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Standby Guarantee
"I need a Standby Guarantee for a construction project in Auckland, where my company is the beneficiary, with ANZ Bank as guarantor for NZD 5 million, expiring on 30 June 2025, with the ability to make partial demands and electronic presentations."
1. Parties: Identification of the Guarantor (typically a bank or financial institution) and the Beneficiary
2. Background: Context of the underlying transaction and purpose of the guarantee
3. Definitions: Key terms used in the guarantee including 'Guaranteed Obligations', 'Demand', 'Expiry Date'
4. Guarantee and Payment Obligation: Core obligation of the guarantor to pay upon compliant demand
5. Maximum Liability: The maximum amount payable under the guarantee
6. Demand Requirements: Format, content and documentary requirements for making a valid demand
7. Payment Terms: Timing and method of payment upon receipt of compliant demand
8. Reduction and Release: Circumstances under which the guarantee amount may be reduced or the guarantee released
9. Expiry: Duration of the guarantee and conditions for expiry
10. Transferability: Whether and how the guarantee may be transferred
11. Governing Law and Jurisdiction: Specification of New Zealand law and jurisdiction for disputes
1. Counter-Indemnity: Used when there is a separate counter-indemnity from the applicant to the guarantor
2. Multiple Beneficiaries: Required when there is more than one beneficiary, specifying their rights and relationships
3. Assignment: Detailed provisions for assignment if this is to be permitted
4. Partial Demands: Include when multiple partial demands are to be permitted
5. Special Payment Conditions: Any specific conditions or requirements for payment beyond standard demand
6. Electronic Presentations: Include if demands can be made electronically
7. Force Majeure: Specific provisions for force majeure events affecting the guarantee
8. Language of Demands: Required if demands in languages other than English are permitted
1. Form of Demand: Template for making a compliant demand under the guarantee
2. Form of Reduction Certificate: Template for reducing the guarantee amount (if applicable)
3. Required Supporting Documents: List and formats of documents required to accompany a demand
4. Authorized Signatories: List of persons authorized to sign demands on behalf of the beneficiary
5. Fee Schedule: Schedule of fees and charges (if applicable)
6. Underlying Contract Details: Key details of the underlying contract or obligation being guaranteed
Authors
Banking and Financial Services
Construction and Infrastructure
International Trade
Energy and Resources
Manufacturing
Real Estate Development
Telecommunications
Mining
Engineering Services
Government and Public Sector
Legal
Finance
Treasury
Risk Management
Commercial Operations
Trade Finance
Corporate Banking
Project Management
Compliance
Credit Risk
Treasury Manager
Chief Financial Officer
Finance Director
Legal Counsel
Contract Manager
Risk Manager
Trade Finance Manager
Project Manager
Commercial Director
Banking Relationship Manager
Corporate Finance Manager
Compliance Officer
Credit Risk Officer
Transaction Banking Officer
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