Guarantee Facility Agreement Template for Singapore

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Key Requirements PROMPT example:

Guarantee Facility Agreement

"Need a Guarantee Facility Agreement for our Singapore subsidiary to provide multiple performance guarantees up to SGD 10 million to support our construction projects in Southeast Asia, with quarterly reporting requirements and specific provisions for early termination."

Document background
The Guarantee Facility Agreement is a crucial financial instrument in Singapore's banking and commercial landscape. It is typically used when a party requires the flexibility to obtain multiple guarantees over time without negotiating separate agreements for each guarantee. This document, governed by Singapore law, establishes the framework for issuing guarantees up to a predetermined facility limit, detailing the conditions for utilization, obligations of parties, and enforcement mechanisms. It incorporates specific requirements under Singapore's Banking Act and financial regulations, making it particularly suitable for cross-border transactions leveraging Singapore's position as a financial hub.
Suggested Sections

1. Parties: Identifies all parties to the agreement including guarantor, beneficiary, and principal debtor

2. Background: Context of the guarantee facility and underlying obligations

3. Definitions: Key terms used throughout the agreement

4. Facility Terms: Details of the guarantee facility including amount, purpose, and availability period

5. Guarantee Provisions: Core terms of the guarantee including scope and nature of obligations

6. Representations and Warranties: Statements of fact and assurances given by the guarantor

7. Covenants: Ongoing obligations of the guarantor

8. Events of Default: Circumstances triggering default and consequences

Optional Sections

1. Security Provisions: Additional provisions required when the guarantee is secured by collateral

2. Counter-Indemnity: Provisions for reimbursement of the guarantor by the principal debtor

3. Commission and Fees: Payment terms and fee structure for the guarantee facility

Suggested Schedules

1. Form of Demand: Standard format for making demands under the guarantee

2. Form of Guarantee: Template of individual guarantees to be issued under the facility

3. Fee Schedule: Details of fees and charges applicable to the facility

4. Conditions Precedent: List of documents and conditions required before facility becomes effective

5. Security Documents: List and/or copies of related security documents where applicable

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

Relevant legal definitions
Clauses
Industries

Contracts Act (Cap. 53): Primary legislation governing contract formation, validity, and contractual obligations in Singapore. Essential for the basic structure and enforceability of the guarantee facility agreement.

Banking Act (Cap. 19): Regulates banking operations, facilities, and security requirements. Provides framework for banking facilities and associated guarantees in Singapore.

Monetary Authority of Singapore Act: Sets out financial regulatory requirements and banking supervision guidelines that impact the structure and terms of guarantee facilities.

Companies Act (Cap. 50): Governs corporate guarantees, authority, and capacity. Includes requirements for registration of charges and corporate execution requirements.

Statute of Frauds: Legal principle requiring guarantees to be in writing and properly executed to be enforceable.

Registration Requirements: Various registration obligations including security registration under Companies Act and charges registration where applicable.

Stamp Duties Act: Legislation governing applicable stamp duties and timing requirements for payment on guarantee documents.

MAS Guidelines: Regulatory guidelines from Monetary Authority of Singapore covering banking facility requirements, risk management, and credit facility regulations.

ABS Guidelines: Association of Banks in Singapore guidelines establishing industry standard practices and documentation requirements for banking facilities.

Singapore Case Law: Relevant court decisions and precedents on guarantees, including principles of interpretation and enforcement.

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

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