Letter of Guarantee (Wording) URDG785

BANK GUARANTEE WORDING

EXAMPLE: URDG 758

This is provided for information purposes only.

 

Amount  : € [AMOUNT] EURO

(in words                  :      [AMOUNT IN WORDS]  )

We have been informed that you concluded on [DATE] a contract number [CONTRACT NUMBER] with [OUR CLIENT/ACCOUNT HOLDER] for the provision of services at a total price of [AMOUNT]. According to this contract, payment of the services has to be secured by a bank guarantee.

This being stated, we, [BANK] irrespective of the validity and legal effects of the above-mentioned contract and waiving all rights of objection and defence arising therefrom, hereby irrevocably undertake to pay to you, upon your first demand, any amount up to the above mentioned maximum amount, upon receipt of;

Your duly signed request for payment in original stating that;

a) you have provided the transaction confirmation in conformity with the terms of the contract and;

b) you have not received payment at the due date in the amount claimed under this guarantee.

For the purpose of identification your written request for payment must bear or be accompanied by a signed confirmation of one of our correspondent banks stating that the latter has verified your signature(s) appearing on the said request for payment.

Your claim is also acceptable if transmitted to us in full by authenticated SWIFT through one of our correspondent banks confirming that your original claim has been forwarded to us by registered mail or courier service and that the said bank has verified your signature(s) appearing thereon.

In case that at the time of a request for payment under this guarantee, there is a valid list of authorized signatures with a branch of [BANK] in [JURISDICTION] regarding the persons signing for you, the verification of signature(s) by a third bank is not required. In such case, your request for payment must be presented to us duly signed in writing (SWIFT excluded).

Our guarantee is valid until [DATE + 60 days] and expires in full and automatically, should your original written request for payment or the authenticated SWIFT not be in our possession at our above address on or before that date, regardless of such date being a banking day or not.

Our guarantee will be reduced by each payment made by us as a result of a claim.

This guarantee is governed by [JURISDICTION] law, place of jurisdiction and performance is [JURISDICTION].