All Countries
Banking
Bank Guarantee And Performance Guarantee

Bank Guarantee And Performance Guarantee Template for Nigeria

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Bank Guarantee And Performance Guarantee

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Bank Guarantee And Performance Guarantee

"I need a Bank Guarantee and Performance Guarantee document for a construction project in Lagos, Nigeria, where my company requires a ₦100 million guarantee from First Bank Nigeria to secure a government infrastructure contract, with the guarantee period running until March 2025."

Celebrated by
Collaborations with
Investors
Document background
Bank Guarantees and Performance Guarantees are essential financial instruments in Nigerian commercial transactions, particularly in high-value contracts and projects where security of performance is crucial. These guarantees provide assurance to beneficiaries that financial obligations or performance commitments will be met, with a bank acting as guarantor. The document is used when a party requires security for performance or payment obligations, common in construction projects, government contracts, and international trade. The guarantee must comply with Nigerian banking laws, particularly BOFIA 2020 and CBN regulations, while also considering international banking practices. This document is crucial for risk mitigation in commercial transactions and is often required in tender processes, major contracts, and project finance arrangements.
Suggested Sections

1. Parties: Identification of the Guarantor Bank, the Principal (party requesting the guarantee), and the Beneficiary

2. Background: Context of the underlying transaction and purpose of the guarantee

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

4. Guarantee Amount: Specific amount of the guarantee and currency

5. Scope of Guarantee: Detailed description of what the guarantee covers and the obligations being guaranteed

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

7. Conditions for Demand: Specific conditions under which the beneficiary can make a demand under the guarantee

8. Demand Procedure: Process and requirements for making a valid demand under the guarantee

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

10. Bank's Rights and Obligations: Detailed outline of the guarantor bank's rights, obligations, and limitations

11. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

12. Notices: Process and addresses for serving notices under the guarantee

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Counter-Indemnity: Required when the principal provides indemnity to the bank against any payments made under the guarantee

2. Assignment Provisions: Include when transfer or assignment of guarantee rights is permitted

3. Force Majeure: Include when specific force majeure events might affect the guarantee obligations

4. Step-In Rights: Include for performance guarantees where the bank may have rights to step in and complete obligations

5. Reduction Clause: Include when the guarantee amount may be reduced progressively based on completion milestones

6. Multiple Beneficiaries: Include when there are multiple beneficiaries with specific rights and procedures

7. Language Provision: Include when the guarantee might be issued in multiple languages

8. Anti-Money Laundering Compliance: Include detailed AML provisions when required by the bank's compliance policies

Suggested Schedules

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

2. Underlying Contract Details: Summary or extract of the main contract being guaranteed

3. Authorization Documents: Corporate authorizations and board resolutions

4. Specimen Signatures: Authorized signatures for making and accepting demands

5. Bank's Standard Terms and Conditions: Standard terms applicable to all guarantees issued by the bank

6. Fee Schedule: Details of bank charges and fees related to the guarantee

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Advance Payment
Applicable Law
Banking Day
Beneficiary
Business Day
Claim
Counter-Guarantee
Demand
Effective Date
Event of Default
Expiry Date
Force Majeure
Guarantee Amount
Guarantee Period
Guaranteed Obligations
Guarantor
Guarantor Bank
Instrument
Letter of Demand
Maximum Liability
Nigerian Naira
Notice
Parties
Payment Currency
Performance Default
Principal
Principal Contract
Principal Debtor
Project
Secured Obligations
Security
Specified Documents
Stamp Duty
Supporting Documents
Underlying Contract
Valid Claim
Working Day
Clauses
Parties
Definitions
Interpretation
Guarantee
Duration
Payment Obligations
Demand Procedure
Reduction
Assignment
Representation and Warranties
Counter-Indemnity
Independent Obligation
Primary Obligation
Default Interest
Currency
Set-Off
Tax
Costs and Expenses
Force Majeure
Notices
Amendment
Waiver
Severability
Entire Agreement
Governing Law
Jurisdiction
Dispute Resolution
Confidentiality
Anti-Money Laundering
Compliance with Laws
Step-In Rights
Transfer
Multiple Beneficiaries
Termination
Extension
Stamp Duty
Language
Relevant Industries

Banking and Financial Services

Construction and Infrastructure

Oil and Gas

Manufacturing

International Trade

Government and Public Sector

Energy

Telecommunications

Real Estate Development

Mining

Defense Contracting

Transportation and Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Commercial

