Bank Guarantee Discharge Letter Template for New Zealand

The Bank Guarantee Discharge Letter is a critical document used when a bank guarantee is no longer required or its purpose has been fulfilled under New Zealand law. This document is typically required when the underlying obligation secured by the bank guarantee has been satisfied, the project or transaction has been completed, or the parties have agreed to terminate the guarantee arrangement. The letter must comply with New Zealand banking regulations and contract law requirements, particularly the Contract and Commercial Law Act 2017 and Banking (Prudential Supervision) Act 1989. It should clearly identify the specific bank guarantee being discharged, include all necessary reference numbers and dates, and contain explicit discharge language that effectively releases the bank from its obligations. The document serves as crucial evidence of the termination of the bank's liability and the formal closure of the guarantee arrangement.

1. Letterhead and Date: Bank's letterhead and current date

2. Addressee Details: Full name and address of the beneficiary of the bank guarantee

3. Reference Information: Bank guarantee number, date of issue, and any other relevant reference numbers

4. Guarantee Identification: Clear identification of the specific bank guarantee(s) being discharged, including amount and purpose

5. Discharge Statement: Formal statement of discharge releasing the bank from all obligations under the guarantee

6. Effective Date: Specification of when the discharge takes effect

7. Return of Original Guarantee: Request for or acknowledgment of the return of the original guarantee document

8. Authorization: Statement of authority to discharge the guarantee

9. Signature Block: Space for authorized signatory's name, title, and signature