Bank Guarantee (BG) English Template

A bank guarantee is a type of financial instrument that is issued by a bank on behalf of a customer, which serves as a guarantee of payment for a third-party. It is commonly used in international trade and other business transactions where parties are not familiar with each other, but want to ensure that payments will be made on time and to the correct amount.

The following is an example of a bank guarantee template that can be used by international businesses:

[BANK LETTERHEAD]

BANK GUARANTEE

[Date]

TO: [Beneficiary Name]

[Beneficiary Address]

Dear Sirs,

We, [Bank Name], hereby issue this bank guarantee in favor of [Beneficiary Name] (hereinafter referred to as the “Beneficiary”) to facilitate [Description and purpose of the transaction].

The undersigned irrevocably guarantees to pay the Beneficiary any amount up to [Amount of Guarantee] Dollars ([Written amount of Guarantee] USD), upon presentation of a written demand for payment from the Beneficiary stating that the customer of the undersigned has failed to fulfill his/her/their obligations under the [Contract or Agreement] dated [Date of Contract or Agreement] (hereinafter referred to as the “Contract or Agreement”).

This bank guarantee shall remain in full force and effect until [Date or event of expiration], and shall automatically expire if not claimed before the expiration date or event.

Any claim made under this bank guarantee must be submitted to our [City and Country] office no later than [Date of Validity], together with the original demand for payment, confirming the failure of the customer to fulfill his/her/their obligations under the Contract or Agreement.

The undersigned hereby undertakes not to revoke or cancel this bank guarantee without the prior written consent of the Beneficiary.

This bank guarantee shall be governed by and construed in accordance with the laws of [Governing Jurisdiction], and any disputes arising out of or in connection with this bank guarantee shall be subject to the exclusive jurisdiction of the courts of [Governing Jurisdiction].

Yours faithfully,

[Authorized Signature]

[Bank Name]

[Bank Address]