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Standby Guarantee Template for New Zealand

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Key Requirements PROMPT example:

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."

Document background
The Standby Guarantee is a crucial financial instrument in New Zealand's commercial landscape, providing security for various business obligations and transactions. It serves as an independent payment undertaking, typically issued by banks or financial institutions, to support commercial contracts, construction projects, and international trade transactions. The document is structured to comply with New Zealand's Contract and Commercial Law Act 2017 and related legislation, incorporating both local legal requirements and international banking practices. A Standby Guarantee is particularly valuable when parties seek a reliable, enforceable mechanism to secure performance or payment obligations, offering beneficiaries a straightforward means of obtaining payment upon presentation of compliant documents, without needing to prove actual damages or pursue court action.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses






























Relevant Industries

Banking and Financial Services

Construction and Infrastructure

International Trade

Energy and Resources

Manufacturing

Real Estate Development

Telecommunications

Mining

Engineering Services

Government and Public Sector

Relevant Teams

Legal

Finance

Treasury

Risk Management

Commercial Operations

Trade Finance

Corporate Banking

Project Management

Compliance

Credit Risk

Relevant Roles

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

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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