiary upon demand in domestic transactions.

find out more

Non Financial Guarantee

A Malaysian law-governed agreement where a Guarantor guarantees the non-financial obligations of a Principal to a Beneficiary.

find out more

Digital Bank Guarantee

A digitally-issued bank guarantee under Malaysian law, providing secure electronic payment assurance from a bank to a beneficiary on behalf of an applicant.

find out more

Drawdown Bank Guarantee

A Malaysian law-governed bank guarantee allowing specified drawdowns against a guaranteed amount, providing financial security in commercial transactions.

find out more

Corporate Bank Guarantee

A Malaysian law-governed bank guarantee where a bank guarantees payment or performance on behalf of a corporate client to a beneficiary.

find out more

Bank Guarantee For Commercial Lease

A Malaysian law-governed bank guarantee providing security to a landlord for a tenant's obligations under a commercial lease agreement.

find out more

Guarantee Letter

A Malaysian law-governed document where a guarantor commits to fulfill another party's obligations to a creditor if the primary debtor defaults.

find out more

Counter Standby Letter Of Credit

A Malaysian-law governed banking instrument that serves as a counter-guarantee supporting a primary Standby Letter of Credit issuance.

find out more

Standby Letter Of Credit And Bank Guarantee

A Malaysian law-governed financial security instrument combining Standby Letter of Credit and Bank Guarantee provisions, ensuring payment or performance obligations through bank-backed guarantees.

find out more

Advising Bank In Bank Guarantee

Malaysian law agreement governing an Advising Bank's roles and responsibilities in bank guarantee arrangements, including authentication and communication protocols.

find out more

Trade Finance Bank Guarantee

A Malaysian-law governed bank guarantee instrument providing financial security in trade transactions, issued by a bank to protect beneficiaries against non-performance or default.

find out more

Letter Of Credit And Standby Letter Of Credit

A Malaysian law-governed banking instrument that provides payment assurance in international trade transactions, subject to document compliance and banking regulations.

find out more

Bank Credit Guarantee

A Malaysian law-governed Bank Credit Guarantee agreement establishing security for banking facilities through guarantor undertakings, compliant with local banking regulations.

find out more

Bank Assurance Letter

A Malaysian banking instrument providing financial guarantee or assurance from a bank to a beneficiary regarding a third party's obligations, subject to Malaysian banking regulations.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now