BANK LETTERHEAD

 Buyer's details                                                    Bank details

Performance Bond No. …………………                  Dated……………………

For amount ……………………………                      (in words:………………………..)

We have been informed that you concluded on a contract no………………. with ….(Seller name) …… for purchase ……(commodity name and quantity)……at a total price of……………………. According to this contract, the Seller must provide a perform­ance bond.

This being stated, we, …………..(bank name)…………………… , irrespective of the validity and the legal effects of theabove mentioned contract and waiving all rights of objection and defense arising therefrom, hereby irrevocably undertake to pay to you, upon your first demand, any amount up to the above mentioned maximum amount,………………upon receipt of  your duly signed request for payment in original stating that Seller  have failed to fulfil their  contractual obligations.

For the purpose of identification your written request for payment must bear or be accompanied by a signed confirmation of one of our correspondent banks stating that the latter has verified your signature(s) appearing on the said request for payment.

Your claim is also acceptable if transmitted to us in full by authenticated SWIFT through one of our correspondent banks confirming that your original claim has been forwarded to us by registered mail or courier service and that the said bank has verified your signature(s) appearing thereon.

In case that at the time of a request for payment under this guarantee, there is a client relationship between you and a branch of  ….(bank name and location)………… with a valid list of authorized signatures regarding the persons signing for you, the verification of signature(s) by a third bank is not required. In such case, your request for payment must be presented to us duly signed in writing (SWIFT excluded).

Our guarantee is valid until …………………….and expires in full and automatically, should your original written request for payment or the authenticated SWIFT not be in our possession at our above address on or before that date.

Our guarantee will be reduced by each payment made by us as a result of a claim.

This guarantee is governed by ….(country)…… law, place of jurisdiction and performance is . …………………………….

                         For and on behalf of……...