Bank Guarantee Format in Word

Sample Draft Template of Bank Guarantee (BG) Format for Security Deposit / Advance Payment in India for SBI , Punjab National Bank (PNB), ICICI, HSBC, AXIS, IDBI, HDFC Banks etc in .doc/ .pdf

DRAFT PROFORMA OF BANK GUARANTEE TO BE ISSUED

IN FAVOUR OF ROCKET SALES LTD

In consideration of Rocket Sales Ltd, Nirmal Building,24^th Floor, 4/1 Nariman Point, Mumbai – 421 120, having its Registered Office at Vill: KHAPOLI, Post & Distt : NAVI MUMBAI, Pin – 421 511 Maharashtra, INDIA and having a Branch Office also at …………… (hereinafter referred to as `Seller’, which expression shall unless executed by or repugnant to the subject or context, include its legal representatives, successors and assigns) having agreed to supply Hot Rolled Coils (hereinafter referred as `HRC`) to  ( M/s…………………………………….…. Name of the Purchaser), having its Office/Registered Office at …………………………. (Address of the Purchaser) (hereinafter referred to as the `Purchaser’, (a proprietary concern, a partnership firm, a public/private limited company – as the case may be) which expression shall unless excluded or repugnant to the subject or context include his/ours/its, heirs, executors/administrators, legal representatives/successors and assigns (as applicable) and the Purchaser being required and agreed to furnish the Security Deposit in the form of Bank Guarantee against the supply of HR Coils from time to time during the period of Bank Guarantee.

We, ………………………………………………………….( Name of the Bank )., having its registered office at  …………………………………………………………………….………. (Name of the Registered office of the BG issuing Bank) acting through its branch at …………………………………………………………. (Name of the Branch – opening the BG) (hereinafter called the Guarantor, which expression shall unless repugnant to the context or meaning thereof include its legal representatives, successors and assigns) do hereby irrevocably and unconditionally guarantee and undertake to pay the Seller at its place at Mumbai or of such other place or places as may be directed by the Seller all amounts payable by the Purchaser to the extent of Rs. ……….. ( Amount of the BG) (Rupees …………………………………………. (in words) at any time upto ………………… (Date of Expiry of the BG) subject to the following terms & conditions :

1.      The Guarantor shall pay to the Seller merely on demand and without any demur, delay, reservation, contest, recourse or protest and / or without any reference to the Purchaser as to whether the occasion or ground has arisen for such demand owing to default of payment by the Purchaser against the supply of HR Coils by the Seller. The decision of the Seller shall be final for determining default of the purchaser.

2.      The Seller shall have the fullest liberty without reference to the Guarantor and without affecting this guarantee to postpone at any time or from time to time the exercise of all or any of its powers and rights under arrangement made with the Purchaser, and the Guarantor shall not be released from this guarantee by any arrangement  between the Seller and the Purchaser or any alteration thereof made with or without the consent of the Guarantor or by exercise or non-exercise by the Seller of all or any of its powers and rights against the Purchaser, or any other forbearance, act or omission on the part of Seller or indulgence granted by or on behalf of the Seller to the Purchaser, which under the law would but for this provision have the effect of releasing the Bank as Guarantor from their obligations under this guarantee.

3.      The guarantee herein contained shall not be determined or affected or suspended by the liquidation or winding up, dissolution or change of constitution or insolvency of the Purchaser, but shall in all respects and for all intents and purposes be binding and operative until all monies due to the assurance in respect of all liability or liabilities of the Purchaser are fully paid.

4.      It is also agreed that Seller will be entitled at its option to enforce this guarantee against the Guarantor as principal debtor in the instance notwithstanding any other security or guarantee that the Seller may have in relation to the Purchaser’s liability.

5.      The Guarantee will remain valid for a period of ( No of Months )upto (Date of Expiry of BG).. as a security money from the date hereof and to such further period, as may be required and agreed by the Parties and agreed by the Guarantor before the expiry of the aforesaid validity.

6.      The Guarantee shall cover all claims or demand of Seller to the extent of the amount guaranteed.

7.      Notwithstanding anything contained, the liability of the Guarantor under this Agreement is restricted to Rs. …………..(Amount of BG) (Rupees …..…………… (Amount of BG in words) for supply of HR Coils by Seller to the Purchaser and the same shall remain in force upto …………….  and including the day of ……………. (date of xpiry of BG)

8.      This guarantee can be enforced by Seller any number of times for their claims or demand to the total extent of Rs. ………………….(Amount of BG) (Rupees In words )  as long as it remains in force.

9.      The Guarantor shall pay the Seller the claim under the Bank Guarantee notwithstanding any dispute raised by the Purchaser in any suit, or proceeding before any office, court or tribunal relating thereto.

10. Unless a demand or claim under this guarantee is received by the Guarantor within the period mentioned in clause 5 and 6 hereof, all rights of the Seller shall be forfeited and the Guarantor shall be relived or discharged from all liabilities.

11.  We, the Guarantor hereby undertake not to revoke the Guarantee during its currency except with the previous consent of the Sellers in writing.

“Notwithstanding anything contained herein our liability under this Guarantee shall not exceed Rs( Amount of BG)(Rupees In words)

This Bank Guarantee shall be valid upto ( Dt of expirty )

And we are liable to pay the guarantee amount or any part thereof under this Bank Guarantee only and only if you serve upon us a written claim or demand on or before ( Dt of BG).

• This guarantee is to be returned to us as soon as the purpose for which it is issued is fulfilled
• The BG confirmation No. ………………… is an integral part of the BG No…..

Signature of the Bankers

With date & Rubber Stamp

Bank Guarantee Format in Word Free Download