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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."
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
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
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
Expiry Date
Banking Day
Business Day
Demand
Principal
Beneficiary
Guarantor
Underlying Contract
Guarantee Period
Payment Date
Force Majeure Event
Maximum Liability
Permitted Transfer
Swiss Law
Original Guarantee
Supporting Documents
Authorized Representative
Guarantor's Office
Valid Demand
Counter-Guarantee
Governing Law
Effective Date
Guarantee Obligations
Notice
Payment Instructions
Reduction Amount
Security Interest
Specified Currency
Termination Date
Payment Obligations
Demand Requirements
Documentary Requirements
Reduction Provisions
Maximum Liability
Expiry and Termination
Assignment and Transfer
Force Majeure
Notices
Amendment
Representations and Warranties
Payment Terms
Currency Provisions
Governing Law
Jurisdiction
Dispute Resolution
Severability
Counter-Indemnity
Language
Electronic Communications
Bank's Rights and Obligations
Beneficiary's Rights and Obligations
Principal's Obligations
Enforcement
Partial Demands
Return of Guarantee Document
Costs and Expenses
Formal Requirements
Waiver
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
Legal
Finance
Treasury
Risk Management
Compliance
Commercial Operations
Project Management
Trade Finance
Corporate Banking
Credit Risk
International Business
Contract Administration
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
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