Performance Bank Guarantee Sample (English Version)

A Performance Bank Guarantee is a critical tool used in business transactions to ensure that contractual obligations are met successfully. This document acts as a guarantee from the bank to the beneficiary, assuring them that the terms and conditions of a contract will be fulfilled by the applicant. Here is a sample format of a Performance Bank Guarantee:

[Bank Name and Address]

[Date]

[Beneficiary Name and Address]

Dear Sir/Madam,

Subject: Performance Bank Guarantee

We, [Bank Name], a reputable financial institution established and operating under the laws of [Country], hereby issue this Performance Bank Guarantee in favor of [Beneficiary Name] (hereinafter referred to as the Beneficiary) in accordance with your request and instructions.

1. The name and address of our customer (the Applicant) for whom this Guarantee is being issued are as follows:

[Applicant Name]

[Applicant Address]

2. The name and address of the project or contract, for which this Guarantee is being issued, are as follows:

[Project/Contract Name]

[Project/Contract Address]

3. The nature and scope of the project/contract for which this Guarantee is being issued are as follows:

[Brief description of the project/contract]

4. The amount for which this Guarantee is being issued is [Currency] [Amount in Words] ([Amount in Numbers]), and will be valid until [Expiry Date].

5. This Guarantee is subject to the following terms and conditions:

a. The Guarantee shall become effective upon the Beneficiary's written notice of default by the Applicant in fulfilling their obligations under the contract. Such notice shall include a detailed statement of the default and evidence supporting the default claim.

b. The maximum liability under this Guarantee is limited to the Guarantee amount specified in clause 4 above.

c. Any claim under this Guarantee must be received by us in writing before the expiry date and within [Number of Days] days from the date the Beneficiary becomes aware of the default.

d. Our liability under this Guarantee shall be discharged upon receipt of a written statement from the Beneficiary confirming the satisfactory fulfillment of the contractual obligations by the Applicant.

e. This Guarantee shall not be transferable or assignable without our prior written consent.

6. This Guarantee shall be governed by and interpreted in accordance with the laws of [Country] and any disputes arising out of or in connection with this Guarantee shall be subject to the exclusive jurisdiction of the courts of [Country].

Please acknowledge your acceptance of this Guarantee by signing and returning a copy of this letter to us.

Yours faithfully,

[Bank Representative Name]

[Bank Representative Designation]

[Bank Name]