Advance Payment Security. (On letterhead paper of the Bank ) …………………………….. Bank’s Name, and Address of Issuing Branch or Office.................... Beneficiary Name and address of employer Date : ………………………………… Advance Payment Guarantee No…………………………….. We have been informed that ………………has entered into Contract No. ..... Name and Address of Employer………………name of the Contractor……………(hereinafter called "the Contractor")..reference number of the Contract……………dated …………… with you, for the execution of ...contract and brief description of Works (hereinafter called "the Contract"). Furthermore, we understand that, according to the Conditions of the Contract, an advance payment in the sum……………. name of the currency and amount in figures*…(.... amount in words ) is to be made against an advance payment guarantee. At the request of the Contractor, we....................................... name of the Bank hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of………………….name of the currency and amount in figures*.................................. .(…… amount in words ... ...................................................................................) upon receipt by us of your first demand in writing accompanied by a written statement stating that the Contractor is in breach of its obligation under the Contract because the Contractor used the advance payment for purposes other than the costs of mobilization in respect of the Works. The maximum amount of this guarantee shall be progressively reduced by the amount of the advance payment repaid by the Contractor as indicated 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 eighty (80) percent of the Contract Price has been certified for payment, or on the ....... day of ......**, 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 is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758. …………………………………………………… Seal of Bank and Signature(s) Note: All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the final document. *The Guarantor shall insert an amount representing the amount of the advance payment in Nepalese Rupees of the advance payment as specified in the Contract. ** Insert...
