tiktok���˰�

The Guarantee Facility Agreement is essential for businesses requiring bank guarantees to support their commercial operations. This document type is particularly relevant in Germany and for cross-border transactions involving German entities. The agreement enables companies to obtain various types of guarantees (such as performance bonds, advance payment guarantees, or warranty bonds) up to an agreed facility limit. The Guarantee Facility Agreement comprehensively addresses the rights and obligations of all parties, including the guarantee issuance process, fee structures, and the applicant's counter-indemnity obligations. It must comply with German banking regulations and civil law requirements, particularly the provisions of the German Civil Code (BGB) regarding guarantees and security interests. The document is crucial for companies engaged in large projects, international trade, or activities requiring financial backing from banking institutions.

1. Parties: Identification of the guarantee facility provider (typically a bank), the applicant/obligor, and any additional parties

2. Background: Context of the agreement, relationship between parties, and purpose of the guarantee facility

3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and currency calculations if applicable

4. The Facility: Core terms including facility amount, purpose, availability period, and types of guarantees available

5. Issuance of Guarantees: Process and conditions for requesting, issuing, and amending guarantees

6. Fees and Commissions: All fees including guarantee commission, issuance fees, amendment fees, and payment terms

7. Counter-Indemnity: Obligor's obligation to indemnify the guarantee provider for any payments made under guarantees

8. Representations and Warranties: Standard representations by the obligor regarding legal capacity, authority, and financial condition

9. Undertakings: General and specific obligations of the obligor during the facility period

10. Events of Default: Circumstances constituting default and consequences thereof

11. Payments and Calculations: Payment mechanics, calculation conventions, and currency provisions

12. Changes to Parties: Rules for assignment, transfer, and succession

13. Administration: Administrative provisions including notices and amendments

14. Governing Law and Jurisdiction: Choice of German law and jurisdiction provisions