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Bank Guarantee Procedure

The borrower arranges for a bank confirmation letter from a prime European or American bank as a guarantee. The guarantee must follow the format in Annexure 1 and be reconfirmed by a corresponding bank in the UK or USA if from a local bank. Upon verifying the pre-advise and arrangement letter, the guaranteeing bank will send the operative guarantee to the transaction bank. The guarantee is valid for one year plus one month and is extendable until construction ends or the project starts repayment. The bank undertakes to extend the guarantee 10 days before maturity.

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Latiff Ibrahim
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218 views

Bank Guarantee Procedure

The borrower arranges for a bank confirmation letter from a prime European or American bank as a guarantee. The guarantee must follow the format in Annexure 1 and be reconfirmed by a corresponding bank in the UK or USA if from a local bank. Upon verifying the pre-advise and arrangement letter, the guaranteeing bank will send the operative guarantee to the transaction bank. The guarantee is valid for one year plus one month and is extendable until construction ends or the project starts repayment. The bank undertakes to extend the guarantee 10 days before maturity.

Uploaded by

Latiff Ibrahim
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BANK GUARANTEE PROCEDURES

The Borrower arranges a Bank Confirmation Letter as per EXHIBIT from Guarantee issuing bank.

The Guarantee issuing Bank is a Prime European/American Bank

The Bank Guarantee should be strictly as per Annexure-I. Please Refer Text of Re-confirmation

In the event the Bank Guarantee is issued from a local bank, the same to be re-confirmed by its CORRESPONDING BANK in UK/USA. Bank Confirmation Letter & Preadvise of Bank Guarantee are received by CANFIMS Transaction Bank which will be one of the TOP 50 BANKS

A Commitment Letter is issued from CANFIMS Transaction Bank confirming that the said Bank Guarantee will be returned unencumbered, without any lien upon maturity.

Upon Pre-advise Bank Guarantee is verified and Commitment Letter is arranged, the Guarantee issuing Bank transmit/send Operative Bank Guarantee to our Transaction Bank.

The Bank Guarantee shall be issued for One year plus One Month & extendable until the end of Construction/Moratorium Period or the Project starts repayment of Finance assistance.

The Issuing Bank undertakes with full responsibility to extend the Bank Guarantee 10 days prior to the date of maturity.

The First installment of Finance Assistance Starts within 30 international Banking Days, which shall be, 5%-10% of the Project Costs and/or as per the agreed project implementation schedules thereafter.

THE BANK GUARANTEE IS RETURNED UPON MATURITY

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