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Bank Guarantee Cancellation Letter for United Arab Emirates

Bank Guarantee Cancellation Letter Template for United Arab Emirates

A Bank Guarantee Cancellation Letter is a formal document used in the United Arab Emirates to request the termination of a bank guarantee. Operating under UAE banking laws and regulations, particularly Federal Law No. 18 of 1993 and Central Bank regulations, this document serves as an official request to release the guarantee obligations. It includes essential details such as the guarantee reference number, original amount, beneficiary information, and the grounds for cancellation. The document must comply with UAE Central Bank requirements and typically requires specific supporting documentation to process the cancellation effectively.

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Bank Guarantee Cancellation Letter

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What is a Bank Guarantee Cancellation Letter?

The Bank Guarantee Cancellation Letter is a crucial document used in the United Arab Emirates when an organization needs to formally request the termination of a bank guarantee. This document becomes necessary when the underlying obligation secured by the guarantee has been fulfilled, the guarantee has expired, or when both parties agree to terminate the guarantee arrangement. The letter must comply with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and UAE Central Bank regulations, requiring specific information such as guarantee details, cancellation justification, and appropriate authorizations. Supporting documents typically accompany the letter, including the original guarantee document, completion certificates, or beneficiary's consent, depending on the specific circumstances and bank requirements.

What sections should be included in a Bank Guarantee Cancellation Letter?

1. Letter Header: Official letterhead of the requesting company/entity, date, reference number, and bank's complete address

2. Subject Line: Clear indication that this is a request for cancellation of bank guarantee, including the guarantee reference number

3. Salutation: Formal greeting to the bank's appropriate department or official

4. Guarantee Details: Specific details of the bank guarantee including guarantee number, amount, beneficiary name, and original issue date

5. Cancellation Request: Clear and explicit statement requesting the cancellation of the guarantee

6. Reason for Cancellation: Brief explanation of why the guarantee is being cancelled (e.g., completion of underlying obligation, expiry of guarantee period)

7. Return of Original Documents: Statement regarding the return of original guarantee documents if applicable

8. Authorization: Statement confirming the authority to request the cancellation

9. Signature Block: Space for authorized signatory's name, title, signature, and company stamp

What sections are optional to include in a Bank Guarantee Cancellation Letter?

1. Indemnity Statement: Optional section where the requesting party indemnifies the bank against any claims arising from the cancellation - used when there might be potential disputes

2. Beneficiary's Consent: Reference to or inclusion of beneficiary's consent to cancel - used when required by the original guarantee terms or bank's policy

3. Future Banking Relationship: Statement about continuing banking relationship - used when maintaining good relations with the bank is particularly important

4. Copy Recipients: List of other parties to receive copies - used when multiple stakeholders need to be informed

What schedules should be included in a Bank Guarantee Cancellation Letter?

1. Original Bank Guarantee: Copy or original of the bank guarantee being cancelled

2. Authorization Letter: Corporate authorization for the signatory to request the cancellation

3. Beneficiary's No-Objection Certificate: Written confirmation from the beneficiary agreeing to the cancellation, if required

4. Completion Certificate: Evidence of completion of the underlying obligation, if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use
Relevant legal definitions


















Clauses















Relevant Industries

Banking and Financial Services

Construction and Real Estate

International Trade

Manufacturing

Energy and Utilities

Government and Public Sector

Retail and Commercial

Infrastructure Development

Transportation and Logistics

Professional Services

Relevant Teams

Finance

Legal

Treasury

Procurement

Operations

Risk Management

Contract Administration

Project Management

Corporate Secretariat

Banking Relations

Relevant Roles

Chief Financial Officer

Finance Manager

Treasury Manager

Financial Controller

Legal Counsel

Company Secretary

Procurement Manager

Contract Manager

Project Manager

Relationship Manager (Bank)

Credit Officer

Risk Manager

Operations Manager

Managing Director

General Manager

Industries





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