Common use of Bank Guarantee for Advance Payment Clause in Contracts

Bank Guarantee for Advance Payment. [The bank, as requested by the successful Bidder, shall fill in this form in accordance with the instructions indicated.] Date: [insert date (as day, month, and year) of Bid Submission] ONB No. and title: [insert number and title of bidding process] [bank’s letterhead] Beneficiary: [insert legal name and address of Procuring Entity] ADVANCE PAYMENT GUARANTEE No.: [insert Advance Payment Guarantee no.] We, [insert legal name and address of bank], have been informed that [insert complete name and address of Supplier] (hereinafter called "the Supplier") has entered into Contract No. [insert number] dated [insert date of Agreement] with you, for the supply of [insert types of Goods to be delivered] (hereinafter called "the Contract"). Furthermore, we understand that, according to the conditions of the Contract, an advance is to be made against an advance payment guarantee. At the request of the Supplier, we hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of [insert amount(s)3 in figures and words] upon receipt by us of your first demand in writing declaring that the Supplier is in breach of its obligation under the Contract because the Supplier used the advance payment for purposes other than toward delivery of the Goods. It is a condition for any claim and payment under this Guarantee to be made that the advance payment referred to above must have been received by the Supplier on its account [insert number and domicile of the account] This Guarantee shall remain valid and in full effect from the date of the advance payment received by the Supplier under the Contract until [insert date4]. This Guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 458. _____________________ [signature(s) of authorized representative(s) of the bank]

Bank Guarantee for Advance Payment. To Managing Director, ASTC Paltanbazar,Guwahati-08 [The bank, as requested by the successful Bidder, shall fill in this form in Name of Contractor] Gentlemen: In accordance with the instructions indicated.] Date: [insert date provisions of contract, sub-clause 51.1 (as day, month, and year"Advance Payment") of Bid Submission] ONB No. and title: [insert number and title of bidding process] [bank’s letterhead] Beneficiary: [insert legal name and address of Procuring Entity] ADVANCE PAYMENT GUARANTEE No.: [insert Advance Payment Guarantee no.] Wethe above mentioned Contract, [insert legal name Name and address Address of bank], have been informed that [insert complete name and address of Suppliercontractor] (hereinafter called "the SupplierContractor") has entered into Contract No. shall deposit with [insert numberName of Employer] dated [insert date of Agreement] with you, for a bank guarantee to guarantee his proper and faithful performance under the supply of [insert types of Goods to be delivered] (hereinafter called "the Contract"). Furthermore, we understand that, according to the conditions said Clause of the Contract, an advance is to be made against an advance payment guarantee. At the request of the Supplier, we hereby irrevocably undertake to pay you any sum or sums not exceeding Contract in total an amount of [insert amount(s)3 amount of Guarantee] Rs. Rupees [in figures words]. We, the [bank of financial institution], as instructed by the Contractor, agree unconditionally and wordsirrevocably to guarantee as primary obligator and not as surely merely, the payment to [name of Employer] upon receipt by us of your on his first demand without whatsoever right of obligator on our part and without his first claim to the Contractor, in writing declaring the amount not exceeding [amount of guarantee]* [in words]. We further agree that no change or addition to or other modification of the Supplier is in breach terms of its obligation the Contractor or Works to be performed there under or any of the Contract because the Supplier used the advance payment for purposes other than toward delivery documents which may be made between [Name of the Goods. It is a condition for Employer] and the Contractor, shall in any claim and payment way release us from any liability under this Guarantee to be made that the advance payment referred to above must have been received by the Supplier on its account [insert number guarantee, and domicile we hereby waive notice of the account] any such change, addition or modification. This Guarantee guarantee shall remain valid and in full effect from the date of the advance payment received by the Supplier under the Contract until [insert date4]. This Guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 458. _____________________ [signature(s) of authorized representative(s) name of the bank]Employer] receives full repayment of the same amount from the Contractor. Yours Truly, Signature and Seal Name of Bank/ Financial Institution: Address: Date: An amount shall be inserted by the Bank or Financial Institution representing the amount of the Advance Payment, and denominated in Indian Rupees INDENTURE FOR SECURED ADVANCES [FORM 31]‌ (For use in cases in which the contract is for finished work and the contractor has entered into an agreement for the execution of a certain specified quantity of work in a given time) This indenture made the day of , 20 BETWEEN (hereinafter called the contractor which expression shall where the context so admits or implies be deemed to include his executors, administrators and assigns) or the one part and the Employer of the other part.

