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A Bank Guarantee Letter is a crucial financial instrument used in Austrian business transactions where one party (the beneficiary) requires financial security from another party (the principal). This document, governed by Austrian law, particularly the Civil Code (ABGB) and Commercial Code (UGB), represents a bank's irrevocable commitment to pay a specified sum upon the occurrence of certain events or conditions. The guarantee can be used in various contexts, including bid bonds, performance guarantees, advance payment guarantees, or rental guarantees. The document must comply with Austrian banking regulations and typically includes detailed information about all parties, the guaranteed amount, validity period, calling conditions, and governing law provisions. Bank Guarantee Letters are particularly important in international trade, construction projects, and other commercial transactions where parties seek to mitigate financial risk.

1. Bank Details and Reference Number: Full name and address of the issuing bank, guarantee reference number, and date of issuance

2. Beneficiary Information: Complete details of the beneficiary including full name, address, and registration details if a company

3. Principal Information: Complete details of the principal (the party requesting the guarantee) including full name, address, and registration details if a company

4. Guarantee Amount: The specific amount and currency of the guarantee, written in both numbers and words

5. Underlying Transaction: Reference to the underlying contract or obligation being guaranteed, including relevant contract numbers and dates

6. Guarantee Scope: Clear statement of what is being guaranteed and the bank's obligations

7. Validity Period: Explicit start and end dates of the guarantee, including any automatic extension clauses

8. Payment Conditions: Terms and conditions under which the guarantee can be called, including any required documentation

9. Governing Law and Jurisdiction: Explicit statement that Austrian law governs and specification of jurisdiction for disputes

10. Bank Signature Block: Official signatures, stamps, and authentication details of the issuing bank