¶¶Òõ¶ÌÊÓÆµ

Performance Security Bank Guarantee for the United Kingdom

Performance Security Bank Guarantee Template for England and Wales

A Performance Security Bank Guarantee is a financial instrument issued by a bank under English and Welsh law, providing security to a beneficiary against the non-performance or default of contractual obligations by a principal. The guarantee creates a primary obligation on the bank to pay a specified sum upon demand, subject to the terms and conditions specified in the guarantee document. It operates independently of the underlying contract and provides immediate access to funds without the need to prove loss.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Performance Security Bank Guarantee

Let ¶¶Òõ¶ÌÊÓÆµ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Performance Security Bank Guarantee?

Performance Security Bank Guarantees are commonly used in commercial contracts where parties seek financial security for performance obligations. These guarantees, governed by English and Welsh law, provide beneficiaries with a readily accessible form of security that can be called upon in the event of contractor default or non-performance. The guarantee typically specifies a maximum amount (usually a percentage of the contract value), validity period, conditions for demands, and claim procedures. It represents a primary obligation of the bank, independent from the underlying contract, making it a more robust form of security than traditional sureties.

What sections should be included in a Performance Security Bank Guarantee?

1. Parties: Identifies the bank (guarantor), the beneficiary, and the principal

2. Background: References the underlying contract and reason for guarantee

3. Definitions: Key terms used in the guarantee including references to relevant legislation

4. Guarantee Amount: Maximum sum guaranteed and currency specifications

5. Demand Requirements: Conditions and process for making claims under the guarantee

6. Expiry: Duration, termination conditions, and expiry provisions

7. Governing Law: Specification of English and Welsh law jurisdiction and enforcement

What sections are optional to include in a Performance Security Bank Guarantee?

1. Reduction Provisions: Terms for reducing guarantee amount over time for long-term projects with phased completions

2. Assignment: Rights and conditions for transferring the guarantee when transfer rights are required by beneficiary

3. Multiple Beneficiaries: Provisions governing rights and claims process when guarantee benefits multiple parties

What schedules should be included in a Performance Security Bank Guarantee?

1. Form of Demand: Template for making claims under the guarantee including required declarations and documentation

2. Underlying Contract: Copy or summary of the contract being guaranteed, including key performance obligations

3. Bank's Authorization: Evidence of authority to issue guarantee and relevant banking licenses

Authors

Alex Denne

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

Jurisdiction

England and Wales

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use
Relevant legal definitions






















Clauses
























Industries

Unfair Contract Terms Act 1977: Primary legislation that regulates terms that exclude or restrict liability and ensures reasonableness of contract terms in England and Wales

Financial Services and Markets Act 2000: Key legislation that regulates financial institutions and banking services, setting requirements for providing financial guarantees

Banking Act 2009: Framework legislation that provides banking regulation and impacts banks' ability to issue guarantees

Law of Guarantees: Common law principles governing requirements for valid guarantees and establishing rights and obligations of parties

Contract Law Fundamentals: Essential common law principles covering offer, acceptance, consideration, intention to create legal relations, and capacity to contract

Uniform Rules for Demand Guarantees (URDG 758): International Chamber of Commerce rules commonly used in bank guarantees, particularly relevant for international transactions

PRA Requirements: Prudential Regulation Authority requirements governing banks and financial institutions in the UK

FCA Regulations: Financial Conduct Authority regulations ensuring proper conduct and consumer protection in financial services

Basel III Requirements: International regulatory framework for banks that affects their capital adequacy and ability to issue guarantees

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Performance Bond Guarantee

An England & Wales legal document ensuring financial security for contract performance in large-scale projects.

find out more

Cheque Guarantee Letter

An England & Wales legal document addressing unauthorized financial transactions and seeking resolution and fund recovery.

find out more

Bank Guarantee Cancellation

An England & Wales legal document addressing service delays, outlining impacts and seeking resolution under the Consumer Rights Act 2015.

find out more

Bank Guarantee Business

A legally binding guarantee issued by a bank under English and Welsh law to secure business obligations between parties.

find out more

Letter To Bank For Confirmation Of Bank Guarantee

A formal request under English and Welsh law to verify the authenticity and validity of a bank guarantee.

find out more

Bank Guarantee Sblc

A bank-issued financial guarantee instrument governed by English and Welsh law, providing payment assurance upon specified conditions.

find out more

Bank Guarantee On Fd

A bank-issued guarantee secured against a fixed deposit, governed by English and Welsh law, providing payment security to beneficiaries.

find out more

Payment Sblc

A bank-issued payment guarantee instrument under English and Welsh law, providing financial security for commercial transactions.

find out more

Counter Sblc

A Counter SBLC is a bank-issued counter-guarantee instrument for an original SBLC, governed by English and Welsh law.

