Guaranty Fee Agreement Template for Singapore

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Key Requirements PROMPT example:

Guaranty Fee Agreement

"Need a Guaranty Fee Agreement for our Singapore subsidiary acting as guarantor to our Malaysian partner, with a monthly fee of 0.5% of the guaranteed amount and payment terms in Singapore Dollars, to be effective from March 1, 2025."

Document background
The Guaranty Fee Agreement is essential in situations where one party provides a guarantee or security for another's obligations in exchange for a fee. This document, governed by Singapore law, establishes the commercial relationship between the guarantor and the beneficiary, detailing the fee structure, payment terms, and related obligations. It's commonly used in financial transactions, property developments, and international trade where guarantees are required for business operations. The agreement ensures clarity on fee calculations, payment schedules, and the rights and obligations of all parties involved.
Suggested Sections

1. Parties: Identification of the guarantor, beneficiary, and principal debtor

2. Background: Context of the guarantee arrangement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Guarantee Fee: Specification of fee amount, calculation method, and payment terms

5. Payment Terms: Timeline and method of fee payment

6. Duration: Term of the agreement and renewal provisions

7. Termination: Circumstances and process for termination

8. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Tax Provisions: Tax implications and responsibilities when cross-border elements exist or specific tax considerations apply

2. Assignment: Rights to assign the agreement when parties want to allow or restrict transfer of rights

3. Confidentiality: Protection of confidential information when sensitive information is involved

4. Force Majeure: Provisions for unforeseen circumstances when parties want protection against extraordinary events

Suggested Schedules

1. Fee Calculation Schedule: Detailed methodology for calculating guarantee fees

2. Payment Schedule: Timeline of fee payments

3. Form of Notice: Template for formal notices under the agreement

4. Related Guarantees: List of associated guarantee agreements if applicable

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

Industries

Contract Law: Singapore Contract Law based on Common Law principles forms the fundamental basis for guarantee agreements

Contracts (Rights of Third Parties) Act 2001: Governs how third parties may enforce terms of a contract, relevant for guarantee arrangements involving multiple parties

Civil Law Act (Cap. 43): Provides general principles of civil law applicable to contracts and commercial transactions in Singapore

Unfair Contract Terms Act (Cap. 396): Regulates unfair terms in contracts and ensures reasonable standards of fair dealing

Banking Act (Cap. 19): Regulates banking business and financial institutions in Singapore, relevant if banks are involved in the guarantee arrangement

Moneylenders Act (Cap. 188): Governs moneylending activities and may be applicable if the guarantee involves moneylending transactions

Securities and Futures Act (Cap. 289): Relevant if the guarantee agreement involves securities or financial instruments

Stamp Duties Act (Cap. 312): Governs stamp duty implications for legal documents and agreements in Singapore

Companies Act (Cap. 50): Applicable when corporate entities are involved in the guarantee agreement

Consumer Protection (Fair Trading) Act: Protects consumer interests in commercial transactions, applicable for consumer guarantees

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore for financial institutions and transactions

Anti-Money Laundering Regulations: Compliance requirements for preventing money laundering in financial transactions and agreements

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

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