Performance Bank Guarantee Sample

A performance bank guarantee (PBG) is a financial instrument issued by a bank to ensure that a party fulfills its contractual obligations. This guarantee provides the beneficiary with assurance that if the party fails to perform as per the agreed terms and conditions, the bank will compensate the beneficiary for any loss incurred.

Below is an example of a performance bank guarantee in English:

Performance Bank Guarantee

Bank: [Name of Issuing Bank]

Date of Issue: [Date]

Beneficiary: [Name of Beneficiary]

Guarantee Number: [Number]

Validity: [Start Date] - [End Date]

Amount: [Insert Amount in Words and Numbers]

Effective Performance Guarantor: [Name of Party Being Guaranteed]

Scope of Guarantees: This guarantee is issued as security for the performance by the Effective Performance Guarantor under the contract signed between the Effective Performance Guarantor and the Beneficiary.

Beneficiary's Rights: In case of non-performance or breach of contract by the Effective Performance Guarantor, the Beneficiary has the right to make a direct claim against the bank for compensating any loss suffered.

Presentation of Claim: To exercise this guarantee, the Beneficiary shall submit a written claim along with all supporting documents proving the non-performance or breach of contract within [Number of Days] days from the date of occurrence.

Disclaimer Clause: The bank assumes no liability or responsibility for the performance or non-performance of the Effective Performance Guarantor or any disputes arising from the contract between the Effective Performance Guarantor and the Beneficiary.

Governing Law: This guarantee is governed by and construed in accordance with the laws of [Country].

This sample is for informational purposes only. The terms and conditions, as well as the format, may vary depending on the specific requirements of the parties involved.