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Advising Bank In Bank Guarantee Template for Malaysia

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Key Requirements PROMPT example:

Advising Bank In Bank Guarantee

"I need an Advising Bank In Bank Guarantee document for our Malaysian branch to act as advising bank for multiple construction project guarantees issued by international banks, with specific provisions for digital authentication and SWIFT messaging protocols."

Document background
The Advising Bank In Bank Guarantee document is essential for international trade and financial transactions in Malaysia where an advising bank acts as an intermediary between the issuing bank and the beneficiary. This document becomes necessary when a bank guarantee needs to be advised or authenticated through a local bank in the beneficiary's country. It details the advising bank's responsibilities in verifying the authenticity of the guarantee, communicating with other parties, and maintaining compliance with Malaysian banking regulations, particularly the Financial Services Act 2013 and Bank Negara Malaysia guidelines. The document is crucial for managing risk and ensuring clarity in cross-border guarantee transactions, especially when dealing with international trade finance, construction projects, or large commercial contracts where bank guarantees are required as security.
Suggested Sections

1. Parties: Identification of the Advising Bank, the Issuing Bank, and reference to the Applicant and Beneficiary

2. Background: Context of the bank guarantee arrangement and the role of the Advising Bank

3. Definitions: Key terms used throughout the document including banking terms, guarantee-specific terminology, and regulatory references

4. Scope of Advisory Services: Detailed description of the advisory services to be provided by the Advising Bank

5. Authentication and Verification: Procedures for authenticating and verifying the bank guarantee

6. Communications Protocol: Procedures for communications between parties, including format and authorized channels

7. Fees and Charges: Details of all fees, charges, and commission payable to the Advising Bank

8. Liability and Indemnification: Extent and limitations of the Advising Bank's liability and indemnification provisions

9. Confidentiality: Obligations regarding confidential information and banking secrecy requirements

10. Force Majeure: Circumstances beyond control that may affect the performance of obligations

11. Governing Law and Jurisdiction: Application of Malaysian law and jurisdiction for dispute resolution

12. Termination: Circumstances and procedures for terminating the advisory relationship

Optional Sections

1. Anti-Money Laundering Compliance: Additional provisions for enhanced AML compliance, required when dealing with high-risk jurisdictions or complex transactions

2. Digital Authentication: Specific provisions for digital verification and authentication, needed when using electronic guarantee systems

3. Correspondent Banking Arrangements: Required when multiple correspondent banks are involved in the guarantee chain

4. Currency Provisions: Specific provisions for cross-border guarantees involving multiple currencies

5. Special Instructions: Required when there are specific handling requirements or non-standard procedures

6. Amendment Procedures: Detailed procedures for handling amendments to the guarantee, required for complex or long-term guarantees

Suggested Schedules

1. Schedule 1: Fee Schedule: Detailed breakdown of all fees, charges, and commission structures

2. Schedule 2: Authentication Procedures: Detailed procedures and requirements for guarantee authentication

3. Schedule 3: Communication Formats: Standard formats for various types of communications and instructions

4. Schedule 4: Authorized Signatories: List of authorized signatories and their specimen signatures

5. Appendix A: Standard Forms: Templates for standard forms and notices used in the advisory process

6. Appendix B: Compliance Checklist: Checklist of regulatory compliance requirements and verifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































Clauses






























Relevant Industries

Banking and Financial Services

International Trade

Construction

Manufacturing

Infrastructure Development

Energy

Telecommunications

Real Estate Development

Mining and Resources

Transportation and Logistics

Relevant Teams

Legal

Compliance

Trade Finance

Risk Management

International Banking

Operations

Treasury

Credit Administration

Documentary Credits

Corporate Banking

Relevant Roles

Trade Finance Manager

Bank Guarantee Officer

Compliance Officer

Legal Counsel

Risk Management Officer

International Banking Manager

Documentary Credits Manager

Treasury Manager

Banking Operations Manager

Financial Controller

Credit Risk Officer

Relationship 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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