Procurement

Project Management

Credit

Operations

Corporate Secretariat

Business Development

Relevant Roles

Chief Financial Officer

Bank Manager

Contract Manager

Project Director

Legal Counsel

Risk Manager

Treasury Manager

Commercial Director

Procurement Manager

Business Development Manager

Company Secretary

Compliance Officer

Credit Risk Officer

Project Finance Manager

Operations Director

Industries
Banks and Other Financial Institutions Act (BOFIA) 2020: The primary legislation governing banking operations in Nigeria, including the issuance of guarantees by banks and financial institutions
Central Bank of Nigeria Act 2007: Establishes the regulatory framework for banking operations and financial instruments in Nigeria
Nigerian Contract Law: Governs the formation and enforcement of contracts, including guarantees, based on common law principles
Evidence Act 2011: Regulates the admissibility of evidence in Nigerian courts, relevant for enforcement of guarantees
UN Convention on Independent Guarantees and Stand-by Letters of Credit: International convention providing rules for international guarantee instruments, which influences Nigerian banking practice
CBN Prudential Guidelines 2010: Provides specific regulations for banks regarding the issuance of guarantees and risk management
Stamp Duties Act: Requires proper stamping of guarantee documents for them to be admissible in evidence in Nigerian courts
Money Laundering (Prohibition) Act 2011: Ensures compliance with anti-money laundering regulations in financial transactions including guarantees
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

Find the exact document you need

Business Loan Guarantee

A Nigerian law-governed guarantee agreement securing business loan obligations between a lender, borrower, and guarantor.

find out more

Performance Bond Guarantee

A Nigerian law-governed financial guarantee issued by a bank to secure a contractor's performance obligations, providing financial compensation to the beneficiary in case of default.

find out more

Unconditional Irrevocable Bank Guarantee

A Nigerian law-governed bank guarantee document providing unconditional and irrevocable payment assurance from a bank to a beneficiary upon valid demand.

find out more

Bank Guarantee Statement

A Nigerian law-governed financial instrument issued by a bank, providing an irrevocable payment guarantee to a beneficiary under specified conditions.

find out more

Business Bank Guarantee

A Nigerian law-governed bank guarantee document where a bank provides financial assurance for business obligations, subject to BOFIA 2020 and related regulations.

find out more

Deferred Bank Guarantee

A Nigerian law-governed bank guarantee document that provides for deferred payment obligations, ensuring compliance with CBN regulations and Nigerian banking laws.

find out more

Bank Guarantee And Performance Guarantee

Template for Bank and Performance Guarantees under Nigerian law, establishing terms for financial institutions' guarantee of payment or performance obligations.

find out more

Letter Of Credit Guarantee

A Nigerian law-governed banking guarantee that ensures payment under a Letter of Credit, providing additional security in international trade transactions.

find out more

Bank Guarantor Letter

A Nigerian law-governed bank guarantee document where a bank commits to pay a beneficiary if their client defaults on specified obligations.

find out more

Bank Endorsement Guarantee

A Nigerian law-governed financial instrument where a bank guarantees payment or performance on behalf of their client to a beneficiary.

find out more

Authorization Letter To Collect Bank Guarantee

A Nigerian legal document authorizing a designated representative to collect a bank guarantee on behalf of the guarantor, compliant with Nigerian banking laws.

find out more

Direct Bank Guarantee

A Nigerian law-governed bank guarantee where a bank directly commits to pay a specified sum to a beneficiary upon demand, subject to stated terms and conditions.

find out more

Standby Letter Of Credit For Lease

A Nigerian law-governed banking instrument that provides security for lease payment obligations, where a bank guarantees payment to a landlord in case of tenant default.

find out more

Bank To Bank Guarantee

A Nigerian law-governed bank guarantee agreement between financial institutions, establishing one bank's guarantee of specified obligations to another bank.

find out more

Unsecured Bank Guarantee

A Nigerian law-governed financial instrument where a bank provides an unconditional payment guarantee without requiring collateral from the principal debtor.

find out more

Unlimited Bank Guarantee

A Nigerian law-governed Unlimited Bank Guarantee providing unrestricted financial security from a bank to guarantee a principal's obligations to a beneficiary.

find out more

Standby Bank Guarantee

A Nigerian law-governed bank guarantee providing financial security for commercial transactions, payable upon demand if specified conditions are met.

find out more

Financial Guarantee And Performance Guarantee

A Nigerian law-governed guarantee document securing both financial obligations and performance requirements, providing dual protection for payment and performance commitments.

find out more

Drawdown Bank Guarantee

A Nigerian law-governed bank guarantee document establishing terms for guaranteed payments by a bank to a beneficiary upon specified conditions being met.

find out more

Bank Guarantee For Lost Bill Of Lading

A Nigerian law-governed bank guarantee that indemnifies shipping companies for releasing cargo without the original bill of lading.

