Guarantee Fee Agreement for Singapore

Guarantee Fee Agreement Template for Singapore

A Guarantee Fee Agreement under Singapore law is a legally binding document that establishes the terms and conditions for payment of fees in exchange for providing a guarantee. The agreement details the fee structure, payment schedule, and obligations of both the guarantor and the beneficiary. It incorporates Singapore's specific legal requirements, including compliance with the Contracts Act and Civil Law Act, and typically includes provisions for stamp duty requirements and regulatory compliance where applicable.

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What is a Guarantee Fee Agreement?

The Guarantee Fee Agreement is commonly used in Singapore when one party agrees to provide a guarantee in favor of another party in exchange for a fee. This document is essential for establishing the commercial terms of the guarantee arrangement, including fee calculation methods, payment schedules, and related obligations. Under Singapore law, such agreements must comply with specific legal requirements, including the Contracts Act and Civil Law Act. The agreement is particularly relevant in financial transactions, construction projects, and international trade where guarantees are frequently required to secure obligations.

What sections should be included in a Guarantee Fee Agreement?

1. Parties: Identifies and defines all parties to the agreement

2. Background: Context of the guarantee fee arrangement and underlying obligations

3. Definitions: Key terms used throughout the agreement

4. Guarantee Fee: Amount, calculation method, and payment terms

5. Payment Terms: Timing, method, and currency of payments

6. Duration: Term of the agreement and renewal provisions

7. Governing Law: Singapore law clause and jurisdiction

What sections are optional to include in a Guarantee Fee Agreement?

1. Tax Provisions: Include when cross-border elements exist or international parties are involved

2. Currency Exchange: Exchange rate provisions for agreements involving multiple currencies

3. Force Majeure: Events beyond parties' control, typically included in long-term agreements

4. Regulatory Compliance: Specific compliance obligations when regulated entities are involved

What schedules should be included in a Guarantee Fee Agreement?

1. Fee Calculation Schedule: Detailed methodology for calculating guarantee fees

2. Payment Schedule: Timeline of payment dates and amounts

3. Underlying Guarantee Details: Copy or summary of the related guarantee

4. Contact Details: Key contact persons and notice details

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

Singapore

Publisher

Genie AI

Document Type

Fee Agreement

Cost

Free to use
Industries

Contracts Act (Cap. 53): Primary legislation governing contract formation, consideration requirements, and validity of contracts in Singapore. Essential for the basic structure and enforceability of the Guarantee Fee Agreement.

Civil Law Act (Cap. 43): Covers requirements for contracts in writing and consideration for guarantees, which are crucial elements for guarantee agreements in Singapore.

Stamp Duties Act (Cap. 312): Regulates stamp duty requirements on guarantee documents, including timing and payment obligations for such duties.

MAS Guidelines: Regulatory guidelines from the Monetary Authority of Singapore that may apply if the guarantee involves financial institutions, including compliance requirements.

Companies Act (Cap. 50): Relevant when parties are companies, covering corporate authority requirements and corporate benefit considerations for entering into guarantees.

Banking Act (Cap. 19): Applicable when banks are involved in the guarantee arrangement, providing specific regulations for banking institutions.

Consumer Protection (Fair Trading) Act: Provides protection measures if the guarantee agreement involves consumer guarantees or consumer-related transactions.

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data of parties involved in the agreement.

AML/CFT Requirements: Anti-Money Laundering and Countering the Financing of Terrorism requirements that may apply depending on the nature and parties of the guarantee.

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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