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Performance Bank Guarantee Format

This document is a performance bank guarantee format. It summarizes: 1) The bank guarantees to pay the President of India up to a maximum amount if the supplier fails to fulfill its contractual obligations to supply goods according to the contract. 2) The bank's obligations under this guarantee will not be affected by any changes to the supplier or the terms of the contract. 3) This guarantee is valid for a certain number of months from acceptance of goods or until all goods and documentation have been delivered, whichever is later.

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SRIHARI REDDI
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265 views

Performance Bank Guarantee Format

This document is a performance bank guarantee format. It summarizes: 1) The bank guarantees to pay the President of India up to a maximum amount if the supplier fails to fulfill its contractual obligations to supply goods according to the contract. 2) The bank's obligations under this guarantee will not be affected by any changes to the supplier or the terms of the contract. 3) This guarantee is valid for a certain number of months from acceptance of goods or until all goods and documentation have been delivered, whichever is later.

Uploaded by

SRIHARI REDDI
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Performance Bank Guarantee Format

From:
Bank
To
The President of India
Ministry of Defence,
Government of India
New Delhi.

Dear Sir,

1. Whereas you have entered into a contract No.________________ dated (hereinafter referred to as the said
Contract) with M/s__________________________________________________ , hereinafter referred to as
the “seller” for supply of goods as per Part-II of the said contract to the said seller and whereas the Seller has
undertaken to produce a bank guarantee for (%) of total Contract value amounting to____________________
to secure its obligations to the President of India. We the _______________________bank hereby expressly,
irrevocably and unreservedly undertake and guarantee as principal obligors on behalf of the seller that, in the
event that the President of India declares to us that the goods have not been supplied according to the
Contractual obligations under the aforementioned contract, we will pay you, on demand and without demur,all
and any sum up to a maximum of_____________ Rupees_________________only. Your written demand
shall be conclusive evidence to us that such repayment is due under the terms of the said contract. We
undertake to effect payment upon receipt of such written demand.

2. We shall not be discharged or released from this undertaking and guarantee by any arrangements, variations
made between you and the Seller. indulgence to the Seller by you. or by any alterations in the obligations of
the Seller or by any forbearance whether as to payment, time performance or otherwise.

3. In no case shall the amount of this guarantee be increased.

4. This guarantee shall remain valid for ___________________ months from the date of JRI acceptance of test

consignment in India or until all the store, spares and documentation have been supplied according to the
contractual obligations under the said contract.

5. Unless a demand or claim under this guarantee is made on us in writing or on before the aforesaid expiry
date as provided in the above referred contract or unless this guarantee is extended by us, all your rights under
this guarantee shall be forfeited and we shall be discharged from the liabilities hereunder.

6. This guarantee shall be a continuing guarantee and shall not be discharged by and change in the constitution
of the Bank or in the constitution of M/s__________________________________________________

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