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Performance Guarantee Agreement
"I need a Performance Guarantee Agreement for a construction project in Singapore where ABC Bank will guarantee my contractor's performance for SGD 5 million, with the guarantee period running until March 2025."
1. Parties: Identification and details of the Guarantor, Principal Obligor, and Beneficiary
2. Background: Context of the underlying obligation and reason for the guarantee
3. Definitions: Key terms used throughout the agreement including Guaranteed Obligations, Guarantee Period, and Demand
4. Guarantee and Indemnity: Core obligations of the guarantor and scope of guarantee, including primary obligation to pay and indemnification provisions
5. Payment Terms: Conditions and process for demanding payment under the guarantee, including timing and method of payment
6. Duration: Term of the guarantee and conditions for expiry, including any extension provisions
7. Enforcement: Rights and mechanisms for enforcing the guarantee, including conditions for making demands
8. Representations and Warranties: Standard representations about capacity, authority, and enforceability
9. Governing Law and Jurisdiction: Singapore law as governing law and jurisdiction provisions
1. Counter-Indemnity: Used when the guarantor requires indemnification from the principal obligor against losses from guarantee claims
2. Security: Additional security arrangements supporting the guarantee, including types of security and enforcement rights
3. Assignment: Rights to assign or transfer the guarantee, typically restricted for the guarantor but permitted for the beneficiary
4. Dispute Resolution: Alternative dispute resolution mechanisms such as arbitration or mediation provisions
5. Costs and Expenses: Provisions regarding payment of costs related to preparation, enforcement, and amendments
1. Form of Demand: Template for making demands under the guarantee, including required information and format
2. Underlying Agreement Details: Summary or extract of the principal obligation being guaranteed
3. Security Documents: Details of any additional security arrangements and related documentation
4. Corporate Authorizations: Evidence of authority to enter into guarantee, including board resolutions and power of attorney
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