GUARANTEE APPLICATION
Tick
as appropriate
PRINCIPAL
Name
Riga
, Ref.
BENEFICIARY
Name
Address
Address
Registration No.
Registration No.
WE REQUEST YOU TO ISSUE THE GUARANTEE
in the form of a letter
signed with the electronic signature and delivered via Swedbank AS Internet Banking to
Principal
Beneficiary
or
in SWIFT format through
bank, SWIFT
in order for the foregoing bank to pass the Guarantee on to the Beneficiary without assuming obligations
in order for the foregoing bank to issue their own guarantee to the Beneficiary based on a counter-Guarantee by Swedbank
Language of the Guarantee:
Latvian
English
GUARANTEE EXPIRY DATE
(in case of a counter-Guarantee ,15 days must be added to the requested expiry date of the Guarantee)
GUARANTEE AMOUNT (in figures and words) and CURRENCY
GUARANTEE WORDING
Swedbank AS standard wording:
By signing this Application, the Principal confirms that it is familiarized with Swedbank AS standard guarantee wording;
as enclosed with this Application
GUARANTEE TYPE (CONTENTS)
tender guarantee;
performance guarantee;
payment guarantee;
advance payment guarantee;
warranty period guarantee
retention money guarantee
BRIEF DESCRIPTION OF THE TRANSACTION
Contract / Procurement
No., date
Contract / Procurement
name
Description of goods or
services
Other information:
SPECIAL CONDITIONS
GUARANTEE COLLATERAL
CASH COLLATERAL
TERM DEPOSIT
We confirm that we are also bound by the Annex to this Application “Terms and Conditions for Guarantees Secured by Term
Deposits”
ACCOUNT TURNOVER
We confirm that we are also bound by the Annex to this Application “Terms and Conditions for Guarantees Secured by Account
Turnover”
OTHER COLLATERAL IN ACCORDANCE WITH FRAMEWORK AGREEMENT NO.
.
ADDITIONAL CONDITIONS
GUARANTEE SERVICING ACCOUNT NO.
GUARANTEE PAYMENT ACCOUNT NO.
LV
LV
HABA
HABA
We request issuance of Guarantee in accordance with this Application and URDG 758. The Guarantee will be in force in accordance with the
General Terms and Conditions of Guarantees set out overleaf which we have read, agree to and undertake to comply with.
PRINCIPAL’S SIGNATURE
PERSON AUTHORISED BY THE PRINCIPAL TO COLLECT THE
ORIGINAL GUARANTEE (if the guarantee is issued as a letter and
is not signed by electronic signature)
_________________
,
Signature,
name printed, position
GUARANTEE ISSUANCE PROCEDURE
standard issuance (within 3 business days)
urgent issuance (within 24 hours)
Forename, surname:
identity number:
CONTACT PERSON
Forename, surname
Telephone
Fax
E-mail
__________________________
__________________________
__________________________
__________________________
Accepted by Swedbank AS……………………………………………………......................................
0432F, 5.0
01.09.2015.
