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Performance Guarantee Agreement
"I need a Performance Guarantee Agreement where ABC Bank plc will guarantee my construction company's obligations to complete a £5 million office development project in Manchester, with the guarantee period running from 1 March 2025 to 31 December 2025."
1. Parties: Identification of the Guarantor, Principal Obligor, and Beneficiary
2. Background: Context of the underlying obligation and reason for guarantee
3. Definitions: Key terms used throughout the agreement
4. Guarantee and Indemnity: Core guarantee obligations and indemnity provisions
5. Scope of Guarantee: Extent and limitations of the guaranteed obligations
6. Duration: Term of the guarantee and conditions for termination
7. Demands and Payments: Process for making claims under the guarantee
8. Representations and Warranties: Guarantor's confirmations about capacity and authority
9. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction
1. Step-in Rights: Rights of Guarantor to take over performance in construction or project-based guarantees
2. Currency Provisions: Rules for currency conversion and payment when guarantee involves multiple currencies
3. Assignment and Transfer: Rights to assign or transfer the guarantee when parties want to allow transfer rights
4. Counter-Indemnity: Principal's obligation to indemnify guarantor when requested by guarantor
1. Form of Demand: Template for making claims under the guarantee
2. Underlying Agreement: Copy or summary of the principal obligation being guaranteed
3. Guarantor Board Resolution: Corporate approval for providing the guarantee
4. Calculation of Guaranteed Amount: Method for calculating the guarantee amount if variable
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