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The Revolving Bank Guarantee is a specialized financial instrument used in Qatar when parties require ongoing, renewable financial security for commercial transactions. It is particularly useful in long-term contracts or where multiple draws may be necessary over time. The guarantee automatically reinstates to its original amount (or specified limit) after each valid demand, subject to an overall maximum cap. This document must comply with Qatar Central Bank regulations, the Qatar Civil Code, and relevant banking laws. It typically includes detailed provisions for the reinstatement mechanism, demand procedures, applicant's obligations, and bank's rights. The revolving nature distinguishes it from standard bank guarantees, making it suitable for projects or transactions requiring continuous financial security without the need for multiple separate guarantees.

1. Parties: Identifies the Bank (Guarantor), the Applicant (Principal), and the Beneficiary

2. Background: Sets out the context of the guarantee, including reference to the underlying commercial relationship

3. Definitions: Defines key terms used in the guarantee, including 'Guarantee Amount', 'Reinstatement', and 'Validity Period'

4. Guarantee Amount and Scope: Specifies the maximum guarantee amount and the revolving nature of the facility

5. Term and Validity: Specifies the duration of the guarantee and conditions for extension

6. Reinstatement Mechanism: Details how and when the guarantee amount is reinstated after partial or full calls

7. Demand Requirements: Specifies the process and requirements for making demands under the guarantee

8. Bank's Rights and Obligations: Sets out the bank's obligations in honoring demands and rights regarding the applicant

9. Applicant's Undertakings: Details the applicant's obligations including fees, counter-indemnity, and maintaining security

10. Governing Law and Jurisdiction: Specifies Qatar law as governing law and Qatar courts' jurisdiction