find out more

Sovereign Bank Guarantee

A state-backed bank guarantee instrument governed by English and Welsh law, providing payment security for major transactions.

find out more

Government Backed Bank Guarantee

A financial guarantee instrument issued by a bank with government backing, governed by English and Welsh law.

find out more

Export Working Capital Guarantee

A financial guarantee instrument under English and Welsh law that secures working capital financing for export operations.

find out more

Company Guarantee Letter With Bank Endorsement

A bank-endorsed corporate guarantee document under English and Welsh law, providing secured assurance for specified obligations.

find out more

Bank Guarantee Text

A legally binding financial instrument under English and Welsh law where a bank guarantees payment to a beneficiary upon specified conditions.

find out more

Bank Guarantee Term Deposit

An English law agreement combining a term deposit with a bank guarantee, specifying deposit terms and guarantee conditions.

find out more

Bank Guarantee Tenor

A financial instrument under English and Welsh law where a bank guarantees payment to a beneficiary for a specified period.

find out more

Bank Guarantee Property Purchase

A legally binding guarantee issued by a bank under English and Welsh law to secure property purchase payments.

find out more

Bank Guarantee Maturity

A formal document under English and Welsh law confirming the expiration and discharge of obligations under a bank guarantee.

find out more

Bank Guarantee In International Trade

A bank's independent undertaking to pay a specified sum upon demand in international trade transactions, governed by English and Welsh law.

find out more

Bank Guarantee Against Property

An English law document where a bank provides a guarantee secured against property, establishing payment obligations and security arrangements.

find out more

Bank Deposit Guarantee Amount

A legally binding agreement under English and Welsh law establishing terms for securing specified bank deposit amounts through a guarantee arrangement.

find out more

Bank Guarantee Investment

An England and Wales-governed guarantee instrument where a bank provides security for specified investment amounts or returns.

find out more

Loan Against Bank Guarantee

An English law agreement for a loan facility secured by a bank guarantee, setting out lending terms and security arrangements.

find out more

Security Bank Guarantee

A bank-issued guarantee document under English and Welsh law, providing financial security to a beneficiary against specified obligations.

find out more

Letter Of Guarantee For Loan

A legally binding document under English and Welsh law where a guarantor commits to repaying a loan if the primary borrower defaults.

find out more

Return Of Original Bank Guarantee

A formal document under English and Welsh law confirming the return of an original bank guarantee to the issuing bank and releasing the bank from its obligations.

find out more

Bank Guarantee As Collateral Security

An English law-governed bank guarantee document securing obligations through specified collateral assets.

find out more

Bank Guarantee For Home Deposit

A legal document under English and Welsh law where a bank guarantees a property deposit payment to a seller on behalf of a buyer.

find out more

Online Banking Security Guarantee

A legal agreement under English and Welsh law defining a bank's security commitments and customer protections for online banking services.

find out more

Post Bank Guarantee

A bank-issued financial guarantee under English and Welsh law, providing security for contractual obligations through an independent payment undertaking.

find out more

Guarantee Cheque Against Advance Payment

A legal instrument under English and Welsh law providing security through a guarantee cheque against advance payments in commercial transactions.

find out more

Bank Guarantee For Supply Of Goods

A financial instrument under English and Welsh law where a bank guarantees payment to a supplier for goods in case of buyer default.

find out more

Bank Deposit Government Guarantee

A legal document under English and Welsh law establishing government protection for specified bank deposits.

find out more

Discharge Of Bank Guarantee

A legal document under English and Welsh law that releases a bank from its obligations under a previously issued bank guarantee, terminating the bank's liability.

find out more

Credit Line Against Bank Guarantee

An English law agreement establishing a credit facility secured by a bank guarantee, setting out terms for facility usage and guarantee enforcement.

find out more

Bank Transfer Guarantee

A legally binding guarantee under English and Welsh law where a bank ensures secure transfer of funds between parties.

find out more

Bank Guarantee Demand Letter

A formal demand for payment under a bank guarantee, governed by English and Welsh law, made by a beneficiary against a guarantor bank.

find out more

Bank Guarantee Covering Letter

A formal transmittal document for bank guarantees under English and Welsh law, confirming the authenticity and details of the enclosed guarantee.

find out more

Guarantee Of Safe Deposit Of Money In Banks

An English law guarantee document ensuring the protection of bank deposits under UK financial regulations and FSCS protection scheme.

find out more

Corporate Guarantee And Bank Guarantee

An English law guarantee document providing financial security through either corporate or bank undertakings to fulfill specified obligations.

find out more
See more related templates

³Ò±ð²Ô¾±±ð’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ³Ò±ð²Ô¾±±ð’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it