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Contra Bank Guarantee
"Need a Contra Bank Guarantee document for our Singapore subsidiary where HSBC Singapore will be the counter-guarantor for a USD 5 million guarantee issued by Bank of China, with validity until March 2025, covering a large infrastructure project in Malaysia."
1. Parties: Identification of the guarantor bank, counter-guarantor bank, and beneficiary
2. Background: Context of the underlying transaction and purpose of the contra guarantee
3. Definitions: Key terms used throughout the document
4. Guarantee Amount: Specified amount of the guarantee and currency
5. Duration and Expiry: Validity period and conditions for expiry
6. Demand Requirements: Conditions and process for making claims
7. Counter-Indemnity: Terms of reimbursement between the banks
1. Governing Law and Jurisdiction: Specific jurisdiction clauses if different from Singapore - use when parties are from different jurisdictions
2. Language: Governing language of the guarantee - use when dealing with international parties
3. Force Majeure: Provisions for unforeseen circumstances - use in high-risk transactions or jurisdictions
1. Form of Demand: Template for making claims under the guarantee
2. Supporting Documents: List of required documents for claims
3. Fee Schedule: Details of banking charges and fees
4. Communication Procedures: Protocols for notices and communications between parties
Authors
Counter-Guarantor Bank
Principal Guarantee
Contra Guarantee
Beneficiary
Principal/Applicant
Guarantee Amount
Expiry Date
Demand
Business Day
Counter-Indemnity
Claim Notice
Supporting Documents
Banking Day
Force Majeure Event
Guarantee Period
Effective Date
Bank Charges
Governing Law
Maximum Liability
Payment Obligation
Enforcement Event
Default Event
Notice
Authorized Signatory
SWIFT Message
Documentary Requirements
Reimbursement Obligation
Extension Period
Termination Event
Amount and Currency
Duration and Validity
Demand and Payment
Counter-Indemnity
Reimbursement
Documentary Requirements
Fees and Charges
Representations and Warranties
Communication Methods
Force Majeure
Assignment and Transfer
Amendments
Notices
Default Events
Termination
Governing Law
Jurisdiction
Dispute Resolution
Confidentiality
Severability
Extension and Reduction
Language
Waiver
Entire Agreement
Bank Rights and Obligations
Compliance with Laws
Set-Off Rights
Electronic Communications
Counterparts
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