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Financial Guarantee And Performance Guarantee
"Need a Financial Guarantee And Performance Guarantee for a Singapore-based construction project worth SGD 50 million, where our parent company will guarantee both payment obligations and construction milestones to be completed by March 2025."
1. Parties: Identification of guarantor, beneficiary, and principal debtor
2. Background: Context of the guarantee, underlying obligations, and relationship between parties
3. Definitions: Key terms used throughout the guarantee document
4. Guarantee and Indemnity: Core obligations of the guarantor, scope of guarantee, and indemnification provisions
5. Demand and Payment: Process for making claims, payment terms, and conditions for triggering guarantee
6. Duration and Release: Term of guarantee, expiry conditions, and release mechanisms
7. Representations and Warranties: Guarantor's confirmations regarding capacity and authority
8. Governing Law and Jurisdiction: Applicable law and dispute resolution provisions
1. Security Provisions: Additional security arrangements when guarantee is secured by specific assets
2. Step-In Rights: Rights to assume control of underlying project/contract, used for performance guarantees in project contracts
3. Currency Provisions: Exchange rate mechanisms and currency risk allocation for cross-border guarantees
4. Counter-Indemnity: Principal debtor's obligation to indemnify guarantor, included when principal debtor is party to guarantee document
1. Form of Demand: Template for making claims under the guarantee
2. Underlying Obligations: Details of guaranteed obligations or performance requirements
3. Corporate Authorizations: Relevant board resolutions and powers of attorney
4. Security Documents: Details of any associated security arrangements when security is provided
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