Bank Guarantee Sample
A bank guarantee is a type of guarantee provided by a bank on behalf of its customers, which serves as a promise to pay a specified amount of money in the event that the customer fails to fulfill a contractual obligation. Bank guarantees are commonly used in international trade transactions, construction projects, and other business activities.
Here is a sample bank guarantee letter:
[Bank Name]
[Bank Address]
[Bank City, State ZIP]
[Date]
Guarantee No: [Guarantee Number]
Subject: Bank Guarantee for [Customer Name]
To: [Beneficiary Name]
[Beneficiary Address]
[Beneficiary City, State ZIP]
Dear Sir/Madam,
We, [Bank Name], hereby issue this bank guarantee in favor of [Beneficiary Name] up to the amount of [Guarantee Amount] as per your request dated [Date of Request]. This bank guarantee is valid for a period of [Guarantee Period] from the date of issue.
In the event that [Customer Name] fails to fulfill their obligations as stated in the underlying contract [Contract Number], we undertake to pay you the guaranteed amount upon receipt of your first written demand and without any objections or delays. The demand should be made in writing and should clearly state that the demand is being made under the terms of this bank guarantee.
This bank guarantee is subject to the Uniform Rules for Demand Guarantees (URDG) published by the International Chamber of Commerce (ICC) Publication No. [URDG Publication Number].
This bank guarantee is irrevocable and shall remain valid and in full force until the expiry date mentioned above or until we have received written instructions from [Beneficiary Name] for its cancellation, accompanied by our prior written consent.
Yours faithfully,
[Authorized Signatory]
[Bank Name]
Note: This is a sample bank guarantee letter and should be used for informational purposes only. It is recommended to seek legal advice or consult with a professional before drafting any bank guarantee.
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