Sample Letter of Bank Guaranty 04.28.2023.docx

April 28, 2023

Contracting Officer U.S. Embassy, Santiago Avda. Andres Bello 2800 – Las Condes

Letter of Guaranty No. 19C18023R0001

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 another 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].

This sum 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 might 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 as identified in the contract.

The undersigned certifies that the guaranty is issued by a depository institution located in and authorized to do letters of guaranty in any state of the United States or the District of Columbia, and authorized to issue such checks or letter of Guaranty by the banking laws of the United States or any state of the United States.

Depository Institution: [NAME] Address:____________________ Location: ______________ Representative(s):_________________________

State of Inc.: ____________

Corporate Seal:

Certificate of Authority is attached evidencing authority of the signer to bind the bank to this document.