Sample Of A Bank Guarantee Agreement Used in Credit Control/ Management
Very often, we might need the customer to give some sort of collateral. One type which is strongly encouraged is the bank guarantee, a sample is provided below.
SAMPLE OF A BANK GUARANTEE
(UNDER THE BANK LETTERHEAD)
Date
Name & Address of the Company giving credit (say ABC Company)
Dear Sir,
BANK GUARANTEE NO
In consideration of you, ABC Company ( Name & Address) at our request agreed to supply computers and related accessories (hereinafter referred to as “the said supply”) to
………………………………………………………………………………………………..
(hereinafter referred to as “the customer”), we hereby agree with you as follows:-
We, ( Bank name & Address)
hereby guarantee to pay to you within fourteen (14) days of written demand and on the pre-condition that the proof of indebtedness is made available to us by way of delivery orders and invoices, all sum of the money which now or shall at any time by owing to you by the customer arising from or in connection with the said supply PROVIDED ALWAYS that the total liability ultimately enforceable against us under this Guarantee shall not exceed in aggregate that the sum of $…………………………………..
This Guarantee shall be a continuing Guarantee to you (within the limits aforesaid) for the whole amount which shall be due and owing to you by the customer which may have arisen from …………………(both dates inclusive) (hereinafter referred to as “the guarantee period”).
You may at any time, at your absolute discretion and without giving any notice whatsoever to us, refuse any of the said supply or any credit facilities to the customer and grant to him any time or other indulgence and compound with him without discharging or impairing our liability under this Guarantee.
Notwithstanding any other provisions herein before contained, if on the expiry of ninety(90) days after the date of expiry of this Guarantee or any subsequent renewed guarantee given by us, we have not received any demand from you, this Guarantee or any subsequent renewed guarantee as the case may shall be lapse and cease to have any effect whatsoever and we shall be deemed to be discharged and released from all and any liability under this Guarantee without prejudice however to any claim which you may make prior to the expiration of the said ninety day period.
Yours faithfully,
(Signed by Bank)
- Use The Corporate Guarantee Form When Granting Credit Facility To Your Customer Who Belongs To A Group of Companies
- Free Sample Director Agreement With The Company
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- Free Sample Standard Tenancy Agreement
- How To Be Proactive To Offer Alternatives For Marginal Customers Or Those Who Want To Increase The Credit Limit/Terms
- Credit Management: An Overview, its Importance and Characteristic of a Company having a well run credit management department
- Why Should Credit Limit Be Imposed.Is it necessary for the company to inform the customer about its credit limit and credit terms?
March 23, 2006
Tags: bank guarantee, Credit control, Credit management
Posted in: CREDIT MANAGEMENT/CONTROL
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