Bank Guarantee for Advance Payment. [The bank, as requested by the successful Bidderbidder, shall fill in this form in accordance with the instructions indicated.] indicated on its own Letter Head Date: [insert date (as day, month, and year) of Bid Submission] ONB year RFP Contract No. and title: [insert number and title of bidding process] [bankprocess Bank’s letterhead] Branch or Office: insert complete name of Guarantor Beneficiary: [insert legal name and address of Procuring Entity] Principal ADVANCE PAYMENT GUARANTEE No.: [insert Advance Payment Guarantee no.] . We, [insert legal name and address of bank], have been informed that [insert complete name and address of Supplier] consultant (hereinafter called "the Supplierconsultant") has entered into Contract No. [insert number] number dated [insert date of Agreement] Agreement with you, for the supply of [insert types of Goods to be delivered] services (hereinafter called "the Contract"). Furthermore, we understand that, according to the conditions of the Contract, an advance is to be made against an advance payment guarantee. At the request of the Supplierservices provider, we as guarantor hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of [insert amount(s)3 amount(s)5 in figures and words] words upon receipt by us of your first demand in writing declaring that the Supplier services provider is in breach of its obligation under the Contract because the Supplier services provider used the advance payment for purposes other than toward delivery of the Goodsgeneral services. It is a condition for any claim and payment under this Guarantee to be made that the advance payment referred to above must have been received by the Supplier services provider on its account [insert number and domicile of the account] . The maximum amount of this guarantee shall be progressively reduced by the amount of the advance payment repaid by the services provider as specified in copies of interim statements or payment certificates which shall be presented to us. This guarantee shall expire, at the latest, upon our receipt of a copy of the interim payment certificate indicating that ninety (90) percent of the Accepted Contract Amount, has been certified for payment, or on the [insert date], whichever is earlier. Consequently, any demand for payment under this guarantee must be received by us at this office on or before that date. This Guarantee shall remain valid and in full effect from the date of the advance payment received by the Supplier services provider under the Contract until [insert date4]date6. This Guarantee is subject to the Uniform Rules for Demand Guarantees, ICC International Chamber of Commerce Publication No. 458758. _____________________ [signature(s) ……………………………………………………………………… Authorised Signatures for Bank and services provider 1 “Another party” refers to a public official acting in relation to the selection process or contract execution. In this context, “public official” includes Government staff and employees of authorized representative(s) of the bank]other organisations taking or reviewing procurement decisions.

Bank Guarantee for Advance Payment. [The bank, as requested by the successful Bidderbidder, shall fill in this form in accordance with the instructions indicated.] indicated on its own Letter Head Date: [insert date (as day, month, and year) of Bid Submission] ONB year RFP Contract No. and title: [insert number and title of bidding process] [bankprocess Bank’s letterhead] Branch or Office: insert complete name of Guarantor Beneficiary: [insert legal name and address of Procuring Entity] Principal ADVANCE PAYMENT GUARANTEE No.: [insert Advance Payment Guarantee no.] . We, [insert legal name and address of bank], have been informed that [insert complete name and address of Supplier] consultant (hereinafter called "the Supplierconsultant") has entered into Contract No. [insert number] number dated [insert date of Agreement] Agreement with you, for the supply of [insert types of Goods to be delivered] services (hereinafter called "the Contract"). Furthermore, we understand that, according to the conditions of the Contract, an advance is to be made against an advance payment guarantee. At the request of the Supplierservices provider, we as guarantor hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of [insert amount(s)3 amount(s)5 in figures and words] words upon receipt by us of your first demand in writing declaring that the Supplier services provider is in breach of its obligation under the Contract because the Supplier services provider used the advance payment for purposes other than toward delivery of the Goodsgeneral services. It is a condition for any claim and payment under this Guarantee to be made that the advance payment referred to above must have been received by the Supplier services provider on its account [insert number and domicile of the account] . The maximum amount of this guarantee shall be progressively reduced by the amount of the advance payment repaid by the services provider as specified in copies of interim statements or payment certificates which shall be presented to us. This guarantee shall expire, at the latest, upon our receipt of a copy of the interim payment certificate indicating that ninety (90) percent of the Accepted Contract Amount, has been certified for payment, or on the [insert date], whichever is earlier. Consequently, any demand for payment under this guarantee must be received by us at this office on or before that date. This Guarantee shall remain valid and in full effect from the date of the advance payment received by the Supplier services provider under the Contract until [insert date4]date6. This Guarantee is subject to the Uniform Rules for Demand Guarantees, ICC International Chamber of Commerce Publication No. 458758. _____________________ [signature(s) ……………………………………………………………………… Authorised Signatures for Bank and services provider 1 “Another party” refers to a public official acting in relation to the selection process or contract execution. In this context, “public official” includes Government staff and employees of authorized representative(s) of the bank]other organizations taking or reviewing procurement decisions.