Bank Guarantee For Lease Template for Ireland

The Bank Guarantee For Lease is commonly used in Irish commercial property transactions as an alternative to cash deposits, particularly in high-value commercial leases. It provides landlords with security while allowing tenants to maintain liquidity by not tying up large sums in rental deposits. The guarantee typically covers rent, service charges, and other tenant obligations under the lease, with the bank agreeing to pay up to a specified maximum amount upon valid demand. This document must comply with Irish banking regulations, property law, and consumer protection legislation, making it essential to include specific provisions regarding demand mechanisms, payment terms, and the scope of guaranteed obligations. The guarantee's duration usually aligns with the lease term or contains specific expiry provisions.

1. Parties: Identification of the Bank (Guarantor), the Landlord (Beneficiary), and reference to the Tenant (Principal Debtor)

2. Background: Context of the guarantee, including reference to the underlying lease agreement and the bank's agreement to provide the guarantee

3. Definitions: Key terms used in the guarantee, including 'Guaranteed Obligations', 'Lease', 'Maximum Guaranteed Amount' and other relevant terms

4. Guarantee and Indemnity: Core guarantee provisions, including the bank's undertaking to pay and scope of the guarantee

5. Maximum Liability: Specification of the maximum amount the bank guarantees under the document

6. Duration and Validity: Term of the guarantee, including start date and expiry conditions

7. Demand Requirements: Process and formalities for making a valid demand under the guarantee

8. Payment Terms: Timing and method of payment following a valid demand

9. Bank's Rights and Obligations: Specific provisions regarding the bank's position, including right to discharge obligations

10. Governing Law and Jurisdiction: Confirmation of Irish law as governing law and submission to Irish courts