ATT 7 BANK LETTER OF GUARANTY TEMPLATE.docx

Attachment 7

BANK LETTER OF GUARANTEE SAMPLE

(BANK LETTERHEAD)

US Army Corps of Engineers Europe District Konrad Adenauer Ring 39, Box 7 ATTN: Contracting Officer 65187 Wiesbaden, Germany

LETTER OF GUARANTY NUMBER:_______________ DATE:_________

I/We, the undersigned, acting as the duly authorized representative of the Bank, declare that the Bank hereby guarantees and is jointly and severally liable as the guarantor with the Contractor named below, to effect payment to the Contracting Office by wire transfer or check made payable to the Treasury of the United States, within seven (7) calendar days after receipt of a simple request, by registered mail, from the Contracting Officer designated in the contract described below, or his successor, 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, or for any other proof, action or decision by any other authority, up to the sum (AMOUNT EQUAL TO TEN PERCENT (10%), which represents the deposit required of the Contractor to guarantee fulfillment of its obligation for the satisfactory completion and timely performance of the work under Contract No. W912GB25CXXXX for construction of Munitions Storage Area (MSA) award dated (AWARD DATE) at Powidz, Poland, in strict compliance with the terms and conditions of said contract, entered into between the United States of America and the Contractor, plus legal interest to be calculated from the date of receipt of the Contracting Officer’s registered letter request until the date of payment. Registered letter request shall inform the Bank that the Contractor failed to comply with the terms and conditions of the contract, or did not fulfill his undertaking in whole or in part.

I/We agree and consent that said contract may be modified by change order or supplemental agreement, affecting the contract amount and/or time of performance without prior consent of the bank and without affecting the validity of this guaranty; provided, however, that the amount of this guaranty shall be adjusted as required under the provisions of contract clause 52.228-2 Additional Bond Security (Oct 1997).

This letter of guaranty will continue in effect without change in amount or terms until the work has been finally accepted by the Government, and will continue thereafter in an amount equal to FIVE (5%) percent of the original contract price and any modifications thereto, until all applicable guarantees, or extensions thereof under the contract, have expired.

NAME & ADDRESS OF THE BANK

Signed By: ___________________________

TYPE NAME UNDERNEATH SIGNATURE)

Title:___________________________

Endorsement By:___________________________

(TYPE NAME UNDERNEATH SIGNATURE)

Title:___________________________

NOTE: Certificate of Authority is attached evidencing authority of the signers to bind the bank in this document.

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