GENERAL TERMS AND CONDITIONS OF GUARANTEES
1. Terms and definitions:
Bank
Swedbank AS, unified reg. No. 40003074764, registered office: Balasta
dambis 15, Riga, LV1048
Customer
a natural person or an legal entity, or an association of such persons or
entities, stated in the Application as the Principal
Guarantee
a guarantee by the Bank issued on the terms set out in the Application
under which the Bank assumes the obligation to be liable to the
Beneficiary for performance of the Customer’s obligations
Guarantee
a current account with the Bank indicated in the Application as the
Servicing
Guarantee Servicing Account which the Customer authorizes to be
Account
debited by the Bank for payments (fees, late interest, and other payments)
due in connection with the Guarantee issued
Guarantee
a current account with the Bank indicated in the Application as the
Payment
Guarantee Payment Account which the Customer authorizes to be used
Account
by the Bank for paying the Guarantee Amount (the Guarantee Servicing
Account may also be indicated as the Guarantee Payment Account. If no
Guarantee Payment Account is indicated in the Application, then the
Guarantee Servicing Account will be treated as the Guarantee Payment
Account)
Cash
a special account with the Bank to which the Guarantee collateral –
Collateral
cash collateral – is transferred and in which the Guarantee collateral is
Account
kept
Agreement
Payment
Demand
Application
International
Guarantee
Regulations
the agreement entered into by and between the Bank and the Customer
on the basis of which the Bank issues one or several Guarantees
a demand by the Beneficiary to the Bank to pay the Beneficiary the
Guarantee Amount or a part thereof
an application for issuing a guarantee signed by the Customer as the
Principal
Publication No. 758 ICC Uniform Rules for Demand Guarantees by the
International Chamber of Commerce
2. The Customer shall secure the Guarantee with a collateral, hereinafter – the “Collateral”,
acceptable to the Bank.
2.1. If the Guarantee is secured by cash collateral, the Customer, by signing the Application,
authorizes the Bank to debit the Guarantee Payment Account and to transfer funds equivalent to
the Guarantee Amount to the Cash Collateral Account. If the currency of funds in the Guarantee
Payment Account differs from the currency of the Guarantee, the Bank will have the right to
perform currency exchange at the Bank’s exchange rate in force on the day the Guarantee is
issued. ;
2.2. If the Guarantee is secured by term deposit, the Customer shall, prior to the Guarantee being
issued, sign the Annex “Terms and Conditions for Guarantees Secured by Term Deposits” and
the Customer authorizes the Bank to debit the Guarantee Payment Account and to set up a term
deposit. If considered necessary by the Bank, the Bank and the Customer (and other provider of
the respective collateral) shall sign the Agreement and the Deposit Agreement prior to the
Guarantee being issued.
2.3. If the Guarantee is secured by funds in the Customer’s accounts (i.e. by account turnover), the
Customer shall, prior to the Guarantee being issued, enter into the Agreement with the Bank or
shall sign the Annex “Terms and Conditions for Guarantees Secured by Account Turnover”;
2.4. If the Guarantee is secured by commercial pledge, mortgage or other collateral acceptable to
the Bank, the Customer (and other provider of the respective collateral) shall, prior to the
Guarantee being issued, enter into the Agreement and a security agreement (for commercial
pledge, mortgage or other collateral acceptable to the Bank) with the Bank.
2.5. The Bank shall release the Collateral on the 8th day after the Guarantee’s expiry date if the
Bank does not receive a Payment Demand until that expiry date and the Customer has performed
its obligations to the Bank under the issued Guarantee.
3. Depending on the terms indicated in the Application, the Bank shall issue a direct or indirect
Guarantee (counter-Guarantee):
3.1. In case of issuing the direct Guarantee (unconfirmed Guarantee), the Bank assumes direct
Guarantee obligations to the Beneficiary;
3.2. In case of issuing the indirect Guarantee (counter-Guarantee), the Bank assumes indirect
Guarantee obligations to the Beneficiary and asks other credit institution to assume direct
obligations to the Beneficiary. In issuing the indirect Guarantee, the Bank authorizes the
respective credit institution to fully assume obligations under the Guarantee insofar as it is lawful
until the expiry date of the indirect Guarantee and to make any payment arising from the indirect
Guarantee. The obligations of the respective credit institution shall be treated as a separate
guarantee issued under the laws of the respective country or the International Guarantee
Regulations.
4. If the Customer asks in the Application that the Guarantee be issued in the standard wording,
then the Bank will issue the Guarantee in the standard wording of guarantees adopted by the
Bank. If the Customer asks in the Application that the Guarantee be issued in the wording
enclosed with the Application, then the Bank may refuse to offer a Guarantee with such a text. The
Customer shall have a duty to examine the text of the Guarantee upon receiving the Guarantee.
