The Stand By LC Bank Guarantee is a critical financial instrument used in both domestic and international commercial transactions under South African law. It is typically employed when parties require a secure, bank-backed guarantee of payment or performance. This document becomes relevant in scenarios where a party needs independent financial security for a commercial obligation, such as contract performance, payment obligations, or tender participation. The guarantee, while following international banking practices, must comply with South African banking regulations, including the Banks Act and Financial Sector Regulation Act. It provides beneficiaries with a straightforward mechanism to claim payment upon presentation of specified documents, while offering applicants a less cash-intensive alternative to direct deposits or advance payments. The document includes specific terms regarding the guarantee amount, validity period, conditions for demand, and claims process, all structured within the South African legal framework.

1. Issuing Bank Details: Full details of the bank issuing the SBLC, including registration number and address

2. Beneficiary Details: Complete information about the party in whose favor the SBLC is issued

3. Applicant Details: Information about the party requesting the SBLC

4. Guarantee Number: Unique reference number for the SBLC

5. Amount and Currency: The maximum amount and currency of the guarantee

6. Underlying Transaction: Description of the primary obligation or transaction being guaranteed

7. Conditions for Demand: Specific conditions under which the beneficiary can make a demand under the SBLC

8. Form of Demand: Required format and content of any demand under the guarantee

9. Payment Terms: Timeframe and method for payment upon valid demand

10. Expiry Date: Clear statement of when the SBLC expires

11. Governing Law: Specification of South African law as governing law

12. Jurisdiction: Submission to jurisdiction of South African courts