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International Bank Guarantees

Chapter 3 B. Forms and Documents

Note: The following forms and documents are prepared by the above under the laws and practice prevailing as of [Date]. Seldom is a model form or document directly suitable to a transaction without adaptation to the particularities and circumstances of the matter.

1. BANKS'S ADVANCE PAYMENT GUARANTEE - CONDITIONAL

To: (......)

PURSUANT TO the Contract No. (......) concluded between you and (......) ("the Applicant") you are required to make an advance payment to the Applicant of (......) ((......)) (the Advance Payment)

NOW WE (......) at the request of the Applicant HEREBY GUARANTEE to repay to you, upon receipt of your first written demand and amount up to (......) ((......)) in the event of the Applicant having failed to fulfil the terms and conditions of the Contract.

The demand must include a statement that

(1) the Applicant has failed to fulfil the terms and conditions of the Contract, and

(2) the amount demanded has not otherwise been paid either directly or indirectly by or for the Applicant.

The statement must be supported by

(1) an arbitration award made in your favour, or

(2) the Applicant's written approval to the demand and itsamount.

The demand and supporting documentation must be received by us by no later than (......) 20.. after which date our obligations under this Guarantee shall expire and become null and void. The original of this document must be returned to us immediately after the expiry date. This Guarantee shall take effect upon the receipt by us of written confirmation by the Applicant that it has received the Advance Payment, notice of which will be sent to you. This Guarantee shall be subject to the Uniform Rules for Tender Performance and Repayment Guarantees (Contract Guarantees) of the International Chamber of Commerce (Publication No. 325). Any dispute arising in connection with this Guarantee shall be finally settled by arbitration under the Rules of Conciliation and Arbitration of (...8...) by one or more arbitrators appointed pursuant to the Rules. This Guarantee shall be governed by and construed in accordance with the law of (......) The place of arbitration shall be (......)

Dated the (......) day of 20..

Signed by (......)