Bank Guarantee Bond Format in Word

Sample Template Example of a Professional Bank Guarantee Bond Format in Liew of Retention Money / Security Deposit for customs / Tender / GST Bond for Performance Bond / BID Bond / Surety Bond / Insurance Bond / Indemnity Bond etc in Word / Doc / Pdf Free Download

APPENDIX ‘E’

BANK GUARANTEE BOND (IN LIEU OF RETENTION MONEY)

Place of execution _________________________________ Name of State ____________________________

Stamp Paper for Rs _______________________________________________________________

1.         In consideration of the President of India (hereinafter called “the Government”) having agreed not to retain Rs ___________________. (Rupees __________________________________ only) out of the reserve or the retention money as provided under the terms and conditions of Contract Agreement No __________________________ (hereinafter called “the said Agreement”) made between the President of India and Shri/S’ Shri @ ___________________________ from the claims of the said Contractor (s) in respect of the work done by the said Contractor (s) for the due fulfillment by the said Contractor (s) of the terms and conditions contained in the said Agreement, on production of a Bank Guarantee for             Rs. _______________________ (Rupees _________________________________________ only) we, ________________________________ Bank* (hereinafter referred to as “the Bank”), do hereby undertake to pay 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 Agreement.

2.         We, ___________________________ Bank*, do at the request of the said Contractor (s) hereby undertake to pay the amount 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 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 Agreement or by reasons of the said Contractor’s (s’) failure to perform the said Agreement.  Any such demand made on the Bank shall be conclusive as regards the amount due and payable by and the liability of the Bank, under this guarantee and we, ________________________ Bank*, do hereby undertake to pay the Government the amount demanded notwithstanding any dispute or disputes raised by the said contractor (s) on any ground whatsoever and notwithstanding any proceeding pending in any court or tribunal relating to the said Agreement or this Guarantee, the liability of the Bank under this Guarantee being absolute and unconditional.  However, our liability under this Guarantee shall be restricted to an amount not exceeding Rs ___________________________ (Rupees ___________________________________ ______________________________________ only).

APPENDIX ‘E’ (Contd/----)

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 __________________ (Office/ Department), 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 this Guarantee.  Unless a demand or claim under this Guarantee is made on 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 or to vary any of the terms and conditions of the said Agreement or to extend the 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 by 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 and that our liability under this Guarantee shall not be impaired or extinguished on account of any change in the Constitution of the said Contractor (s).”

6.         Notwithstanding what is stated hereinabove our liability under this guarantee is restricted to                        Rs ___________________ (Rupees _____________________________________ only) and shall be valid upto _____________________. Unless a demand/claim is made to us in writing on or before that date we shall be discharged from all liabilities under this guarantee.

7.         Our main / branch office located at _____________ Mumbai undertake to confirm genuineness of the guarantee and that invoked amount, if any, under this guarantee will be paid within 24 hrs of receipt of demand letter from DG (MAP) without referring the matter to the original issuing Bank.

Date the _________ day of _____________ 20___________ for _____________________________ Bank.

_____________________________________________________________________________________

           

APPENDIX ‘E’ (Contd/----)

*In the case of Banks, other than the Nationalized Banks the word ‘Ltd’ will be added after the word ‘Bank’, where the asterisk mark is indicated.

            @

For Proprietorship Concern

            Shri ____________________________ Son of __________________ resident of ________________ ____________________ carrying on business under the name and style of ____________________ at ____________________ (hereinafter called ‘the said Contractors’ which expression shall unless the context requires otherwise include his heirs, executors, administrators and legal representatives).

For Partnership Concerns

(i)            Shri _____________________ Son of ________________ resident of _______________ and

(ii)           Shri ______________________________ Son of ___________________________ resident of  _____________________ carrying on business in co-partnership under the name and style of ____________________ at ______________________ (hereinafter collectively called ‘the said Contractors’ which expression shall unless the context requires otherwise include each of them and their respective heirs, executors, administrators and legal representatives).

For Companies

           

_____________________________ Ltd., an existing Company within the meaning of the Companies Act 1956 and having its registered office at ______________________ in the State of _________________________ (hereinafter called ‘the said Contractor’ which expression shall unless the context requires otherwise include their successors and assigns).

Contractor                                                       DEPMC                                               Accepting Officer