find out more

Counter Standby Letter Of Credit

A Nigerian law-governed banking instrument that provides a secondary guarantee to support a primary Standby Letter of Credit, establishing inter-bank guarantee obligations and drawing conditions.

find out more

Standby Letter Of Credit And Bank Guarantee

A Nigerian law-governed financial security instrument combining Standby Letter of Credit and Bank Guarantee features, providing bank-backed payment assurance upon specified conditions.

find out more

Bank Guarantee Letter Of Credit

A Nigerian-law governed bank guarantee instrument providing payment security in international trade transactions, subject to Central Bank of Nigeria regulations and UCP 600.

find out more

Irrevocable And Unconditional Bank Guarantee

A Nigerian law-governed bank guarantee providing unconditional payment commitment upon first demand, creating an absolute obligation on the guarantor bank.

find out more

Letter Of Credit And Standby Letter Of Credit

A Nigerian law-governed banking instrument providing payment security in international trade, where a bank guarantees payment subject to specified conditions and document presentation.

find out more

Bank Credit Guarantee

A Nigerian law-governed agreement where a guarantor secures a borrower's obligations to a bank under a credit facility.

find out more

Bank Assurance Letter

A Nigerian bank-issued guarantee document that assures payment or performance of obligations, regulated under Nigerian banking laws and CBN guidelines.

find out more

Advance Performance Guarantee

A Nigerian law-governed financial guarantee issued by a bank to secure advance payments made to contractors, protecting the beneficiary against non-performance or default.

find out more

Bank Guarantee Cancellation Letter

A formal letter requesting the cancellation of a bank guarantee under Nigerian law, used when guarantee obligations are complete or no longer required.

find out more

Bank Guarantee Bond

A Nigerian law-governed financial instrument where a bank guarantees payment or performance on behalf of its client to a beneficiary.

find out more

Revolving Standby Letter Of Credit

A Nigerian law-governed Revolving Standby Letter of Credit establishing renewable financial security with automatic reinstatement provisions.

find out more

Open Ended Bank Guarantee

A Nigerian law-governed continuing bank guarantee document that provides an unconditional payment obligation from a bank to a beneficiary until explicitly cancelled.

find out more

Bid Bond Bank Guarantee

A Nigerian law-governed bank guarantee securing a bidder's obligation to honor their bid and execute the contract if selected as the winning bidder.

find out more

Bank Endorsement Letter

A formal banking document issued under Nigerian law that provides official bank confirmation or guarantee for specific financial transactions or arrangements.

find out more

Advance Payment Guarantee Letter

A Nigerian law-governed bank guarantee securing advance payments made to contractors, protecting the paying party against non-performance.

find out more

Revolving Bank Guarantee

A Nigerian law-governed financial instrument establishing a continuous bank guarantee facility that automatically reinstates after claims, subject to specified terms and local banking regulations.

find out more

Retention Bank Guarantee

A Nigerian law-governed bank guarantee securing retention money in construction/project contracts, providing security to employers while enabling contractors to receive full payment earlier.

find out more

Conditional Bank Guarantee

A Nigerian law-governed bank guarantee document where a bank commits to pay a specified sum upon fulfillment of predetermined conditions, subject to Nigerian banking regulations.

find out more

Bank Guarantee Performance Bond

A Nigerian law-governed financial instrument where a bank guarantees a contractor's performance obligations to a beneficiary, providing security through an unconditional payment commitment.

find out more

Standby Letter Of Credit

A Nigerian law-governed bank guarantee instrument that provides payment assurance to beneficiaries in case of default or non-performance by the applicant.

find out more

Cash Backed Bank Guarantee

A Nigerian law-governed bank guarantee document where the bank's obligation is secured by cash deposit from the applicant, providing financial security to the beneficiary.

find out more

Bank Counter Guarantee

A Nigerian law-governed financial instrument where one bank guarantees another bank's exposure under a primary guarantee, outlining terms and payment obligations.

find out more

Back To Back Bank Guarantee

A Nigerian law-governed agreement establishing a back-to-back bank guarantee arrangement between two banks and an applicant, compliant with local banking regulations.

find out more

Bid Bond Tender Guarantee

A Nigerian law-governed financial guarantee issued by a bank to secure a bidder's commitment in a tender process, protecting the project owner if the bidder fails to honor their bid.

find out more

Bank Letter Of Comfort

A Nigerian-law governed bank document providing assurance about a customer's financial standing without constituting a legally binding guarantee.

find out more

Performance Bank Guarantee

A Nigerian law-governed bank guarantee securing the performance obligations of a contractor/service provider, providing financial security to the beneficiary.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.