Document background
The Guarantee Facility Agreement is a crucial financial instrument used when a company needs ongoing access to bank guarantees for its business operations. This agreement, governed by Belgian law, establishes a framework under which a financial institution agrees to issue various types of guarantees (such as performance bonds, tender guarantees, or payment guarantees) up to a specified facility limit. It is particularly useful for companies engaged in regular commercial contracts requiring bank guarantees, international trade, or construction projects. The document includes comprehensive details about facility limits, issuance procedures, fees, security requirements, and the obligations of all parties involved. The agreement must comply with Belgian financial regulations, including the Belgian Civil Code and Financial Collateral Law, while also considering relevant EU directives. It's commonly used by companies operating in Belgium or engaging in cross-border transactions involving Belgian entities.
