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The Standby Guarantee is a crucial financial instrument used in commercial transactions where one party seeks financial security for the performance obligations of another party. This document is particularly relevant when dealing with cross-border transactions involving Dutch entities or where parties choose Dutch law as the governing law. The guarantee provides an independent, irrevocable commitment from a bank to pay upon presentation of compliant documents, offering a robust security mechanism. It typically includes detailed provisions on the guarantee amount, validity period, demand conditions, and documentary requirements. Under Dutch law, these guarantees are governed by both local legislation (particularly the Dutch Civil Code) and international banking practices (ISP98), making them highly standardized and internationally recognized instruments. The document is commonly used in various commercial contexts, from securing payment obligations to backing performance commitments in large contracts.

1. Issuing Bank Details: Full name and address of the bank issuing the guarantee

2. Beneficiary Details: Complete identification of the party in whose favor the guarantee is issued

3. Guarantee Number: Unique reference number of the guarantee

4. Underlying Transaction: Reference to the primary contract or obligation being guaranteed

5. Guarantee Amount: The maximum amount payable under the guarantee and currency

6. Effective Date: Date from which the guarantee becomes effective

7. Expiry Details: Expiry date or conditions and place of expiry

8. Payment Terms: Conditions for demand and payment under the guarantee

9. Form of Demand: Specific requirements for making a valid demand under the guarantee

10. Governing Law and Jurisdiction: Specification of Dutch law and relevant jurisdiction

11. Applicable Rules: Reference to ISP98 or other applicable rules