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Cash Backed Bank Guarantee
"I need a Cash Backed Bank Guarantee document under Saudi Arabian law for a construction project, where my company will provide SAR 5 million in cash collateral to secure performance obligations, with the guarantee expiring on March 15, 2025."
1. Parties: Identification of the Bank (Guarantor), the Applicant (providing cash backing), and the Beneficiary
2. Background: Context of the guarantee, underlying relationship between Applicant and Beneficiary, and purpose of the guarantee
3. Definitions: Key terms used throughout the guarantee, including 'Guarantee Amount', 'Cash Collateral', 'Expiry Date', etc.
4. Guarantee Terms: Core terms including guarantee amount, validity period, and conditions for payment
5. Cash Collateral Arrangements: Details of the cash backing, including amount, account details, and blocking mechanisms
6. Bank's Rights and Obligations: Scope of bank's commitment, payment obligations, and rights regarding the cash collateral
7. Demand Procedures: Process and requirements for making a valid demand under the guarantee
8. Reduction and Release: Conditions for reduction of guarantee amount and release of cash collateral
9. Fees and Charges: Bank's fees, charges, and commission for issuing and maintaining the guarantee
10. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes
1. Shariah Compliance Declaration: Statement confirming compliance with Islamic principles - required if the guarantee needs explicit Shariah compliance
2. Foreign Law Considerations: Additional provisions for cross-border guarantees - required if beneficiary is outside Saudi Arabia
3. Multiple Beneficiaries: Additional provisions for handling multiple beneficiaries - required if more than one beneficiary
4. Language Provisions: Provisions regarding prevailing language - required if guarantee is bilingual
5. Counter-Guarantee Provisions: Additional terms if guarantee is issued under a counter-guarantee structure
1. Schedule 1 - Form of Demand: Template for making a compliant demand under the guarantee
2. Schedule 2 - Cash Collateral Account Details: Specific details of the account where cash collateral is held
3. Schedule 3 - Fee Schedule: Detailed breakdown of all applicable fees and charges
4. Schedule 4 - Required Documents: List of documents required for guarantee issuance and demands
5. Appendix A - Specimen Signatures: Authorized signatures for the parties involved
6. Appendix B - Supporting Documents: Copies of underlying contract or other relevant documents
Authors
Banking & Financial Services
Construction & Infrastructure
International Trade
Real Estate Development
Oil & Gas
Manufacturing
Government & Public Sector
Telecommunications
Mining & Resources
Retail & Commerce
Legal
Finance
Treasury
Compliance
Risk Management
Commercial Operations
Trade Finance
Islamic Banking
Corporate Banking
Project Finance
Treasury Manager
Chief Financial Officer
Finance Director
Legal Counsel
Compliance Officer
Risk Manager
Banking Relationship Manager
Contract Manager
Commercial Director
Credit Manager
Islamic Banking Officer
Trade Finance Manager
Company Secretary
Financial Controller
Project Finance Manager
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