Example of Sovereign Gurantee
Example of Sovereign Gurantee
Example of Sovereign Gurantee
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Ministry of Finance
SOVEREIGN GUARANTEE
In consideration of xxxxx Employer (the "Facility User") having entered into a Facility
Agreement dated..................for the amount ............ (in words: ..................................) a copy
of which is annexed hereto, ("the Facility Agreement") ("the Creditor") whereby the Creditor
has agreed to make available to the Facility User a credit facility (the "Facility") upon the
terms and subject to the conditions contained in the Facility Agreement, the Ministry of
Finance of the Republic of xxxx ("Guarantor") hereby agrees to pay to the Creditor, within 60
(sixty) days after the Creditor’s written demand all sums which may at any time be explicitly
due and payable, but are not paid when due, by the Facility User under the Facility
Agreement.
The Guarantor’s obligations under this Guarantee shall in no event exceed the sum of all
payments which explicitly will become due and payable under the Facility Agreement.
Any demand addressed to the Guarantor hereunder by the Creditor shall be in a written form
and indicate that the Facility User has failed to pay when due any or all sums explicitly
payable under the Facility Agreement.
All payments hereunder shall be made within 90 (ninety) days after a demand being made
hereunder and in the currency in which the respective amount claimed is expressed to be due
and payable under the Facility Agreement, free of any deduction and withholding.
The Liability of the Guarantor hereunder shall be discharged and the Guarantee shall expire
only by the complete payment by the Facility User or the Guarantor of all sums which may at
any time be due and payable under the Facility Agreement.
This Guarantee is not assignable.
This Guarantee shall be governed and construed in accordance with Swiss Law. All disputes
arising from or in connection with this Guarantee shall be settled first by amicable
negotiations in good faith. In case the said disputes are not settled within 60 (sixty) days from
receipt of notification from either party, the said disputes arising in connection with this
Guarantee shall be finally settled under the Rules of Conciliation and Arbitration of the
International Chamber of Commerce, Paris by 3 (three) arbitrators. Each party will nominate
1 (one) arbitrator, the third arbitrator acting as chairman being appointed by the other 2 (two)
arbitrator or �?failing such appointment �?by the Court of Arbitration of the International
Chamber of Commerce. The arbitration shall be conducted in English language. Place of
Arbitration shall be Geneva, Switzerland.
Address:
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This Guarantee will become valid and effective upon acknowledgement of receipt thereof by
the Creditor in ............................................
Minister of Finance