According to No. Contract (hereafter referred to as “Contract”) signed
between you and the applicant______ (hereafter referred to as
“Applicant”) in contract-signing place on the day of , 20 , we, the
Bank, hereby issue the Performance Guarantee in favor of the
beneficiary, and undertake to pay you any sum or sums not exceeding in
total an amount of _________________ (currency type, in words), i.e. ％
of contract value, to guarantee the applicant will perform the
obligations under the contract on schedule.
In the case that the Applicant cannot fulfill its obligations under the
Contract on schedule, we will pay the amount recorded in the notice of
claim to you within 7 bank working days upon receiving the documents
that conform to the following conditions. However, the amount of one
single claim or the total amount of all claims in the notice(s) of
claim(s) shall not exceed the maximum amount of this Performance
Guarantee. The responsibilities of our bank under this Performance
Guarantee are subject to the maximum guaranteed amount.
Claim documents: (1) Notice of Claim signed by the legal representative
of your party or authorized representative by this legal representative;
(2) Statement of Default signed by the legal representative of your
party or authorized representative by this legal representative;
The maximum amount guaranteed under this Performance Guarantee shall be
reduced automatically and progressively as the completion percentage of
the Contract increases. Our responsibilities under this Performance
Guarantee shall not exceed ％ of the amount that equals to the
obligations not fulfilled under the Contract. The completion progress of
the Contract shall be subject to the certificate we receive issued by
independent third party.
This Guarantee takes effect on the date of being signed, and expires on
the day of , 20 . Any claim must be received by us before or on the
expiration date. After the expiration date, whether the original copy of
this Guarantee is returned to us or not, this Guarantee becomes invalid
Without our written permit, the guarantee obligations of us shall be
ceased if you and the applicant agree to modify the Contract or the
Without the consent of our Bank, this Guarantee shall not be
This Guarantee is subject to Chinese laws. Any disputes under this
Guarantee shall be under the control of the local court in the place
where our bank is located.
Bank of Communications Branch
Legal Representative or Authorized Representative
day of , 20 .