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Bank Guarantee And Lc for Indonesia

Bank Guarantee And Lc Template for Indonesia

This document template provides a comprehensive framework for Bank Guarantees and Letters of Credit under Indonesian law, incorporating requirements from Bank Indonesia regulations, the Indonesian Civil Code, and international banking practices. It ensures compliance with both domestic financial regulations and international standards such as UCP 600 and URDG 758. The document includes essential provisions for security interests, payment mechanisms, claim procedures, and dispute resolution, while accommodating specific requirements for both domestic and international trade transactions within the Indonesian legal framework.

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Bank Guarantee And Lc

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What is a Bank Guarantee And Lc?

This Bank Guarantee and LC document is essential for securing financial transactions and international trade operations under Indonesian jurisdiction. It serves as a crucial instrument for providing financial security and facilitating trade finance, incorporating requirements from Bank Indonesia regulations and international banking standards. The document is typically used when parties need to secure payment obligations, performance commitments, or trade financing, particularly in cross-border transactions. It includes detailed provisions for the issuance, amendment, and claim procedures of bank guarantees and letters of credit, while ensuring compliance with Indonesian banking laws, financial services regulations, and relevant international banking practices such as UCP 600 and URDG 758. The template is designed to accommodate various transaction types, from simple domestic guarantees to complex international trade financing arrangements.

What sections should be included in a Bank Guarantee And Lc?

1. Parties: Identification of all parties: the bank (guarantor/issuing bank), the applicant (principal/account party), and the beneficiary

2. Background: Context of the guarantee/LC issuance, including the underlying transaction details

3. Definitions: Definitions of key terms used in the document

4. Guarantee/LC Amount and Currency: Specification of the maximum amount and currency of the guarantee/LC

5. Scope of Guarantee/LC: Detailed description of what the guarantee/LC covers and the conditions under which it can be called

6. Validity Period: Effective date, expiry date, and any conditions affecting the validity period

7. Claim Procedures: Detailed process for making claims, required documentation, and timeframes

8. Payment Terms: Conditions and procedures for payment upon valid claim

9. Bank's Rights and Obligations: Detailed description of the bank's responsibilities and rights under the guarantee/LC

10. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

What sections are optional to include in a Bank Guarantee And Lc?

1. Counter-Guarantee Provisions: Required when there's a counter-guarantee from another bank involved

2. Transfer and Assignment: Include when the guarantee/LC needs to be transferable

3. Language Requirements: Required for international transactions specifying the controlling language version

4. Force Majeure: Optional clause defining force majeure events and their impact

5. Anti-Money Laundering Compliance: Required for international transactions or high-value guarantees

6. Electronic Presentation: Include when electronic presentation of documents is permitted

7. Multiple Beneficiary Provisions: Required when there are multiple beneficiaries

8. Partial Drawings: Include when partial drawings are permitted under the LC

What schedules should be included in a Bank Guarantee And Lc?

1. Schedule 1 - Form of Demand: Standard format for making claims under the guarantee/LC

2. Schedule 2 - Required Documents: List and format of documents required for claims

3. Schedule 3 - Specimen Signatures: Authorized signatures for the parties involved

4. Schedule 4 - Fee Schedule: Details of all applicable fees and charges

5. Schedule 5 - Communication Procedures: Agreed methods and details for communications between parties

6. Appendix A - Underlying Contract Details: Summary or copy of the underlying contract/transaction

7. Appendix B - Special Conditions: Any special terms or conditions applicable to the specific guarantee/LC

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

Indonesia

Publisher

Ƶ

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use
Relevant legal definitions






































Clauses




































Relevant Industries

Banking and Financial Services

International Trade

Construction

Manufacturing

Mining and Resources

Infrastructure

Energy

Import/Export

Retail

Logistics and Transportation

Agriculture

Telecommunications

Relevant Teams

Legal

Trade Finance

Corporate Banking

Risk Management

Compliance

Treasury

International Banking

Operations

Credit

Documentary Credits

Finance

Commercial Banking

Relevant Roles

Trade Finance Manager

Credit Risk Officer

International Banking Officer

Corporate Banking Manager

Legal Counsel

Compliance Officer

Treasury Manager

Documentary Credits Specialist

Trade Operations Manager

Financial Controller

Commercial Banking Officer

Risk Management Director

Chief Financial Officer

International Trade Specialist

Banking Operations Manager

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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