Performance Bank Guarantee Template for Switzerland

The Performance Bank Guarantee is a crucial financial security instrument commonly used in commercial and construction projects in Switzerland and international transactions governed by Swiss law. It is typically required when one party (the principal) needs to provide performance security to another party (the beneficiary) in relation to contractual obligations. The guarantee is issued by a Swiss bank or a foreign bank subject to Swiss law, and ensures that the beneficiary will receive financial compensation up to the guaranteed amount if the principal fails to perform their contractual obligations. The document must comply with Swiss banking regulations and the Swiss Code of Obligations, particularly articles relating to guarantees and sureties. Performance Bank Guarantees are especially common in large-scale projects, public tenders, and international trade transactions where Swiss law is chosen for its reliability and well-established legal framework.

1. Bank Details and Reference: Full details of the issuing bank, guarantee reference number, and date

2. Beneficiary Details: Complete name and address of the party in whose favor the guarantee is issued

3. Principal Details: Complete name and address of the party on whose behalf the guarantee is issued

4. Underlying Transaction: Reference to the main contract or obligation being guaranteed, including contract reference numbers and dates

5. Guarantee Amount: The maximum amount of the guarantee expressed in numbers and words, including currency

6. Guarantee Scope: Clear description of the performance obligations being guaranteed and the conditions under which the guarantee can be called

7. Validity Period: Clear statement of when the guarantee becomes effective and when it expires

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

9. Payment Terms: Timeline and method for payment upon receipt of a valid demand

10. Governing Law and Jurisdiction: Explicit reference to Swiss law and jurisdiction

11. Bank's Signature Block: Space for authorized signatories of the bank