Bank Guarantee Checklist

A bank guarantee is a promise from a bank or lending institution that if a particular borrower defaults on a loan, the bank will cover the loss. To ensure that the bank guarantee is valid and effective, it is important to review and verify the following items:

1. Accuracy of the Guarantor Information:

• Name of the issuing bank
• Address of the bank
• Guarantee number
• Date of issue

2. Purpose of the Guarantee:

• Is the guarantee for performance, payment, or bid bond?
• Is the amount of the guarantee clearly stated?

3. Validity of the Guarantee:

• Does the guarantee have an expiry date?
• Is the guarantee still within the validity period?

4. Acceptability of Conditions:

• Are all the terms and conditions of the guarantee acceptable to the beneficiary?
• Can the beneficiary easily claim on the guarantee when needed?

5. Documentation:

• Are all the required documents provided along with the guarantee?
• Is the guarantee properly executed and signed by authorized signatories?

By conducting a thorough review of the bank guarantee using this checklist, you can ensure that the guarantee is valid and provides the necessary protection for all parties involved.