The Indirect Bank Guarantee template is designed for situations where a bank (instructing bank) requests another bank (issuing bank) to issue a guarantee on behalf of its customer in favor of a beneficiary, typically in cross-border transactions. This arrangement is particularly common when the beneficiary requires a guarantee from a local bank in Saudi Arabia. The document ensures compliance with Saudi Arabian banking regulations, SAMA requirements, and Sharia principles, while providing comprehensive protection for all parties involved. The template includes essential provisions for the guarantee's validity, demand procedures, payment terms, and counter-indemnity obligations. It is structured to accommodate various commercial purposes, from construction project guarantees to tender bonds, while maintaining consistency with Saudi Arabian legal requirements and banking practices.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Parties: Identifies all parties: the instructing bank, the issuing bank, and the beneficiary
2. Background: Explains the context of the guarantee, including the underlying transaction and the relationship between parties
3. Definitions: Defines key terms used throughout the guarantee document
4. Guarantee Amount and Currency: Specifies the maximum amount of the guarantee and the currency of payment
5. Scope of Guarantee: Details the specific obligations or performance being guaranteed
6. Duration and Validity: Specifies the effective date, expiry date, and any automatic extension provisions
7. Demand Requirements: Sets out the process and requirements for making a valid demand under the guarantee
8. Payment Terms: Specifies the payment process, timing, and conditions for honoring the guarantee
9. Counter-Indemnity: Details the instructing bank's obligation to indemnify the issuing bank
10. Compliance Requirements: Outlines compliance with Sharia principles and SAMA regulations
11. Governing Law and Jurisdiction: Specifies Saudi Arabian law as governing law and relevant courts
12. Notices: Details how formal communications between parties should be made
1. Language Provisions: Required when the guarantee is issued in multiple languages, specifying which version prevails
2. Transfer and Assignment: Include when the guarantee needs to be transferable or assignable
3. Partial Drawings: Include when multiple partial demands are permitted under the guarantee
4. Force Majeure: Include when specific force majeure provisions are required beyond standard law
5. Tax Provisions: Include when specific tax implications need to be addressed
6. Anti-Money Laundering Provisions: Include when enhanced AML compliance requirements are needed
7. Dispute Resolution: Include when specific arbitration or mediation procedures are preferred over court jurisdiction
1. Schedule 1 - Form of Demand: Standard template for making a demand under the guarantee
2. Schedule 2 - Fee Schedule: Details of all fees, charges, and commission rates
3. Schedule 3 - Documentation Requirements: List of required supporting documents for demands
4. Schedule 4 - Communication Procedures: Detailed procedures for communications between banks
5. Appendix A - Specimen Signatures: Authorized signatures for all parties
6. Appendix B - SAMA Compliance Checklist: Checklist ensuring compliance with SAMA regulations
7. Appendix C - Sharia Compliance Certificate: Certificate from Sharia board approving the guarantee structure
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Construction and Infrastructure
International Trade
Energy and Utilities
Manufacturing
Real Estate Development
Government and Public Sector
Defense Contracting
Telecommunications
Mining and Natural Resources
Relevant Teams
Legal
Finance
Treasury
Trade Finance
Compliance
Risk Management
Credit
Banking Operations
Project Finance
Commercial Operations
Islamic Banking
Documentary Credits
Relevant Roles
Chief Financial Officer
Treasury Manager
Trade Finance Manager
Legal Counsel
Compliance Officer
Risk Manager
Credit Manager
Banking Relationship Manager
Project Finance Director
Contract Manager
Finance Director
Company Secretary
Commercial Director
Islamic Banking Specialist
Senior Bank Officer
Documentary Credits Manager
Find the exact document you need
Foreign Bank Guarantee
A Shariah-compliant bank guarantee issued by a foreign bank under Saudi Arabian law, securing obligations to a Saudi beneficiary.
Download
Bank Guarantee Confirmation Letter
A Saudi Arabian banking document confirming the validity and enforceability of a bank guarantee, issued under Saudi law and SAMA regulations.
Download
Bank Guarantee Return Letter
A formal request document used in Saudi Arabia to obtain the return of a bank guarantee from a financial institution after fulfillment of underlying obligations.
Download
International Bank Guarantee
Template for International Bank Guarantees under Saudi Arabian law, compliant with SAMA regulations and Shariah principles.
Download
Cheque Guarantee Letter
A bank-issued guarantee document under Saudi Arabian law that ensures payment of specified cheque(s) to a beneficiary, subject to Saudi banking regulations and Shariah compliance.
Download
Bank Guarantee For Purchase Of Goods
A Shariah-compliant bank guarantee under Saudi Arabian law securing payment obligations for goods purchase, providing financial security to sellers against buyer default.
Download
Letter Of Guarantee For Loan
A Sharia-compliant bank guarantee document under Saudi Arabian law that ensures payment to a beneficiary in case of default by a principal debtor.
Download
Commercial Standby Letter Of Credit
A Saudi Arabian banking instrument providing financial guarantee in commercial transactions, governed by SAMA regulations and international banking practices.
Download
Guarantee Cheque Against Advance Payment
A Saudi Arabian law-governed document establishing terms for a guarantee cheque provided as security against an advance payment, including enforcement rights and banking regulations compliance.
Download
Bank Transfer Guarantee
A Saudi Arabian banking instrument where a bank guarantees payment to a beneficiary under specified conditions, compliant with Islamic banking principles and local regulations.
