19BY7026Q0002 BankGuaranteeLetter.docx
DOCX document 25 KB Posted
- Attached to
- Water Well Drilling Project at California Hotel
- Solicitation number
- 19BY7026Q0002
- Issued by
-
Department of State
About this file
This is a sample letter of bank guaranty template for use in federal contracting. The letter establishes a bank's guarantee to pay the Contracting Officer on demand for performance and payment bonds related to a specific contract. The guaranty amount is structured in two tiers: 20% of the contract price during the period ending with final acceptance, and 10% of the contract price during the contract guaranty period thereafter. The bank agrees to make immediate payment by check to the Treasurer of the United States upon receipt of a written request from the Contracting Officer, without requiring protest, legal action, contractor consent, or other proof. The guaranty includes a 10% per annum interest charge on any called amount, calculated from the sixth day following the Contracting Officer's written request until payment is made.
The letter permits the Contracting Officer to modify the underlying contract through Change Orders or Supplemental Agreements without affecting the guaranty validity, and authorizes repeated partial demands on the guaranty up to its total amount. The bank must honor each individual demand promptly. The guaranty remains in effect for three months following completion of the contract's guaranty period. The template requires completion with specific information including the contracting officer's details, the guarantee letter number, the guaranteed amount, contract number, description of work, work location, contractor name and address, contract date, financial institution details, authorized representatives, and a certificate of authority evidencing the signer's authority to bind the bank.
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Other files
| File | Type | Posted |
|---|---|---|
| 19BY7026Q0002 Specifications.png | PNG image | |
| 19BY7026Q0002 DRAWINGS.docx | DOCX document | |
| 19BY7026Q0002 PriceBreakDown.docx | DOCX document | |
| 19BY7026Q0002_Solicitation_Document.pdf | ||
| 19BY7026Q0002_PreSolicitation_SAM_ Notice.pdf |
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Text version
ATTACHMENT #1 - SAMPLE LETTER OF BANK GUARANTY
| Place [ ] |
| Date [ ] |
Contracting Officer U.S. Embassy, Bujumbura 50, Avenue des Etats-Unis Kigobe Sud Bujumbura, Burundi Letter of Guaranty No. _______ SUBJECT: Performance and Guaranty
The Undersigned, acting as the duly authorized representative of the bank, declares that the bank hereby guarantees to make payment to the Contracting Officer by check made payable to the Treasurer of the United States, immediately upon notice, after receipt of a simple written request from the Contracting Officer, immediately and entirely without any need for the Contracting Officer to protest or take any legal action or obtain the prior consent of the Contractor to show any other proof, action, or decision by an other authority, up to the sum of [amount equal to 20% of the contract price in U.S. dollars during the period ending with the date of final acceptance and 10% of the contract price during contract guaranty period], which represents the deposit required of the Contractor to guarantee fulfillment of his obligations for the satisfactory, complete, and timely performance of the said contract [contract number] for [description of work] at [location of work] in strict compliance with the terms, conditions and specifications of said contract, entered into between the Government and [name of contractor] of [address of contractor] on [contract date], plus legal charges of 10% per annum on the amount called due, calculated on the sixth day following receipt of the Contracting Officer’s written request until the date of payment.
The undersigned agrees and consents that said contract may be modified by Change Order or Supplemental Agreement affecting the validity of the guaranty provided, however, that the amount of this guaranty shall remain unchanged.
The undersigned agrees and consents that the Contracting Officer may make repeated partial demands on the guaranty up to the total amount of this guaranty, and the bank will promptly honor each individual demand.
This letter of guaranty shall remain in effect until 3 months after completion of the guaranty period of Contract requirement.
| Depository Institution: |
| [name] |
Address:
Representatives:
Location:
State of Inc.:
Corporate Seal:
Certificate of Authority is attached evidencing authority of the signer to bind the bank to this document.
File details come from the government source that posted it. Updated .