Personal Banker's Guarantee Template for New Zealand

The Personal Banker's Guarantee is a crucial financial instrument used in New Zealand's commercial landscape when a party requires security for the performance of obligations by another party. This document is commonly used in various business contexts, including tender submissions, property transactions, and commercial contracts, where the beneficiary requires the security of a bank's guarantee. The guarantee must comply with New Zealand banking regulations, the Contract and Commercial Law Act 2017, and other relevant legislation. It typically includes details of the underlying transaction, the maximum guaranteed amount, validity period, and conditions for making a demand. The Personal Banker's Guarantee provides beneficiaries with a secure, independent obligation from a regulated financial institution, while protecting the interests of all parties through clear terms and conditions.

1. Parties: Identifies the bank (guarantor), the customer (principal debtor), and the beneficiary

2. Background: Explains the context of the guarantee, including reference to the underlying transaction or obligation being guaranteed

3. Definitions: Defines key terms used throughout the guarantee document

4. Guarantee and Indemnity: Sets out the bank's primary obligations and the scope of the guarantee

5. Maximum Liability: Specifies the maximum amount the bank is liable for under the guarantee

6. Duration and Expiry: Specifies the term of the guarantee and conditions for expiry

7. Demand Requirements: Details the process and requirements for making a valid demand under the guarantee

8. Payment Terms: Specifies how and when payments will be made following a valid demand

9. Bank's Rights and Obligations: Outlines the bank's rights, including right of recourse against the customer

10. Representations and Warranties: Contains standard banking and regulatory representations and warranties

11. Governing Law and Jurisdiction: Specifies New Zealand law as governing law and jurisdiction for disputes

12. Notices: Details how formal notices under the guarantee must be given

13. Execution: Formal signing section with necessary attestations