Assurance Of Support Bank Guarantee Template for Hong Kong

The Assurance of Support Bank Guarantee is a crucial document used in Hong Kong when financial security is required for immigration or residency purposes. It is commonly required when sponsors (individuals or businesses) need to demonstrate their financial capacity to support visa applicants. The document represents a bank's legally binding commitment to provide financial assurance to a government department, typically the Immigration Authority. The guarantee amount is set based on the specific visa category and duration of stay. This document type must comply with Hong Kong's Banking Ordinance and Immigration regulations, and typically includes specific provisions for activation, payment mechanics, and release conditions. It serves as a risk mitigation tool for the government while providing a structured way for sponsors to meet their financial obligations without immediately tying up their capital.

1. Parties: Identifies all parties to the guarantee: the Bank (Guarantor), the Account Holder (Principal), and the Beneficiary

2. Background: Explains the context of the guarantee, including the underlying relationship and purpose of the assurance of support

3. Definitions: Defines key terms used throughout the guarantee document

4. Guarantee Amount: Specifies the maximum amount of the bank guarantee and any applicable currency considerations

5. Duration of Guarantee: Specifies the commencement date and expiry date or conditions of the guarantee

6. Bank's Undertaking: Details the bank's obligations and commitment under the guarantee

7. Conditions for Payment: Specifies the circumstances and procedures under which the guarantee can be called upon

8. Payment Mechanics: Details how payments under the guarantee will be processed and timing requirements

9. Account Holder's Obligations: Outlines the responsibilities and obligations of the account holder

10. Reduction and Release: Specifies conditions under which the guarantee amount may be reduced or the guarantee released

11. Governing Law and Jurisdiction: Specifies Hong Kong as the governing law and jurisdiction for dispute resolution

12. Execution: Signature blocks and execution formalities for all parties