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Financial Guarantees
"I need a Financial Guarantee agreement under Austrian law where ABC Bank AG will guarantee payment obligations of up to 鈧5 million for our construction project running until March 2025, with specific provisions for partial drawings and automatic extension if the project is delayed."
1. Parties: Identification of the Guarantor, the Beneficiary, and the Principal Debtor
2. Background: Context of the underlying obligation and reason for the guarantee
3. Definitions: Key terms used throughout the guarantee agreement
4. Guarantee: Core guarantee obligations, scope, and amount of the guarantee
5. Term and Duration: Period of validity of the guarantee and any extension provisions
6. Demands and Payments: Process and requirements for making demands under the guarantee
7. Representations and Warranties: Guarantor's confirmations regarding capacity and authority
8. Independent Obligation: Confirmation that the guarantee is independent from the underlying obligation
9. Preservation of Rights: Beneficiary's rights preservation and non-waiver provisions
10. Transfer and Assignment: Rules regarding transfer of guarantee rights and obligations
11. Notices: Communication requirements and contact details
12. Governing Law and Jurisdiction: Confirmation of Austrian law application and jurisdiction
13. Execution: Signature blocks and execution requirements
1. Counter-Indemnity: Terms for reimbursement by the Principal Debtor to the Guarantor, used when there's a separate counter-indemnity arrangement
2. Security: Details of any collateral securing the guarantee obligations, included when specific assets are pledged
3. Tax Gross-Up: Provisions for tax payments and gross-up obligations, relevant when tax implications need to be addressed
4. Multiple Guarantors: Provisions governing joint and several liability, used when there is more than one guarantor
5. Currency Provisions: Rules for currency conversion and payment, needed for cross-border guarantees
6. Electronic Execution: Provisions for electronic signature and delivery, included when parties agree to electronic execution
7. Bank-Specific Provisions: Additional terms required by banking regulations, included when the guarantor is a financial institution
8. Step-In Rights: Provisions allowing the guarantor to step into the underlying contract, used in project finance guarantees
1. Form of Demand: Template for making a valid demand under the guarantee
2. Underlying Obligation: Summary or copy of the principal obligation being guaranteed
3. Conditions Precedent: List of documents and conditions required before the guarantee becomes effective
4. Contact Details: Detailed contact information for all parties and authorized representatives
5. Fee Schedule: Details of any fees, commissions, and charges related to the guarantee
6. Required Authorizations: Copies of corporate and regulatory approvals required for the guarantee
7. Security Documents: Copies or details of any related security documents, if applicable
Authors
Banking and Financial Services
Construction and Real Estate
International Trade
Manufacturing
Infrastructure and Project Finance
Energy
Telecommunications
Retail
Transportation and Logistics
Professional Services
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Banking
Trade Finance
Credit Administration
Operations
Commercial
Project Finance
Chief Financial Officer
Treasury Manager
Risk Manager
Legal Counsel
Banking Relationship Manager
Credit Officer
Corporate Finance Director
Project Finance Manager
Trade Finance Manager
Compliance Officer
Financial Controller
Corporate Treasurer
Banking Operations Manager
Senior Legal Counsel
Commercial Director
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