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Bank Guarantee Format For Security Deposit

1) The document is a bank guarantee format for providing a guarantee against a security deposit by a company to a beneficiary. 2) The bank agrees to pay the beneficiary up to a specified amount if the company breaches the terms of their agreement, without requiring proof of breach from the beneficiary. 3) The bank guarantee remains valid for a defined period or until the beneficiary certifies the agreement terms have been fulfilled, and the bank agrees not to revoke the guarantee during this time.

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Rajesh Kumar
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486 views3 pages

Bank Guarantee Format For Security Deposit

1) The document is a bank guarantee format for providing a guarantee against a security deposit by a company to a beneficiary. 2) The bank agrees to pay the beneficiary up to a specified amount if the company breaches the terms of their agreement, without requiring proof of breach from the beneficiary. 3) The bank guarantee remains valid for a defined period or until the beneficiary certifies the agreement terms have been fulfilled, and the bank agrees not to revoke the guarantee during this time.

Uploaded by

Rajesh Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BANK GUARANTEE FORMAT FOR SECURITY DEPOSIT

Guarantee No…………………………………………………………….

Amount of Guarantee Rs……………………………………………….

Guarantee cover from Dated: ………………………………………….

To Dated: ………………………………………………………………….

Last Date for Lodgment of claim: …………………………………….

To:

………………………………………………

………………………………………………

………………………………………………

………………………………………………

In consideration of ……………………………………… (hereinafter called "Beneficiary") having


agreed to exempt …………………………………. Ltd., having its Registered Office situated
at ………………………………. (hereinafter called the "the obligator(s)") from the demand
of security deposit of Rs…………………… (Rupees …………………………………………………. only)
under the terms and conditions of an agreement dated …………………. (hereinafter
called the "said Agreement") for the due fulfillment by the said obligator of the terms
and conditions contained in the said agreement, on production of the Bank Guarantee
for Rs…………………. (Rupees ………………………………… only), at the request of the obligator
______ Bank, a body corporate constituted under the Banking Companies (Acquisition
& Transfer of undertakings) Act, 1970 having its Head Office at _____________
amongst others a branch at ……………………… (hereinafter referred to as "the Bank") has
agreed to give following guarantee in favor of the beneficiary for an amount not
exceeding Rs……………….. (Rupees ………………………………………………………. only) against
any loss or damage caused to or suffered or would be caused to or suffered by reason
of any breach by the said Obligator(s) of any of the terms and conditions contained in
the said agreement.
1. We, the Bank to hereby undertake to pay the amount payable under this
guarantee without any demur merely on a demand from the beneficiary
stating that the amount claimed is due by way of loss or damage caused to
or would be caused to or suffered by reason or any breach of the terms and
conditions contained in the said agreement or by reason of the obligator's
failure to perform the said agreement. Any such demand in writing made
on the Bank shall be conclusive as regards the amount due and payable by
the Bank under the guarantee. However, our liability under this guarantee
shall be restricted to an amount not exceeding Rs……………………………….

2. We, the Bank further agree that the guarantee herein contained shall
remain in full force and effect during the period that would be taken for
the performance of the said agreement and that it shall continue to be
enforceable till all the dues of the beneficiary under or by virtue of the
said agreement have been fully paid and its claims satisfied or till the
beneficiary certifies that the terms and conditions of the said agreement
have been fully discharged this guarantee. Unless a demand for claim
under this guarantee is made on us in writing on or before …………………………
we shall be discharged from all liabilities under this guarantee thereafter.

3. We, the Bank further agree that the beneficiary shall have the fullest
liberty, without consent and without effecting in any manner or obligations
hereunder, to extend time of performance the said obligator(s) from time
to time or to postpone for any time any of the powers exercisable by the
beneficiary against the said obligator(s) and to forbear or enforce any of
the terms and conditions relating to the said agreement and we shall not be
relieved of our liability by reason of any extension being granted to the said
obligator(s) for any forbearance, act or omission on the part of the
beneficiary or any indulgence by the beneficiary to the said obligator(s) or
by any such matter or thing whatsoever which under the law relating to
sureties would not for this provision have effect of so relieving us.

4. We, the Bank lastly undertake not to revoke this guarantee during its
currency except with the previous consent of the beneficiary in writing.

5. Notwithstanding anything contained herein:

(i) Our liability under this Bank Guarantee shall not exceed Rs. ………
(Rupees ……………………………………………………………… only)

(ii) This Bank Guarantee is valid up to ………………………. and

(iii) We are liable to pay the guaranteed amount or any part thereof

under this Bank Guarantee only and only if you serve upon us a

written claim or demand on or before ………………. (mention

period of the guarantee as found under clause (ii) above plus claim

period)

PLACE:

DATE: SIGNATURE

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