Bank Guarantee Sample in English

A bank guarantee is a written promise issued by a bank to guarantee the performance of a particular obligation. It serves as a commitment from the bank to pay a specified amount of money in case the party who has received the bank guarantee fails to fulfill their obligations.

Here is an example of a bank guarantee letter:

Date: [Date of issuing the bank guarantee]

To: [Beneficiary's Name and Address]

Subject: Bank Guarantee No. [Guarantee Number]

Dear Sir/Madam,

We, [Name of Issuing Bank], located at [Address of Issuing Bank], hereby issue this bank guarantee in favor of [Beneficiary's Name]. This guarantee is given in support of our customer, [Customer's Name], who has entered into a contract with you for [Description of Contract/Project].

This bank guarantee is valid from the date of issuance until [Expiry Date], unless valid claims are made within that period.

Under this bank guarantee, we undertake to unconditionally pay you any sum or sums up to the maximum amount stated herein, without requiring any proof or reference to [Customer's Name]. These payments will be made immediately upon your first written demand, stating that the beneficiary has suffered a loss due to the default or non-performance of [Customer's Name] with respect to the terms and conditions of the above-mentioned contract. Such demand should be accompanied by a signed copy of your statement clearly indicating the amount claimed.

The maximum amount payable under this bank guarantee is [Amount in Words (Currency)].

Please note that any demand made under this bank guarantee must be presented to us before the expiry date stated herein, as any claims submitted after that date will not be entertained.

This bank guarantee is subject to the Uniform Rules for Demand Guarantees (URDG 758).

For and on behalf of
[Name of Issuing Bank]

Authorized Signatory

Issuer's Stamp/Seal

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Please note that this is a sample bank guarantee letter and should be used for reference purposes only. The actual format and content may vary depending on the specific requirements of each bank and the transaction.

It is crucial to consult with a professional and legal advisor to ensure that the bank guarantee document complies with all applicable regulations and contractual obligations.

Remember to carefully review the terms and conditions of the bank guarantee before signing or accepting it, as it represents a significant financial commitment.