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Revolving Bank Guarantee
"I need a Revolving Bank Guarantee under Swiss law for an international trading company, with a maximum facility amount of 5 million CHF, multiple currency options (CHF, EUR, USD), and automatic reinstatement after each claim, effective from March 1, 2025."
1. Parties: Identification of the Guarantor Bank, the Applicant (Principal), and the Beneficiary
2. Background: Context of the guarantee, underlying business relationship, and purpose of the revolving facility
3. Definitions: Key terms including Guarantee Amount, Validity Period, Revolving Mechanism, Trigger Events, and other technical banking terms
4. Guarantee Amount and Currency: Specification of the maximum guarantee amount, currency, and calculation methods
5. Revolving Nature and Mechanism: Details of how the guarantee revolves, reinstatement conditions, and cycle periods
6. Conditions Precedent: Prerequisites for the guarantee becoming effective and conditions for revolving facility activation
7. Demand Requirements: Formal requirements for making a valid demand under the guarantee
8. Payment Terms: Timeline and process for payment upon valid demand, including currency and method
9. Bank's Rights and Obligations: Scope of bank's commitments, examination rights, and compliance requirements
10. Fees and Charges: All applicable fees, commissions, and charges for maintaining and utilizing the guarantee
11. Term and Expiry: Duration of the guarantee, expiry conditions, and notice requirements
12. Governing Law and Jurisdiction: Swiss law as governing law and jurisdiction specifications
1. Counter-Indemnity: Terms of indemnification by the Applicant to the Bank, used when additional security is required
2. Multiple Beneficiaries: Additional provisions for cases with more than one beneficiary
3. Assignment Provisions: Terms governing if and how the guarantee rights can be assigned, included when assignment might be needed
4. Foreign Law Interface: Provisions dealing with cross-border aspects, needed for international transactions
5. Electronic Presentation: Procedures for electronic demand presentation, included when digital processing is agreed
6. Force Majeure: Extended force majeure provisions, included for high-value or complex guarantees
7. Language: Provisions regarding official language and translations, needed for international use
8. Anti-Money Laundering Compliance: Detailed AML provisions, included for high-risk transactions or parties
1. Schedule 1 - Form of Demand: Template for making a valid demand under the guarantee
2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, charges, and commission rates
3. Schedule 3 - Revolving Calculation Examples: Examples illustrating how the revolving mechanism works
4. Schedule 4 - Required Documents: List of documents required for demand verification
5. Schedule 5 - Communication Procedures: Protocols for communications between parties
6. Appendix A - Specimen Signatures: Authorized signatures for all parties
7. Appendix B - Bank's Standard Terms: Standard terms and conditions of the issuing bank
8. Appendix C - Compliance Documentation: Required regulatory and compliance documentation
Authors
Banking and Financial Services
International Trade
Construction and Infrastructure
Manufacturing
Energy and Utilities
Telecommunications
Real Estate Development
Mining and Resources
Import/Export
Retail and Distribution
Government and Public Sector
Legal
Finance
Treasury
Risk Management
Compliance
Trade Finance
Corporate Banking
International Business
Credit
Commercial Operations
Chief Financial Officer
Treasury Manager
Finance Director
Risk Manager
Legal Counsel
Compliance Officer
Trade Finance Manager
Banking Relationship Manager
Corporate Finance Manager
Credit Risk Officer
Commercial Director
Contract Manager
Financial Controller
International Trade Specialist
Senior Banking Officer
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