All Countries
Commercial
Performance Security Bank Guarantee

Performance Security Bank Guarantee Template for Australia

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Performance Security Bank Guarantee

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Performance Security Bank Guarantee

"I need a Performance Security Bank Guarantee for an infrastructure development project in Melbourne, with ANZ Bank as guarantor for a contract value of AUD 5 million, expiring on March 15, 2025, with quarterly reduction provisions as construction milestones are achieved."

Celebrated by
Collaborations with
Investors
Document background
The Performance Security Bank Guarantee is a critical financial security instrument in Australian commercial transactions, particularly in construction and infrastructure projects. This document is typically required when a contractor undertakes significant projects where the principal needs security against non-performance. The guarantee represents an unconditional commitment from a bank to pay a specified sum to the beneficiary upon demand if the contractor fails to meet their contractual obligations. It operates under Australian banking and contract law frameworks, providing a robust mechanism for risk mitigation. The document includes specific details about the guaranteed amount, validity period, demand requirements, and enforcement mechanisms, while ensuring compliance with Australian banking regulations and financial services laws.
Suggested Sections

1. Bank Details and Reference: Identity and details of the issuing bank, including branch and reference number

2. Date: Date of issuance of the bank guarantee

3. Beneficiary Details: Full legal name and address of the party in whose favor the guarantee is issued

4. Applicant Details: Full legal name and address of the party requesting the guarantee

5. Guarantee Amount: The maximum amount guaranteed, expressed in both figures and words

6. Underlying Relationship: Reference to the underlying contract or relationship between the Applicant and Beneficiary

7. Guarantee Obligations: Clear statement of the bank's unconditional obligation to pay upon compliant demand

8. Demand Requirements: Specific requirements and format for making a valid demand under the guarantee

9. Expiry Provisions: Expiry date or conditions and claim submission deadline

10. Reduction Provisions: Terms for any reduction in the guarantee amount over time

11. Governing Law and Jurisdiction: Specification of Australian law as governing law and relevant jurisdiction

12. Assignment Provisions: Terms regarding transferability of the guarantee

13. Bank's Execution: Authorized signatures and execution block for the bank

Optional Sections

1. Multiple Beneficiaries: Additional provisions when the guarantee is issued in favor of multiple beneficiaries

2. Partial Drawings: Terms allowing for multiple partial drawings up to the maximum guarantee amount

3. Extension Mechanism: Provisions for extending the validity period of the guarantee

4. Counter-Guarantee Reference: Reference to any counter-guarantee arrangements when involving multiple banks

5. Language Provisions: Required when the guarantee might be used internationally, specifying the prevailing language

6. Electronic Presentation: Terms for accepting electronic demands or presentations

Suggested Schedules

1. Form of Demand: Template for the prescribed format of a demand under the guarantee

2. Authorized Signatories: List of authorized signatories for the bank and their specimen signatures

3. Supporting Documents: List of any required supporting documents to be presented with a demand

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Construction

Infrastructure

Mining

Energy

Real Estate Development

Engineering

Manufacturing

Government and Public Sector

Transportation

Telecommunications

Banking and Financial Services

Relevant Teams

Legal

Finance

Treasury

Commercial

Procurement

Risk Management

Operations

Project Management

Contract Administration

Business Development

Relevant Roles

Project Manager

Contract Manager

Commercial Manager

Legal Counsel

Finance Manager

Treasury Manager

Bank Relationship Manager

Chief Financial Officer

Risk Manager

Procurement Manager

Construction Manager

Company Secretary

Business Development Manager

Operations Director

Industries
Banking Act 1959 (Cth): Primary legislation governing banking activities in Australia, including the issuance of bank guarantees and regulatory requirements for authorized deposit-taking institutions (ADIs)
Personal Property Securities Act 2009 (Cth): Governs the creation, registration and enforcement of security interests in personal property, which may be relevant if the bank guarantee is securing personal property
Australian Securities and Investments Commission Act 2001: Regulates financial services and products, including bank guarantees, and provides consumer protection provisions
Corporations Act 2001 (Cth): Relevant for corporate beneficiaries and corporate providers of bank guarantees, governing corporate powers and responsibilities
Contract Law - Australian Common Law: Fundamental principles of contract formation, enforcement, and interpretation that apply to bank guarantees
Competition and Consumer Act 2010 (Cth): Contains the Australian Consumer Law which may be relevant if the guarantee involves consumer transactions or unfair contract terms
Anti-Money Laundering and Counter-Terrorism Financing Act 2006: Relevant for identity verification and reporting requirements in issuing bank guarantees
International Standby Practices (ISP98): While not legislation, these are internationally recognized rules often incorporated into bank guarantees involving international parties
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Parent Company Guarantee Performance Bond

An Australian law-governed guarantee instrument where a parent company provides performance security for its subsidiary's contractual obligations, enforceable as a primary obligation.

find out more

Performance And Financial Bank Guarantee

An Australian-law governed bank guarantee document securing performance or financial obligations, providing beneficiaries with immediate access to guaranteed funds upon valid demand.

find out more

Performance Security Bank Guarantee

An Australian law-governed bank guarantee providing financial security for a beneficiary against a contractor's non-performance of contractual obligations.

find out more

Lease Performance Bond

An Australian-law governed security instrument issued by a financial institution guaranteeing a tenant's lease obligations to their landlord.

find out more

Corporate Performance Guarantee

An Australian law-governed guarantee where a company guarantees the performance obligations of another entity to a third party beneficiary.

find out more

Advance Performance Guarantee

An Australian law-governed financial guarantee document where a bank ensures a contractor's performance obligations and secures advance payments made by the project owner.

find out more

Contract Performance Guarantee

An Australian law-governed guarantee instrument where a guarantor ensures a principal's contract performance obligations to a beneficiary through financial security.

find out more

Bid Bond Bank Guarantee

An Australian law-governed bank guarantee securing a bidder's obligations in a tender process, providing financial security to the project owner.

find out more

Performance Guarantee Bond

An Australian law-governed financial instrument where a guarantor provides security for a principal's performance obligations to a beneficiary.

find out more

Performance Bank Guarantee

An Australian law-governed bank guarantee securing contractual performance obligations, where a bank provides an unconditional undertaking to pay a specified sum upon demand if contractual obligations are not met.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.