Bank Guarantee Format for Earnest Money Deposit

Sample Template Example of A Bank Guarantee Format for Earnest Money for Government Tenders, Contractual works, in Word / Doc / Pdf Free Download

APPENDIX ‘H’

FORMAT OF BANK GUARANTEE FOR EARNEST MONEY

1.             In consideration of the President of India (hereinafter called “the Government”) having agreed to exempt ____________________________ (hereinafter called “the said contractor(s)” ) from the demand, under the terms and conditions of tender for provision of __________ (hereinafter called “the said tender”), of Earnest Money Deposit for the due fulfillment by the said Contractor(s) of the terms and conditions contained in the said tender on production of a Bank Guarantee for Rs ____________________ (Rupees ………………………………………… only). We, ____________________________________ Bank, (herein after referred to as “the Bank”) do hereby undertake to pay to the Government an amount not exceeding Rs __________ (Rupees ………………………………………………………………………………. Only) against any loss or damage caused to or suffered or would be caused to or suffered by the Government by reason of any breach by the said Contractor(s) of any of the terms or conditions contained in the said tender.

2.             We, _________________________________ Bank, do hereby undertake to pay the amounts due and payable under this guarantee without any demur, merely on a demand from the Government stating that the amount claimed is due by way of loss or damage caused to or would be caused to or suffered by the Government by reason of any breach by the said Contractor(s) of any of the terms or conditions contained in the said agreement. Any such demand made on the Bank shall be conclusive as regards the amount due and payable by the Bank under this guarantee. However, our liability under this guarantee shall be restricted to an amount not exceeding Rs………………………

3.             We, _________________________ Bank, further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the performance of the said agreement and that it shall continue to be enforceable till all the dues of the Government under or by virtue of the said Agreement have been fully paid and its claims satisfied or discharged or till DGMAP Ministry of Defence certifies that the terms and conditions of the said Agreement have been fully and properly carried out by the said Contractor(s) and accordingly discharges the guarantee. Unless a demand or claim under this guarantee is made to us in writing on or before the ………………………………. we shall be discharged from all liability under this guarantee thereafter.

4.             We, _________________________ Bank, further agree with the Government that the Government shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said Agreement or to extend time of performance by the said Contractor(s) from time to time or to postpone for any time or from time to time any of the powers exercisable by the Government against the said Contractor(s) and to forbear or enforce any of the terms and conditions relating to the said agreement and we shall not be relieved from our liability by reason of any such variation or extension being granted to the said Contractor(s) or for any forbearance, act or omission on the part of the Government or any indulgence by the Government to the said Contractor(s) or any such matter or thing whatsoever which under the law relating to sureties would but for this provision have effect of so relieving us.

5.             We, _________________________ Bank, lastly undertake not to revoke this guarantee during its currency except with the previous consent of the Government in writing.

Date the _________ day of _____________ 20___________ for _________________________

Bank.