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Irrevocable And Unconditional Bank Guarantee
"Need to draft an Irrevocable and Unconditional Bank Guarantee for AUD 5 million to secure a construction project in Sydney, with ANZ Bank as guarantor and validity until March 31, 2025."
1. Parties: Identifies the Bank (Guarantor), the Beneficiary, and the Account Party (Principal)
2. Background: Brief context of the underlying transaction necessitating the bank guarantee
3. Definitions: Key terms used in the guarantee including 'Guaranteed Sum', 'Expiry Date', and 'Demand'
4. Guarantee and Undertaking: Core section stating the bank's unconditional and irrevocable obligation to pay
5. Amount and Currency: Specifies the maximum guaranteed amount and currency of payment
6. Duration and Validity: States the effective date, expiry date, and any automatic extension provisions
7. Demand Requirements: Specifies the form and process for making a demand under the guarantee
8. Payment Terms: Details of how and when payment will be made following a valid demand
9. Independent Obligation: Confirms the guarantee is independent of the underlying transaction
10. Assignment and Transfer: Provisions regarding transferability of the guarantee
11. Governing Law and Jurisdiction: Specifies Australian law as governing law and relevant jurisdiction
1. Multiple Currency Provisions: Required when the guarantee allows for payment in multiple currencies or currency conversion
2. Counter-Indemnity: Include when there's a specific counter-indemnity arrangement with the account party
3. Electronic Presentation: Include when electronic presentation of demands is permitted
4. Force Majeure: Optional clause dealing with events beyond the bank's control
5. Sanctions Compliance: Required for international guarantees or when dealing with overseas parties
6. Branch Provisions: Include when multiple branches of the bank are involved or for international guarantees
7. Language Provisions: Required when the guarantee might be translated or used in non-English speaking jurisdictions
1. Form of Demand: Template for making a valid demand under the guarantee
2. Authorized Signatories: List of persons authorized to sign demands on behalf of the beneficiary
3. Supporting Documents: List and samples of any required supporting documents for making a claim
4. Communication Details: Contact details and prescribed methods of communication for all parties
5. Underlying Contract Details: Summary of the underlying contract or transaction (if referenced in the guarantee)
Authors
Banking and Financial Services
Construction and Infrastructure
International Trade
Mining and Resources
Real Estate Development
Government and Public Sector
Manufacturing
Energy and Utilities
Telecommunications
Transportation and Logistics
Legal
Finance
Treasury
Risk Management
Commercial Operations
Compliance
Trade Finance
Credit
Banking Operations
Project Management
Chief Financial Officer
Treasury Manager
Financial Controller
Legal Counsel
Commercial Director
Risk Manager
Contract Manager
Banking Relationship Manager
Trade Finance Manager
Company Secretary
Credit Manager
Compliance Officer
Finance Director
Project Manager
Operations Manager
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