Cash Backed Bank Guarantee Template for Netherlands

The Cash Backed Bank Guarantee is a crucial financial instrument used in various commercial transactions under Dutch law where a party requires a bank guarantee but needs to provide cash collateral as security. This document is particularly relevant in situations requiring performance guarantees, bid bonds, advance payment guarantees, or other forms of financial security. It's structured to comply with Dutch civil law requirements and financial regulations, including the Dutch Financial Supervision Act and European banking regulations. The document comprehensively addresses the tripartite relationship between the bank (guarantor), the applicant (providing cash backing), and the beneficiary, detailing the mechanism for cash deposit, conditions for calling on the guarantee, and release of security. It's especially useful in international trade, construction projects, and other commercial transactions where parties seek a secure, regulated form of financial guarantee.

1. Parties: Identification of the Bank (Guarantor), the Applicant (providing cash backing), and the Beneficiary

2. Background: Context of the guarantee, underlying transaction necessitating the guarantee, and relationship between parties

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

4. Cash Deposit: Details of the cash backing amount, deposit requirements, and account specifications

5. Guarantee Terms: Scope, amount, and duration of the guarantee

6. Conditions for Payment: Circumstances and procedure under which the guarantee can be called upon

7. Rights and Obligations: Respective rights and obligations of all parties regarding the guarantee and cash backing

8. Bank's Security Rights: Bank's rights over the cash deposit and set-off rights

9. Fees and Costs: Bank's fees, charges, and cost allocation

10. Representations and Warranties: Standard representations and warranties from all parties

11. Term and Termination: Duration of the guarantee and conditions for termination

12. Return of Cash Deposit: Conditions and process for returning the cash deposit

13. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction details