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Bank Guarantee
[Date]
Re: Letter of Guarantee
US $ [________]
Dear Sirs:
The
[Name of Bank] (the "Bank"), with registered offices at [Address]
through its undersigned representative, hereby confirms that it is guarantor and
main paying entity for [Name of Contractor], located at [Address], up to a limit
of U.S. [$
(______)], as a guarantee (“Guarantee”) to ensure full and complete performance
of Contract No. [
] (the "XYZ” Contract).
The
Bank undertakes, with due regard for the limit stipulated above, to comply
within 24 (twenty-four) hours with any requests for any payment covered by the
said Guarantee, if demanded by [Name of ABC Entity] (“ABC”), without complaint,
withholding or debarment or filing of administrative or court actions or appeals
of any kind.
The
Bank furthermore pledges itself to pay all the expenses of ABC, whether of a
legal nature or not, in the event ABC is forced to go to arbitration or court to
compel compliance with any commitment undertaken by [Name of Contractor] ("Party
Guaranteed").
In
the event any dissolution, liquidation, bankruptcy, reorganization,
receivership, assignment for the benefit of creditors, debt rearrangements or
other proceeding under any bankruptcy law or proceeding or insolvency law or
procedure instituted by or against the Party Guaranteed, this Guarantee at the
option of ABC, immediately shall become due and payable from the Bank.
The Bank hereby (1) agrees to any modifications of any terms or conditions of
the XYZ Contract and/or to any extensions or renewals of the time for
performance by the Party Guaranteed; that it shall not be necessary for ABC to
proceed first against the Party Guaranteed or any other security or guarantor
before proceeding against the Bank and that no release of any other guarantor,
whether by operation of law or by any act of ABC, with or without notice to the
Bank, shall release the Bank from its obligation hereunder; (2) waives notice of
any election, acceptance, demand, protest, release, notice of protest, and (3)
agrees, if this Guarantee is not honored by the Bank in accordance with its
terms, to pay, in addition to all other sums of money due, all costs of
collection including any and all costs of suit and ABC’s legal fees therefore.
Furthermore, the Bank's liability hereunder shall in no way be invalidated,
affected or impaired by any of the following (any one or all of which may be
done or omitted by ABC without notice to anyone), namely: (i) any acceptance by
ABC of any security or collateral for, or other guarantors of the obligations of
the Party Guaranteed; (ii) any compromise, settlement, surrender, |
Instantly
