DIY Legal Forms

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Bank's Progress Payment Guarantee Conditional

To: (......)

PURSUANT TO the Contract No. (......) concluded between you and (......) ("the Applicant") you are required to make payment to the Applicant of (......)((......)) (the Progress Payment) being (......)% of the Contract value.

NOW WE (......) at the request of the Applicant HEREBY GUARANTEE to repay to you, upon receipt of your first written demand an amount up to (......) ((......)) in the event of the Applicant having failed to fulfil the terms and conditions of the Contract.

The demand must include a statement that

(1) the Applicant has failed to fulfil the terms and conditions of the Contract and

(2) the amount demanded has not otherwise been paid either directly or indirectly by or for the Applicant.

The statement must be supported by

(1) an arbitration award made in your favour, or

(2) the Applicant's written approval to the demand and its amount.

The demand and supporting documentation must be received by us by no later than (......) 20.. after which date our obligations under this Guarantee shall expire and become null and void. The original of this document must be returned to us after the expiry date.

This Guarantee shall take effect upon the receipt by us of written confirmation by the Applicant that it has received the Progress Payment, notice of which will be sent to you.

This Guarantee shall be subject to the Uniform Rules for Tender, Performance and Repayment Guarantees ("Contract Guarantees") of the International Chamber of Commerce (Publication No. 325). Any dispute arising in connection with this Guarantee shall be finally settled by arbitration under the Rules of Conciliation and Arbitration of (......) by one or more arbitrators appointed pursuant to the Rules.

This Guarantee shall be governed by and construed in accordance with the laws of (......).

The place of arbitration shall be (......).

Dated the (......) day of 20..

Signed by: (......)