5. By accepting the Guarantee the Customer confirms that it has examined the text thereof and
that the Guarantee is in conformity with its Application. If the Customer asks the Bank in the
Application to issue the Guarantee by passing it on / sending it directly to the Beneficiary, then the
Customer will assume all the risk associated with the contents of the Guarantee being in
conformity with the Application.
6. If the Customer requests that the Guarantee be issued for the obligations of a third party, then
this must be stated in the “Special Conditions” field on the Application, and the Application must be
signed by the Customer as well as by such a third party or, alternatively, an application signed by
such a third party where it confirms that it agrees to the issuance of such the Guarantee and to the
terms of the Application must be enclosed with the Application.
7. The Bank shall issue the Guarantee within 3 business days in the event of standard issuance or
within 24 hours (counting only business days of the Bank) in the event of urgent issuance after the
Bank has accepted and approved the Application and the wording of the Guarantee (if not
standard wording), the Customer has paid the Bank the required fees and Collateral satisfactory to
the Bank has been provided. The Bank does not assume any obligation or duty to issue the
Guarantee by accepting the Application and the Bank may refuse to act on the Application without
any written explanation of the reasons behind the refusal to issue the Guarantee.
8. If the Bank issues the Guarantee in the form of a letter signed with the electronic signature, the
Customer agrees that the Bank issues the Guarantee by making it available in the Principal’s
and/or the Beneficiary’s (depending that stated in the Application) user account of the Internet
Banking facility operated by Swedbank AS and the Guarantee will be available to all Internet
Banking users of the respective addressee.
9. Upon receipt of a Payment Demand, the Bank shall verify that documents furnished by the
Beneficiary comply with the terms and conditions of the Guarantee. The Bank assumes no liability
or responsibility whatsoever for the form, adequacy, accuracy, validity, falsification, legality or
contents of any documents presented to the Bank, or for any statements made in such
documents, or for quantity, quality and existence of goods or services (if such are indicated in the
documents furnished). The Bank will bear no liability for performance of any agreements existing
between the Principal and the Beneficiary, and such agreements will not be binding on the Bank,
notwithstanding the fact that such an agreement has been referred to in the Guarantee.
10. The Customer authorizes the Bank to satisfy Payment Demands presented to the Bank by
debiting the Guarantee Payment Account and to pay fees, if any, by debiting the Guarantee
Servicing Account. Where there are Customer’s funds in the Cash Collateral Account, the Bank
shall make the respective payment out of these funds. The Bank shall make payments in the
currency stated in the Guarantee and the Bank shall have the right to exchange the Customer’s
funds at the Bank’s exchange rate in force on the day the Payment Demand is satisfied. If, on the
day of satisfaction of the Payment Demand, funds in the Guarantee Payment Account or in the
Guarantee Servicing Account or the Customer’s funds credited to the Cash Collateral Account are
not sufficient for satisfying the Payment Demand and paying the Bank’s fees, then the Customer
shall promptly pay the Bank the amount lacking unless otherwise stipulated in any existing
agreements entered into between the Bank and the Customer in connection with the Guarantee
issued. Until and unless the Customer has paid the Bank the amount lacking, such an amount will
be recorded in the Bank’s accounting system as the Bank’s loan to the Customer, hereinafter – the
“Debt”. The Customer shall pay interest to the Bank for using the amount of the Debt at the rate of
16% per annum of the amount of the Debt on the basis of a year of 360 days and the number of
calendar days in a month. Repayment of the Debt and payment of other amounts due arising from
the Application shall be made by the Principal within the time limit set by the Bank.
11. The Bank will pay, or authorise the respective credit institution to pay (in case of indirect
Guarantee), funds demanded under the Guarantee upon receipt of the first Payment Demand by
the Beneficiary provided that the conditions set out in the Guarantee are complied with and the
Guarantee is in force.