Download
Corporate Guarantee And Bank Guarantee
Template for Corporate and Bank Guarantees under Saudi Arabian law, compliant with Shariah principles and SAMA regulations.
Download
Business Bank Guarantee
A Saudi Arabian law-governed bank guarantee document providing financial security from a bank to a beneficiary, complying with SAMA regulations and Shariah principles.
Download
Open Bank Guarantee
A Saudi Arabian law-governed bank guarantee document establishing an unconditional payment obligation from a bank to a beneficiary, compliant with Islamic finance principles.
Download
Bank Guarantee And Performance Guarantee
A Sharia-compliant bank and performance guarantee document under Saudi Arabian law, providing financial security and performance assurance in commercial transactions.
Download
Personal Banker's Guarantee
A Sharia-compliant banker's guarantee document under Saudi Arabian law, representing a bank's commitment to pay a specified sum on behalf of a principal debtor.
Download
Letter Of Credit Guarantee
A Saudi Arabian banking instrument guaranteeing payment under a Letter of Credit, compliant with local laws and Shariah principles.
Download
Government Deposit Guarantee
A Saudi Arabian law-governed agreement establishing government guarantees for deposits in licensed financial institutions, incorporating both conventional and Islamic banking principles.
Download
Original Bank Guarantee
A Shariah-compliant bank guarantee document under Saudi Arabian law, providing financial security through an irrevocable undertaking from a bank to pay a specified sum upon demand.
Download
Performance Guarantee In Tender
A bank-issued guarantee document under Saudi Arabian law that secures a bidder's obligations in a tender process.
Download
Construction Bank Guarantee
A Sharia-compliant bank guarantee document under Saudi Arabian law that secures construction project obligations through a bank's financial commitment.
Download
Bank Guarantee Renewal Letter
A formal letter issued under Saudi Arabian law to extend the validity period of an existing bank guarantee, complying with both SAMA requirements and Shariah principles.
Download
Down Payment Bank Guarantee
A Saudi Arabian bank guarantee securing the repayment of advance payments in commercial transactions, issued under SAMA regulations and Shariah law.
Download
Financial Bank Guarantee
A Shariah-compliant bank guarantee document under Saudi Arabian law where a bank guarantees payment to a beneficiary upon specified conditions.
Download
Indirect Bank Guarantee
Template for Indirect Bank Guarantee under Saudi Arabian law, compliant with SAMA regulations and Sharia principles, for use in international trade and commercial transactions.
Download
Bank Guarantee For Deposit
A Saudi Arabian law-governed bank guarantee document where a bank guarantees payment of a deposit amount to a beneficiary, complying with SAMA regulations and Sharia principles.
Download
Standby Letter Of Credit For Lease
A Saudi Arabian banking instrument that provides landlords with a Shariah-compliant guarantee for lease payments, ensuring financial security in case of tenant default.
Download
Bank To Bank Guarantee
A Saudi Arabian-compliant financial instrument where one bank guarantees obligations to another bank, incorporating SAMA regulations and Shariah principles.
Download
Bank Guarantee First Demand
A Sharia-compliant First Demand Bank Guarantee under Saudi Arabian law, providing immediate payment upon valid demand without proof of default.
Download
Advance Bank Guarantee
A Shariah-compliant bank guarantee document under Saudi Arabian law, securing advance payments in commercial contracts through a bank's unconditional payment undertaking.
Download
Unlimited Bank Guarantee
A Shariah-compliant unlimited bank guarantee under Saudi Arabian law, providing unconditional security for commercial obligations without monetary limit.
Download
Standby Bank Guarantee
A Saudi law-compliant bank guarantee document representing a bank's irrevocable commitment to pay a specified sum upon demand, structured according to SAMA regulations and Sharia principles.
Download
Financial Guarantee And Performance Guarantee
A Saudi Arabian law-governed document combining financial and performance guarantees, ensuring both monetary and operational obligations while maintaining Shariah compliance.
Download
Bank Guarantee For Tender
A Saudi Arabia-governed bank guarantee document where a bank guarantees payment to a beneficiary if a tender participant fails to meet their tender obligations, compliant with Saudi law and Sharia principles.
Download
Non Financial Guarantee
A Saudi Arabian law-governed guarantee agreement ensuring the non-financial obligations or performance of one party to another, structured in compliance with Sharia principles.
Download
Digital Bank Guarantee
A digitally-issued bank guarantee under Saudi Arabian law, providing financial security through electronic channels while maintaining Shariah compliance.
Download
Drawdown Bank Guarantee
A Sharia-compliant Drawdown Bank Guarantee template under Saudi Arabian law, establishing terms for bank guarantees and drawdown mechanisms in accordance with SAMA regulations.
Download
Bank Guarantee Irrevocable
A Saudi Arabian law-governed irrevocable bank guarantee document providing unconditional payment undertaking from a bank to a beneficiary, compliant with SAMA regulations and Sharia principles.
Download
Bank Guarantee Letter Of Credit
A Shariah-compliant bank guarantee letter of credit document under Saudi Arabian law, providing secure payment commitment in international trade transactions.
Download
Trade Finance Bank Guarantee
A Sharia-compliant bank guarantee document under Saudi Arabian law that secures payment or performance obligations in international trade transactions.
Download
Bank Assurance Letter
A Saudi Arabian bank-issued guarantee document that provides financial assurance to a beneficiary under SAMA regulations and Shariah law.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)