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Direct Bank Guarantee
"I need a Direct Bank Guarantee document for a construction project in Jakarta, where Bank Mandiri will guarantee IDR 5 billion to the Ministry of Public Works as beneficiary, with the guarantee period running from March 1, 2025, to December 31, 2025."
1. Parties: Identification of the Bank (Guarantor), the Principal (party requesting the guarantee), and the Beneficiary
2. Background: Context of the guarantee, including reference to the underlying transaction or obligation being guaranteed
3. Definitions: Key terms used throughout the guarantee document
4. Guarantee Amount: Specific amount being guaranteed and currency
5. Scope of Guarantee: Precise description of the obligations being guaranteed
6. Duration and Validity: Term of the guarantee, including effective date and expiry date
7. Conditions for Claim: Specific circumstances under which the guarantee can be called upon
8. Claim Procedure: Step-by-step process for making a claim under the guarantee
9. Bank's Obligations: Specific commitments and responsibilities of the guarantor bank
10. Governing Law and Jurisdiction: Confirmation of Indonesian law as governing law and jurisdiction for disputes
11. Notices: Communication procedures and contact details for all parties
12. Execution: Signature blocks and execution requirements
1. Counter Guarantee: Required when there is a counter-guarantee from another bank or financial institution
2. Foreign Exchange Provisions: Required when the guarantee involves foreign currency or cross-border elements
3. Assignment Restrictions: Include when transfer or assignment of guarantee rights needs to be restricted
4. Force Majeure: Include when specific force majeure provisions are required beyond standard law provisions
5. Anti-Money Laundering Compliance: Include for high-value guarantees or when required by bank policy
6. Step-In Rights: Include when the bank requires right to step into the underlying transaction
7. Partial Claims: Include when partial claims under the guarantee are to be permitted
1. Form of Demand: Template for making a claim under the guarantee
2. Supporting Documents: List and copies of all required supporting documentation
3. Fee Schedule: Details of bank fees, charges, and payment terms
4. Underlying Agreement Extract: Relevant excerpts from the underlying agreement being guaranteed
5. Specimen Signatures: Authorized signatures for all parties
6. Contact Details: Comprehensive contact information for all parties and their representatives
Authors
Banking and Financial Services
Construction and Infrastructure
International Trade
Manufacturing
Energy and Resources
Real Estate Development
Government and Public Sector
Telecommunications
Retail and Consumer Goods
Transportation and Logistics
Legal
Finance
Treasury
Risk Management
Compliance
Commercial
Project Management
Business Development
Trade Finance
Corporate Banking
Credit Risk
Operations
Chief Financial Officer
Finance Director
Treasury Manager
Legal Counsel
Risk Management Officer
Compliance Officer
Project Manager
Commercial Director
Contract Manager
Business Development Manager
Account Manager
Credit Risk Officer
Corporate Banking Manager
Trade Finance Manager
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