J10 Bank Guarantee Template SRG2 final.pdf

Bank Guarantee for Advance Payment

Bank Guarantee for Advance Payment

Guarantor:____________________________________ [Insert commercial Bank’s Name, and Address of Issuing Branch or Office]

Beneficiary: United States Agency for International Development, Malawi (USAID, Malawi), [ address of Client]

Date:___________________________ [Insert date]

Advance Payment Guarantee No.___________________ [Insert number]

We have been informed that ________________________ [name of Contractor or a name of the Joint

Venture, same as appears on the signed Contract] (hereinafter called “the Contractor”) has entered into

Contract No.____________________ [reference number of the contract] dated ________________

[insert date] with Beneficiary, for the provision of Secondary Education Expansion for Development

(SEED), Rural Group 1 Construction Services (hereinafter called “the Contract”).

Furthermore, we understand that, according to the terms and conditions of the Contract, an Advance

Payment in the sum of $__________________ [insert amount in figures](_____) [insert amount in words] is to be made against an Advance Payment Guarantee.

At the request of the Contractor, we, as Guarantor, hereby irrevocably undertake to pay the Beneficiary any sum or sums not exceeding in total an amount of ______________ [insert amount in figures](_____) [insert amount in words] upon our receipt of the Beneficiary’s complying demand supported by the Beneficiary’s written statement, whether in the demand itself, or in a separate signed document accompanying or identifying the demand, stating that the Contractor is in breach of their obligation under the Contract because the Contractor has failed to repay the advance payment, in accordance with the terms and conditions of the Contract, specifying the amount that the Contractor has filed to repay.

It is a condition for any claim and payment under this Guarantee to be made that the Advance Payment, referred to herein, must have been received by the Contractor on their account number ____________ at ________________________ [insert name and address of bank].

The maximum amount of this Guarantee shall be progressively reduced by the amount of the Advance

Payment repaid by the Contractor as indicated in certified statements or invoices marked as “paid” by the Client that shall be presented to us. This guarantee shall expire, at the latest, upon our receipt of the payment certificate or paid invoice indicating that the Contractor has made full repayment of the amount of the Advance Payment, or on the ___ day of ___________ [month], ____________ [year], whichever is earlier. Consequently, we must receive any demand for payment under this Guarantee, at this office, on or before that date.

Signature(s)

Note: All italicized text is for indicative purposes only to assist in preparing this form and shall be deleted from the final product.