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The Bank Guarantee For Commercial Lease is a crucial security instrument in Singapore's commercial property market. It is typically used when a tenant needs to provide security for their lease obligations without tying up substantial cash in a security deposit. The guarantee ensures that the landlord can recover unpaid rent or damages up to the guaranteed amount directly from the bank, which acts as guarantor. Under Singapore law, these guarantees must comply with Monetary Authority of Singapore regulations and are commonly used for retail, office, and industrial properties. The document specifies the guaranteed amount, duration, calling conditions, and includes provisions for demand and payment.
