Bank Performance Guarantee Sample English Version

Bank: [Name of the Bank]

Address: [Bank Address]

Tel: [Bank Contact Number]

Email: [Bank Email Address]

Date: [Current Date]

Beneficiary: [Name of Beneficiary]

Address: [Beneficiary Address]

Tel: [Beneficiary Contact Number]

Email: [Beneficiary Email Address]

Dear Sir/Madam,

Subject: Bank Performance Guarantee - Letter of Credit No. [LC Number]

We refer to the agreement dated [Agreement Date] entered into between the undersigned Bank and [Name of Beneficiary] (hereinafter referred to as "the Beneficiary") and in accordance with your request, we hereby establish our irrevocable letter of credit in your favor to guarantee the performance by [Name of Applicant] (hereinafter referred to as "the Applicant") of their obligations under the said agreement.

The total amount available under this guarantee shall be USD [Guarantee Amount] (United States Dollars [Amount in Words]), or its equivalent in any other freely convertible currency acceptable to the Beneficiary. This guarantee is valid until [Expiry Date].

This guarantee is subject to the following conditions:

1. The Beneficiary shall present a written demand for payment under this guarantee, duly signed by authorized representatives of the Beneficiary, stating that the Applicant has defaulted on their obligations under the agreement.
2. The demand for payment must be received by us on or before the expiry date of this guarantee.
3. The demand for payment must be accompanied by the following documents:
   • - Copy of the agreement between the Bank and the Beneficiary;
   • - Written statement signed by authorized representatives of the Beneficiary confirming that the Applicant has not fulfilled its obligations under the said agreement;
   • - Any other documents as specified in the agreement.
4. Upon receipt of a valid demand for payment, we undertake to pay the Beneficiary the amount claimed within [Number of Days] working days from the date of receipt of the demand.
5. Any discrepancies or disputes arising out of or in connection with this guarantee shall be subject to the jurisdiction of the courts in [Jurisdiction].
6. This guarantee is transferable, divisible, and assignable without the prior consent of the Applicant. The Beneficiary is allowed to assign rights and obligations under this guarantee.
7. This guarantee is governed by and construed in accordance with the laws of [Governing Law].

Please confirm your acceptance of this guarantee in writing by signing and returning the enclosed copy of this letter. We kindly request you to provide us with your correct bank account details to enable us to process any payments promptly.

If you have any questions or require further information, please do not hesitate to contact us. We look forward to providing you with our best service.

Yours faithfully,

[Authorised Signatory]

[Bank Name]

[Authorised Signatory Designation]

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