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Bank Credit Guarantee
"I need a Bank Credit Guarantee agreement where ABC Corporation will act as guarantor for XYZ Manufacturing's 50 million peso credit facility from Metro Bank, with the guarantee covering 75% of the outstanding loan amount and including step-in rights for the bank."
1. Parties: Identification of the Guarantor, the Bank (Beneficiary), and the Principal Debtor
2. Background: Context of the guarantee, reference to the underlying credit facility, and the relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement, including banking and financial terms specific to credit guarantees
4. Guarantee and Indemnity: Core terms of the guarantee, including the scope, limit, and nature of the guaranteed obligations
5. Representations and Warranties: Statements of fact and assurances from the Guarantor regarding their capacity and authority to provide the guarantee
6. Payment Mechanics: Procedures and timelines for making payments under the guarantee, including currency and payment methods
7. Enforcement: Circumstances and procedures for enforcing the guarantee, including notice requirements and cure periods
8. Duration and Release: Term of the guarantee and conditions for its termination or release
9. Communications: Methods and requirements for formal notices and communications between parties
10. Governing Law and Jurisdiction: Specification of Philippine law as governing law and designation of courts having jurisdiction
11. Execution: Signature blocks and execution formalities
1. Security Provisions: Additional security arrangements when the guarantee is secured by specific assets or collateral
2. Corporate Authorization: Required when the guarantor is a corporation, detailing corporate approvals and resolutions
3. Joint and Several Liability: Needed when there are multiple guarantors providing the guarantee
4. Foreign Currency Provisions: Required when the guarantee involves foreign currency obligations
5. Anti-Money Laundering Compliance: Detailed compliance provisions when required by the scale or nature of the transaction
6. Step-In Rights: Optional provisions allowing the bank to take control of certain assets or rights in default scenarios
7. Tax Provisions: Detailed tax arrangements when the guarantee structure has specific tax implications
1. Schedule 1 - Guaranteed Obligations: Detailed description of the credit facility and obligations covered by the guarantee
2. Schedule 2 - Guarantee Limit and Calculations: Specific financial limits and calculation methodologies for the guarantee amount
3. Schedule 3 - Condition Precedents: List of documents and conditions required before the guarantee becomes effective
4. Schedule 4 - Form of Demand: Template for making a formal demand under the guarantee
5. Appendix A - Corporate Authorizations: Copies of relevant corporate approvals and resolutions
6. Appendix B - Specimen Signatures: Authorized signatures for executing documents and notices
7. Appendix C - Compliance Documents: Required regulatory and compliance documentation
Authors
Banking
Financial Services
Corporate Lending
Small and Medium Enterprises (SMEs)
Real Estate
Manufacturing
Trading
Construction
Infrastructure
Agriculture
Export-Import
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Banking
Credit Administration
Banking Operations
Corporate Secretariat
Credit Risk
Chief Financial Officer
Finance Director
Treasury Manager
Credit Risk Manager
Legal Counsel
Corporate Secretary
Banking Relationship Manager
Credit Officer
Compliance Officer
Risk Assessment Officer
Corporate Banking Manager
Senior Loan Officer
General Counsel
Banking Operations Manager
Credit Analysis Manager
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