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Bank Guarantee Irrevocable Template for Austria

An irrevocable bank guarantee under Austrian law is a binding financial instrument where a bank makes an unconditional commitment to pay a specified sum to a beneficiary upon demand, subject to the terms and conditions stated in the guarantee. Governed by Austrian law, particularly the Austrian Civil Code (ABGB) and Banking Act (BWG), this document provides a high level of security in commercial transactions. The guarantee's irrevocable nature means it cannot be modified or cancelled without the beneficiary's consent, offering robust protection for the guaranteed party. The document must comply with Austrian banking regulations and formal requirements, including specific documentation and verification procedures.

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What is a Bank Guarantee Irrevocable?

The Bank Guarantee Irrevocable is a crucial financial instrument used in Austrian and international business transactions to provide security and assurance to parties involved in commercial dealings. This document is typically employed when one party requires financial security from another, such as in construction projects, tender submissions, or performance obligations. Under Austrian law, these guarantees are governed by strict regulatory requirements and banking practices, providing a high degree of certainty and enforceability. The guarantee's irrevocable nature ensures that it cannot be withdrawn or modified without the beneficiary's consent, making it a preferred form of security in significant commercial transactions. The document includes detailed information about the guaranteed amount, conditions for calling the guarantee, payment terms, and the specific obligations being secured, all structured to comply with Austrian legal requirements and banking standards.

What sections should be included in a Bank Guarantee Irrevocable?

1. Place and Date: Location and date of issuance of the bank guarantee

2. Parties: Identification of the guarantor bank, the beneficiary, and the principal debtor

3. Reference Numbers: Bank's reference number and any related transaction numbers

4. Guarantee Amount: The maximum amount of the guarantee expressed in numbers and words

5. Underlying Transaction: Description of the primary obligation or transaction being guaranteed

6. Guarantee Declaration: Express and unconditional declaration of guarantee by the bank

7. Irrevocability Statement: Clear statement that the guarantee is irrevocable

8. Conditions for Payment: Specific conditions and documentation required for calling the guarantee

9. Payment Terms: Timeline and method of payment upon valid demand

10. Expiry: Validity period and expiration conditions of the guarantee

11. Governing Law: Explicit statement that Austrian law governs the guarantee

12. Jurisdiction: Specification of competent courts for disputes

13. Bank's Signature: Authorized signatures and bank stamp section

What sections are optional to include in a Bank Guarantee Irrevocable?

1. Reduction Clause: Optional clause specifying conditions for automatic reduction of guarantee amount, used for performance or warranty guarantees

2. Transfer Provisions: Section specifying whether the guarantee is transferable, included when transferability is requested

3. Counter-Guarantee Reference: Reference to any counter-guarantee arrangements, included in international transactions

4. URDG 758 Application: Declaration of application of ICC Uniform Rules for Demand Guarantees, included when parties agree to apply international standards

5. Language Provision: Specification of controlling language version, included when guarantee is issued in multiple languages

6. Electronic Presentation: Terms for electronic presentation of documents, included when electronic submissions are accepted

What schedules should be included in a Bank Guarantee Irrevocable?

1. Appendix A - Form of Demand: Template for making a compliant demand under the guarantee

2. Appendix B - Required Documents: List of documents required to be presented with any demand

3. Appendix C - Authorized Signatories: List of persons authorized to make demands under the guarantee

4. Appendix D - Underlying Contract Extract: Relevant extracts from the underlying contract being guaranteed (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Austria

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use

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