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The Back-to-Back Bank Guarantee is a sophisticated financial instrument commonly used in international trade and complex commercial transactions under Canadian jurisdiction. It is particularly useful when a beneficiary requires a guarantee from a local bank but the applicant's bank is located in a different country or jurisdiction. The document creates two interconnected guarantees: the primary guarantee issued by a local bank to the beneficiary, and a counter-guarantee issued by the applicant's bank to the primary bank. This arrangement provides security for all parties while complying with local banking regulations and international standards. The document includes comprehensive terms covering guarantee amounts, validity periods, demand procedures, payment mechanisms, and compliance requirements under Canadian federal banking laws and relevant provincial regulations.

1. Parties: Identification of all parties involved: Primary Bank (Guarantor), Counter-Guaranteeing Bank, Applicant, and Beneficiary

2. Background: Context of the underlying transaction and the reason for the back-to-back guarantee arrangement

3. Definitions: Clear definitions of technical terms, banking terminology, and specific terms used in the guarantee

4. Structure of the Back-to-Back Guarantee: Explanation of how the two guarantees (primary and counter) are linked and their interdependence

5. Guarantee Amount and Currency: Specification of the guarantee amounts, currencies, and any exchange rate provisions

6. Terms and Conditions of the Primary Guarantee: Detailed terms of the primary guarantee including validity, conditions for demand, and payment terms

7. Terms and Conditions of the Counter-Guarantee: Detailed terms of the counter-guarantee matching the primary guarantee

8. Demand Requirements: Specific requirements and procedures for making a valid demand under both guarantees

9. Payment Terms and Mechanism: Details of how and when payments will be made under both guarantees

10. Expiry and Release: Conditions for expiry of both guarantees and release of obligations

11. Governing Law and Jurisdiction: Specification of applicable law and courts for dispute resolution