Bank Guarantee Bond Template for Switzerland

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Key Requirements PROMPT example:

Bank Guarantee Bond

"I need a Bank Guarantee Bond for a construction project in Geneva, where UBS will act as guarantor for CHF 5 million to secure our performance obligations, with the guarantee valid until March 31, 2025."

Document background
The Bank Guarantee Bond is a crucial financial security instrument commonly used in commercial transactions, construction projects, and international trade. Under Swiss law, this document represents an independent guarantee commitment from a bank to pay a specified amount to a beneficiary upon meeting predetermined conditions. The guarantee typically supports underlying commercial contracts, tender submissions, or performance obligations. Swiss law, particularly through the Code of Obligations and Banking Act, provides a robust legal framework for such guarantees, making them highly regarded in international commerce. The document includes essential details such as the guarantee amount, validity period, conditions for demand, and payment terms, while ensuring compliance with Swiss banking regulations and international standards.
Suggested Sections

1. Parties: Identification of the Bank (Guarantor), the Beneficiary, and the Principal (the party whose obligations are being guaranteed)

2. Background: Context of the guarantee, including reference to the underlying transaction or relationship between Principal and Beneficiary

3. Definitions: Key terms used in the guarantee bond, including 'Guarantee Amount', 'Expiry Date', and specific defined terms related to the underlying transaction

4. Guarantee: Core guarantee provision specifying the amount, currency, and nature of the bank's commitment

5. Conditions for Payment: Specific requirements and documentation needed for making a demand under the guarantee

6. Form of Demand: Required format and content of any demand made under the guarantee

7. Payment Terms: Timeframe and method for payment upon valid demand

8. Expiry: Terms regarding the expiry date and conditions for guarantee termination

9. Reduction Clause: Provisions for any reduction in the guarantee amount over time

10. Governing Law and Jurisdiction: Explicit statement of Swiss law governance and jurisdiction of Swiss courts

11. Notices: Communication requirements and contact details for all parties

Optional Sections

1. Transfer and Assignment: Include when the guarantee needs to be transferable or when assignment rights need to be specifically addressed

2. Counter-Indemnity: Include when there's a separate counter-indemnity arrangement between the bank and the Principal

3. Partial Demands: Include when multiple partial demands are to be permitted under the guarantee

4. Force Majeure: Include when specific force majeure provisions are required, particularly for international guarantees

5. Language: Include when the guarantee might be used internationally or when translations may be required

6. Bank's Maximum Liability: Include when need to specify caps on liability beyond the basic guarantee amount

7. Return of Guarantee: Include when physical return of the guarantee document is required for cancellation

Suggested Schedules

1. Form of Demand: Template for making a valid demand under the guarantee

2. Underlying Contract Details: Key details of the contract or obligation being guaranteed

3. Authorized Signatories: List of persons authorized to make demands under the guarantee

4. Payment Instructions: Detailed banking information for payment processing

5. Required Documents: List of supporting documents required for making a valid 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

Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Construction and Infrastructure

International Trade

Real Estate

Manufacturing

Energy and Utilities

Telecommunications

Mining and Resources

Retail and Consumer Goods

Transportation and Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Commercial Operations

Project Management

Trade Finance

Corporate Banking

Credit Risk

International Business

Contract Administration

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Legal Counsel

Contract Manager

Risk Manager

Commercial Director

Project Manager

Banking Relationship Manager

Compliance Officer

Trade Finance Manager

Corporate Finance Manager

Credit Risk Officer

Senior Legal Advisor

Business Development Director

Industries
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

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