When you request a bank guarantee, you refer to a letter that provides assurance that a bank will cover any losses incurred by a customer in the event that they default on a contract. This type of guarantee can be useful for businesses that are entering into new contracts or agreements, as it provides some financial protection in the event that things go wrong.
Bank Guarantee Letter
We hereby request you to issue bank guarantee as per format enclosed. We request you to debit charges and / or margin to our Cash Credit Account / Current Account
No………………. along with your charges.
The bank guarantee is to be issued against our limit of {{Amount}} / The bank guarantee is against
full cash margin provided by us.
Bank Guarantee Amount
Beneficiary Full name and address:
(For Bank's Control Purposes):
BG Expiry Date:
BG Claim expiry date (If any):
DECLARATION – CUM – UNDERTAKING (Required in case of foreign bank guarantee only)
I/We hereby declare that the transaction the details of which are specifically mentioned in this request letter does not involve and is not designed for the purpose of any contravention or evasion of the provisions of the Foreign Exchange Management Act or of any rules, regulation, notification, direction, or order made thereunder.
I /We also hereby agree and undertake to give such information/documents as will reasonably satisfy you about this transaction in terms of the above declaration. I/We also understand that if I/We refuse to comply with any such requirement or make only unsatisfactory compliance therewith, the bank shall refuse in writing to undertake the transaction and shall if it has reason to believe that any contravention/evasion is contemplated by me/us report the matter to {{Bank}}.
I/We further declare that the undersigned has/have the authority to give this declaration and undertaking on behalf of the company.