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Advance Payment Guarantee Letter
"I need an Advance Payment Guarantee Letter for a Singapore construction project where my company is making a 30% advance payment of SGD 2.5 million to a contractor, with the guarantee to be valid until March 2025."
1. Bank Details: Full name, address, and registration details of the issuing bank
2. Beneficiary Details: Full name, address, and registration details of the party receiving the guarantee
3. Principal Details: Full name, address, and registration details of the party requesting the guarantee
4. Guarantee Amount: Specific amount being guaranteed, expressed in both numbers and words, including currency
5. Underlying Contract Reference: Details of the contract or agreement for which advance payment is being made, including date and reference number
6. Validity Period: Explicit start and end dates of the guarantee, including conditions for expiry
7. Claim Conditions: Specific conditions and procedures under which the guarantee can be called upon
1. Reduction Clause: Terms and conditions for gradual reduction of guarantee amount over time or based on project milestones
2. Assignment Provisions: Terms regarding the transfer or assignment of guarantee rights to third parties
3. Dispute Resolution: Specific procedures and jurisdiction for handling disputes related to the guarantee
1. Form of Demand: Standard template for making a formal claim under the guarantee
2. Copy of Underlying Contract: Authenticated copy of the contract or agreement forming the basis for the advance payment
3. Payment Schedule: Detailed schedule showing the timeline and amounts for reduction in guarantee value, if applicable
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