12. The fees shall be calculated according to the Bank’s price list for services (the price list is
available at the premises of the Bank during business hours of the Bank and on the Bank’s
website at www.swedbank.lv) and shall be debited from the Guarantee Servicing Account. Fees
set as a percentage per year will be calculated for each calendar day on the basis of a year of 360
days. The Customer shall also be liable for covering the fees of other credit institutions, if any, as
well as other expenses incurred by the Bank in connection with the Guarantee. The Bank shall
have the right to charge fees for the entire duration of the Guarantee in advance at its sole
discretion upon issuance of the Guarantee. If the parties have entered into the Agreement and the
Agreement sets forth the fees, then the fees will be calculated according to the respective
Agreement. Fees payable once a calendar year shall be paid by the Customer on the 15th day of
each calendar month unless the Agreement sets forth other fee payment procedure.
13. All of the financial means, present or future, in any account of the Customer with the Bank, as
well as funds in the Cash Collateral Account, are pledged with the Bank as a financial pledge and
secure for all and any claims the Bank may have against the Customer in connection with the
issued Guarantee. If the Customer fails to provide funds necessary for respective payments in the
Guarantee Payment Account or in the Guarantee Servicing Account in due time and also in all
other cases where a claim by the Bank arises against the Customer in connection with the
Guarantee, the Bank will have the right to satisfy such a claim by enforcing the financial pledge,
namely the Bank will have the right to debit (transfer), without any prior notice to the Customer
thereof, the due amount from any account held by the Customer with the Bank, including from the
Cash Collateral Account, or to withhold the same from funds otherwise due to the Bank;
furthermore the Bank shall have the right to convert such funds on behalf of the Customer without
any prior notice to the latter at the Bank’s exchange rate then in force.
14. For a delay in payment of any fee and for failure to pay the Debt amount within the time limit
set by the Bank, the Customer shall be charged a contractual penalty at the rate of 0.16% per day
of the amount past due for the period of delay.
15. The Bank may, subject to any applicable statutory requirements, exercise its sole discretion in
determining the sequence for satisfying the Bank’s claims against the Customer.
16. The Bank shall bear no responsibility for any inaccuracies, errors, or delays arising due to a
failure in telecommunication, electronic data transfer systems, mail or courier post. Neither will the
Bank bear any responsibility for any inaccuracy or error by any correspondent banks in
performance of instructions by the Bank.
17. The Bank may disclose information about the Customer to, and to receive information from,
the Bank of Latvia when and as set forth in the Credit Register Regulations of the Bank of Latvia
(the Bank of Latvia’s Credit Register Regulations are available on the website of the Bank of Latvia
at www.bank.lv).
18. Relationship between the Bank and the Customer are governed by the present Terms and
Conditions, the Application, the Guarantee Agreement (if signed), the Terms and Conditions of
Guarantees Secured by Term Deposits / Account Turnover (if signed), and the General Conditions
of the Bank. The present Terms and Conditions, the Application, the Agreement (if signed), the
Terms and Conditions of Guarantees Secured by Term Deposits / Account Turnover (if signed),
as well as any other agreements existing between the Bank and the Customer in connection with
the Guarantee issued by the Bank shall be subject to the applicable laws and regulations in force
in the Republic of Latvia. The International Guarantee Regulation shall apply to the Guarantee only
where expressly stated so in the text of the Guarantee. Guarantees issued by other credit
institutions shall be subject to the local laws and regulations of the country where the guarantee in
question has been issued, unless stated otherwise in the text of the Guarantee. If the Guarantee is
issued in the form of a standby letter of credit, it will be subject to the International Chamber of
Commerce’s publication No. ISP98 International Standby Practices.
19. All and any disputes arising between the Customer and the Bank in connection with the
Guarantee will be resolved at the Riga International Arbitration Court, in Riga, according to the
rules and regulations of the arbitration court, before one arbitrator, in Latvian.
0432F, 5.0
01.09.2015.