Document background
The Corporate Guarantee And Bank Guarantee document is essential in Pakistani business and banking transactions where financial security is required for commercial obligations. This document is typically used when a corporate entity or bank needs to guarantee the performance or payment obligations of another party, combining elements of both corporate and bank guarantee structures. It finds application in various scenarios including project financing, tender submissions, advance payment security, and performance security. The document must comply with Pakistani law, particularly the Contract Act 1872, Banking Companies Ordinance 1962, and relevant State Bank of Pakistan regulations. It includes provisions for demand procedures, enforcement mechanisms, and liability limitations, while addressing specific requirements for both corporate and bank guarantors under Pakistani jurisdiction.
