A bank performance guarantee (also known as a bank guarantee or a surety bond) is a written document issued by a bank to guarantee the fulfillment of a contractual obligation between two parties. In this article, we present a sample bank performance guarantee in English.
Here is a sample bank performance guarantee letter:
[Your Company's Letterhead]
[Date]
[Beneficiary Name and Address]
[Project Name and Description]
[Contract Number or Agreement Reference]
Dear [Title and Beneficiary's Name],
This letter serves as our irrevocable bank performance guarantee (hereinafter referred to as "the Guarantee") in favor of you, for an amount not exceeding [Guarantee Amount in words] ([Guarantee Amount in numbers]) [Currency]. We undertake to pay you any sum or sums up to the above-mentioned amount upon your first written demand, following any default on the part of [Our Company Name] (hereinafter referred to as "the Guarantor") in meeting our obligations under the contract referenced above.
This Guarantee shall be valid until [Expiry Date] and may only be extended or amended with the prior written consent of the beneficiary. Furthermore, any claims or demands under the Guarantee shall be presented to us at the specified address no later than [Claim Expiry Date] to be considered valid.
The liability of the Guarantor under this Guarantee shall not be affected by any disputes or disagreements arising between the principal parties of the contract mentioned above.
This Guarantee is subject to the Uniform Rules for Demand Guarantees (URDG) published by the International Chamber of Commerce (ICC), Publication No. 758, unless otherwise stated herein.
This guarantee shall be governed by and construed in accordance with the laws of [Applicable Jurisdiction].
Please acknowledge your acceptance of this Guarantee by signing below and returning a copy to us.
Yours faithfully,
[Authorized Signatory]
[Guarantor Name]
[Address]
[Contact Details]
The above sample bank performance guarantee letter provides a template for businesses and individuals involved in contracts requiring such guarantees. It is important to customize the letter based on specific agreement details and consult legal counsel if necessary.
