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The LC Bank Guarantee is a crucial financial instrument in Saudi Arabian commercial transactions, providing security and assurance to beneficiaries regarding the performance or financial obligations of other parties. This document is commonly used in various scenarios including tender submissions, performance securities, advance payment guarantees, and financial obligations. The guarantee must strictly comply with Saudi Arabian banking regulations, SAMA guidelines, and Shariah principles, making it distinct from conventional banking instruments. It includes specific provisions for the amount guaranteed, validity period, conditions for calling upon the guarantee, and claim procedures. The document is particularly important in the Saudi market where bank guarantees are frequently required for government contracts, large commercial transactions, and international trade dealings. The LC Bank Guarantee serves as a risk mitigation tool, providing beneficiaries with a secure and efficient means of ensuring financial commitments are met.

1. Bank Details and Reference: Complete details of the issuing bank, including name, branch, and reference number

2. Beneficiary Details: Full name and address of the party in whose favor the guarantee is issued

3. Applicant Details: Full name and address of the party requesting the guarantee

4. Guarantee Amount: The specific amount of the guarantee in both numbers and words, including currency

5. Purpose of Guarantee: Clear statement of the underlying transaction or purpose for which the guarantee is issued

6. Validity Period: Explicit start and end dates of the guarantee, including any auto-renewal clauses

7. Terms of Payment: Conditions under which the guarantee can be called upon and payment procedures

8. Governing Law and Jurisdiction: Statement of Saudi law as governing law and relevant jurisdiction

9. Shariah Compliance Statement: Declaration of compliance with Islamic banking principles