BANK GUARANTEE
(TO BE ADOPTED ON BANK GUARANTOR’S LETTERHEAD)
To:
[…(Insert name & address of the
company/ seller in whose favour this
guarantee is issued)…]
Date: […(Insert date of this guarantee)…]
Dear Sirs,
GUARANTEE FOR THE SUM OF RM[…(Insert guaranteed amount)…]
________________________________________________________________________
We, at the request of […(Insert name of customer)…](“Customer”) of […(Insert address
of Customer)…] hereby agree and undertake to pay you an amount or amounts in total
not exceeding Ringgit Malaysia […(Insert guaranteed amount)…] (RM……) only
(“Guaranteed Amount”) upon receipt of your demand or demands in writing, without
proof and/or condition(s) and notwithstanding any objections, protest or contestation
whatsoever by the Customer and/or any person(s) and/or any third party(s).
You shall be entitled to make several or partial demands under this guarantee at your
absolute discretion provided that the total of all partial demands so made shall not exceed
the Guaranteed Amount and that our liability to pay you as provided hereunder shall
correspondingly be reduced proportionate to any partial demand(s) having been made by
you.
We undertake that all amounts to be paid by us under this guarantee shall be in clear
funds to the bank account nominated by you in your demand by bank transfer or in such
other manner as you may reasonably specify in your demand and shall be without any
set-off, counterclaim, deductions and/or withholdings whatsoever. If your demand does
not specify the means of payment, we shall make payment in clear funds.
Any demand under this guarantee shall be in writing and shall be deemed to be duly
served on us if left at or sent by pre-paid registered post to […(Insert address of guarantor
bank)..] or, if sent by facsimile to […(Insert facsimile number of guarantor bank)…] or
such other address or fax number in Malaysia as we may from time to time notify you in
writing. Any demand shall be deemed received by us if left at the aforesaid address, at the
time of delivery or, if sent by pre-paid registered post to the aforesaid address, three (3)
days after posting or, if sent by facsimile transmission, at the time of transmission or
dispatch.
You shall be entitled, at any time and at your absolute discretion, to grant to the Customer
any time, forbearance or other indulgence (whether as to payment or performance or
otherwise) or to compound with the Customer or to vary, alter, amend or modify any
term(s) and/or condition(s) of any agreement(s) or arrangement(s) with the Customer or
any obligation(s) undertaken by the Customer or to refuse credit or supplies of any goods
or services to the Customer, without notice to us and without our consent and without in
any way discharging or impairing our liability or obligations hereunder.
This guarantee shall be irrevocable and shall remain in full force and effect from
[…(insert the commencement date of the validity period for this guarantee)…] until and
including […(insert the expiry date of the validity period for this guarantee)…] (“Said
Period”).
Notwithstanding and contrary provisions hereunder (express or implied), any demand(s)
made hereunder must be made by you during the Said Period or within sixty (60) days
from the expiry date of the Said Period, at your absolute discretion (“Demand Period”).
We shall not in any way be discharged or released from our liability to pay you as
provided hereunder in respect of any demand(s) made by you during the Said Period or
within sixty (60) days from the expiry date of the Said Period.
This guarantee shall be governed by and construed in accordance with the laws of
Malaysia.
This guarantee shall not be determined or in any way be affected or prejudiced by any
changes whatsoever in your, our and/or the Customer’s constitution (whether by
amalgamation, reconstruction, merger or otherwise).
This guarantee shall enure for your benefit and the benefit of your successor(s) in title
and assigns and shall bind us and our successor(s) in title and permitted assigns.
Yours faithfully,
for […(insert name of guarantor bank)…]
………………………………..
Authorised Signatory
[…(Insert name and designation)…]