Document background
The Revolving Bank Guarantee is a specialized financial instrument used when parties require an ongoing security arrangement that can be utilized multiple times. This document is particularly relevant in situations where there are recurring performance obligations or regular trading activities that need continuous financial backing. Under Dutch law, these guarantees must comply with specific requirements of the Dutch Civil Code and Financial Supervision Act. The document typically includes detailed provisions about the maximum guarantee amount, reinstatement mechanisms, conditions for demands, fee structures, and compliance requirements. It's commonly used in commercial contracts where the beneficiary needs ongoing assurance of the applicant's financial capacity to meet its obligations, with the flexibility to make multiple drawings up to the facility limit.
