[bank’s letterhead] Beneficiary: [insert legal name and address of Purchaser] ADVANCE PAYMENT GUARANTEE No.: [insert Advance Payment Guarantee no.] We, have been informed that [insert legal name and address of bank], [insert complete name (hereinafter called "the Supplier") has entered into Contract No. and address of Supplier] dated with you, for the supply of [insert number] [insert date of Contract] [insert types of (hereinafter called "the Contract"). Goods to be delivered] Furthermore, we understand that, according to the conditions of the Contract, an advance payment is to be made against an advance payment guarantee. At the request of the Supplier, we hereby irrevocably undertake to pay you any sum or sums not exceeding in an amount of upon receipt by [insert amount(s) in figures and words] us of your first demand in writing declaring that the Supplier is in breach of its obligation under the Contract because the Supplier used the advance payment for purposes other than toward delivery of the Goods. It is a condition for any and payment under this Guarantee to be made that the advance payment referred to above must have been received by the Supplier in its account [insert number and domicile of the account] This Guarantee shall remain valid and in full effect from the date of the advance payment received by the Supplier under the Contract until We agree to a one-time [insert date]. extension of this Guarantee for a period not to exceed in response to [six months][one year], the Purchaser’s written request for such extension, such request to be presented to us before the expiry of the Guarantee. _____________________ [signature(s) of authorized representative(s) of the bank] Attachment: Sample Format for Invitation for Bids Invitation for Bids (IFB) Bhutan [ insert name of Project ] [ insert IFB title and Number ]
[bank’s letterhead] Beneficiary: [insert legal name and address of Purchaser] ADVANCE PAYMENT GUARANTEE No.: [insert Advance Payment Guarantee no.] We, [insert legal name and address of bank], have been informed that [insert complete name and address of Supplier] (hereinafter called "the Supplier") has entered into Contract No. [insert number] dated [insert date of Contract] with you, for the supply of [insert types of Goods to be delivered] (hereinafter called "the Contract"). Furthermore, we understand that, according to the conditions of the Contract, an advance payment is to be made against an advance payment guarantee. At the request of the Supplier, we hereby irrevocably undertake to pay you any sum or sums not exceeding in an amount of [insert amount(s) in figures and words] upon receipt by us of your first demand in writing declaring that the Supplier is in breach of its obligation under the Contract because the Supplier used the advance payment for purposes other than toward delivery of the Goods. It is a condition for any and payment under this Guarantee to be made that the advance payment referred to above must have been received by the Supplier in its account [insert number and domicile of the account] This Guarantee shall remain valid and in full effect from the date of the advance payment received by the Supplier under the Contract until [insert date]. We agree to a one-time extension of this Guarantee for a period not to exceed [six months][one year], in response to the Purchaser’s written request for such extension, such request to be presented to us before the expiry of the Guarantee. _____________________ [signature(s) of authorized representative(s) of the bank] Attachment: Sample Format for Invitation for Bids Invitation for Bids (IFB) Bhutan [ insert name of Project ] [ insert IFB title and Number ]
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