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Contra Bank Guarantee
"Need a Contra Bank Guarantee document for our Singapore subsidiary where HSBC Singapore will be the counter-guarantor for a USD 5 million guarantee issued by Bank of China, with validity until March 2025, covering a large infrastructure project in Malaysia."
1. Parties: Identification of the guarantor bank, counter-guarantor bank, and beneficiary
2. Background: Context of the underlying transaction and purpose of the contra guarantee
3. Definitions: Key terms used throughout the document
4. Guarantee Amount: Specified amount of the guarantee and currency
5. Duration and Expiry: Validity period and conditions for expiry
6. Demand Requirements: Conditions and process for making claims
7. Counter-Indemnity: Terms of reimbursement between the banks
1. Governing Law and Jurisdiction: Specific jurisdiction clauses if different from Singapore - use when parties are from different jurisdictions
2. Language: Governing language of the guarantee - use when dealing with international parties
3. Force Majeure: Provisions for unforeseen circumstances - use in high-risk transactions or jurisdictions
1. Form of Demand: Template for making claims under the guarantee
2. Supporting Documents: List of required documents for claims
3. Fee Schedule: Details of banking charges and fees
4. Communication Procedures: Protocols for notices and communications between parties
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