In the field of international business, bank guarantees play a significant role in ensuring smooth transactions and minimizing financial risks. One such type of guarantee is the advance payment guarantee or prepayment bond. In this article, we will provide you with an English template for a bank advance payment guarantee.
[Bank's Name & Address]
[Guarantee Ref. No.:]
[Date:]
[Beneficiary's Name]
[Beneficiary's Address]
[Contact Person & Position]
[Phone Number]
[Applicant's Name]
[Applicant's Address]
[Contact Person & Position]
[Phone Number]
This is to certify that we, [Bank's Name], hereby issue this Advance Payment Guarantee (APG) on behalf of our customer, [Applicant's Name], in favor of the beneficiary, [Beneficiary's Name]. The purpose of this guarantee is to ensure the timely payment of any advance amount made by the beneficiary to the applicant.
The total guaranteed amount under this APG is [Amount in Words] ([Amount in Numbers]), representing the maximum amount payable by [Bank's Name] to the beneficiary in case of non-payment or default by the applicant.
[Bank's Name] guarantees to pay the beneficiary any valid claim made under this APG, provided that:
a) The beneficiary submits a written claim stating that the applicant has failed to repay the advance payment as per the agreed terms.
b) The beneficiary provides all necessary documentary evidence to support the claim within [number of days] from the date of default.
c) The total amount claimed does not exceed the guaranteed amount mentioned in this APG.
d) The claim and supporting documents are presented to [Bank's Name] within [number of days] from the expiry date of this APG.
This guarantee shall be governed by and construed in accordance with the laws of [Country Name]. Any dispute arising out of or in connection with this guarantee shall be submitted to the exclusive jurisdiction of the courts of [City Name].
We trust that this template will serve as a useful guide in drafting an effective bank advance payment guarantee. However, it is important to consult with legal advisors and customize the content as per your specific requirements and jurisdiction.
