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Cash Backed Bank Guarantee for Austria

Cash Backed Bank Guarantee Template for Austria

A Cash Backed Bank Guarantee under Austrian law is a financial instrument where a bank provides a guarantee to a beneficiary, secured by a cash deposit from the applicant. This document, governed by Austrian law including the Austrian Banking Act (BWG) and Civil Code (ABGB), establishes the terms under which the bank will issue the guarantee, manage the cash deposit, and honor any valid demands. It details the rights and obligations of all parties, specific conditions for calling the guarantee, and the mechanism for managing the cash backing, while ensuring compliance with Austrian banking regulations and financial services laws.

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What is a Cash Backed Bank Guarantee?

The Cash Backed Bank Guarantee is a crucial financial instrument used in various commercial and financial transactions under Austrian law. This document is typically employed when a party needs to provide a secure financial guarantee to a beneficiary, with the unique feature that the guarantee is fully backed by a cash deposit. The cash backing provides additional security to the bank and can often result in more favorable terms for the applicant. The document is structured to comply with Austrian banking regulations, particularly the Banking Act (BWG) and Civil Code (ABGB), and includes detailed provisions for the management of the cash deposit, conditions for guarantee calls, and rights of all parties involved. This type of guarantee is commonly used in trade finance, construction projects, tender submissions, and various commercial contracts where a secure, cash-backed guarantee is required or preferred.

What sections should be included in a Cash Backed Bank Guarantee?

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

2. Background: Context of the guarantee, including the underlying transaction or obligation being guaranteed

3. Definitions: Key terms used in the guarantee, including 'Guaranteed Amount', 'Cash Deposit', 'Guarantee Period', and other relevant terms

4. Cash Deposit Arrangements: Details of the cash backing, including amount, account details, and blocking arrangements

5. Guarantee Terms: Core terms of the bank guarantee, including amount, validity period, and conditions for calling

6. Demand Requirements: Formal requirements for making a valid demand under the guarantee

7. Bank's Rights and Obligations: Scope of bank's obligations and rights regarding the guarantee and cash deposit

8. Fees and Charges: Bank's fees for issuing and maintaining the guarantee

9. Term and Expiry: Duration of the guarantee and conditions for expiry or termination

10. Governing Law and Jurisdiction: Confirmation of Austrian law governance and jurisdiction for disputes

What sections are optional to include in a Cash Backed Bank Guarantee?

1. Multiple Beneficiaries: Required when the guarantee is issued in favor of multiple beneficiaries, defining their rights and relationships

2. Transfer Provisions: Include when the guarantee needs to be transferable to other beneficiaries

3. Partial Drawings: Required when multiple drawings under the guarantee are permitted

4. Counter-Indemnity: Additional protection for the bank, typically used in higher-risk transactions

5. Special Conditions: Any specific conditions required for the particular transaction or by the beneficiary

6. Language Provisions: Required when the guarantee may be issued in multiple languages

7. Force Majeure: Optional provisions for extraordinary circumstances affecting guarantee operations

What schedules should be included in a Cash Backed Bank Guarantee?

1. Schedule 1 - Form of Demand: Template for making a compliant demand under the guarantee

2. Schedule 2 - Cash Deposit Details: Specific details of the cash deposit account and blocking arrangements

3. Schedule 3 - Fee Schedule: Detailed breakdown of all applicable fees and charges

4. Schedule 4 - Required Documents: List of documents required for guarantee issuance and demands

5. Appendix A - Specimen Signatures: Authorized signatures for all parties involved

6. Appendix B - Communication Details: Contact information and authorized communication methods for all parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Austria

Publisher

Ƶ

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use
Relevant legal definitions






































Clauses
































Relevant Industries

Banking and Financial Services

Construction and Real Estate

International Trade

Manufacturing

Energy and Utilities

Infrastructure Development

Telecommunications

Government and Public Sector

Import/Export

Retail and Commercial

Relevant Teams

Treasury

Finance

Legal

Compliance

Risk Management

Trade Finance

Corporate Banking

Commercial

Credit Administration

Operations

Relevant Roles

Treasury Manager

Financial Director

Chief Financial Officer

Banking Relationship Manager

Trade Finance Manager

Contract Manager

Risk Manager

Legal Counsel

Compliance Officer

Credit Manager

Finance Controller

Project Manager

Commercial Director

Transaction Banking Officer

Corporate Banking Officer

Industries







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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