Cash Backed Bank Guarantee Template for Nigeria

1. Parties: Identification of the Bank (Guarantor), the Applicant (Customer), and the Beneficiary

2. Background: Context of the guarantee, including reference to the underlying transaction or obligation

3. Definitions: Key terms used throughout the guarantee, including banking and financial terms

4. Amount of Guarantee: Specific amount for which the guarantee is issued, currency, and any automatic reduction clauses

5. Purpose of Guarantee: Detailed description of the underlying transaction or obligation being guaranteed

6. Cash Coverage: Details of the cash deposit/backing, account information, and blocked amount

7. Duration and Validity: Commencement date, expiry date, and claim period

8. Bank's Obligations: Scope and nature of the bank's commitment, including payment terms

9. Conditions for Payment: Circumstances and documentation required for guarantee payment

10. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction for disputes

11. Notice Provisions: Communication methods and addresses for notices between parties

1. Schedule 1 - Form of Demand: Template for making a claim under the guarantee

2. Schedule 2 - Cash Coverage Details: Specific account details and arrangements for the cash backing

3. Schedule 3 - Underlying Transaction Documents: References to main transaction documents being guaranteed

4. Schedule 4 - Fee Schedule: Bank's fees, charges, and commission details

5. Appendix A - Required Documentation: List of documents required for guarantee activation and claims

6. Appendix B - Authorized Signatories: List of persons authorized to act on behalf of each party