Book traversal links for النماذج الجديدة لخطابات الضمان ابتدائية - نهائية- دفعة مقدمة
GDBC-111000000251-1411H
No: 7821/BC/251 |
Effective from Dec 01 1991 - Nov 30 1991
To view other versions open the versions tab on the right
The Office of the Governor
No.: 7821/BC/251
Date: 4-7-1411 H
(19-1-1991A.D)
Attachments : 9
Circular to All Banks Operating in The Kingdom
Greetings,
Re SAMA circular 8260/BC/152 dated 15-6-1408H (3-2-1988), and the attached letter of HE the Minster of Finance & National Economy No. 17/67 dated 2-4-1408H related to the rules of bank guarantees, we hereby attach the new forms of bank guarantees (preliminary, final and advance payment) and the relevant extension forms.
We wish to advise you that HE the Minister of Finance & National Economy has approved in his letter No. 3/3321 dated 14-5-1411 the use of these forms instead of the currently used forms attached to the old bank guarantees rules circulated to the banks via the above mentioned circular.
The new forms contained some material amendments aimed at regulating the procedures of confiscation and extension and enhancing confidence in letters of guarantee. Among such material amendments are the following:
Emphasizing that the relation between the bank issuing the letter of guarantee and the beneficiary is a direct relation independent of any other relation between any of the two parities and third parties. This means the extension request must be addressed by the beneficiary directly to the issuing bank which will effect the extension for a period not exceeding 365 days each time. It further means that the issuing bank, in the event it fails to effect extension, has to pay the value of the guarantee to the beneficiary.
In order for the issuing bank to be able to collect the value of the confiscated guarantee from its client, banks should insist on the client who requests the issuance of a letter of guarantee to irrevocably agree that the issuing
bank can extend the validity of the guarantee, at beneficiary request for any period (s), without the consent of the client and notwithstanding any objection thereby, provided the extension should not exceed 365 days each time. In the event the bank fails to extend before the expiry of the guarantee, it shall have to pay the guarantee value to the beneficiary.
- The new forms did not include the provision which required the beneficiary, in its sole discretion, to prove any default in the performance of the contract between beneficiary and the opener of the guarantee, in order not to be construed as a conditional letter of guarantee or used as a means to weaken the guarantee.
The new forms specifically provided for the sole jurisprudence of Saudi courts to rule on any dispute according to Saudi laws and regulations.
Banks are not allowed to issue new letters of guarantee or to accept foreign guarantees not in conformity with the new forms, unless SAMA otherwise approves. Guarantees submitted by foreign banks in English may be accepted, if in conformity with the new forms (with Arabic translation attached). The covering letter sent by the local bank to the beneficiary must be accompanied by an Arabic translation certified by the bank so that the contents of the guarantee could be understood.
With the exception of above mentioned amendments, all other rules related to bank guarantees, as per circular 8260/BC/152 dated 15-6-1408H shall remain in force.
Please act accordingly.
Regards
The Governor
H. Al-Sayari
Letter of Guarantee for Advance Payment
His Excellency Place.......................Number ..………………… Date….………………… Since your have awarded our clients Messrs ("the Contractor") a contract ("the Contract") for…………….(Description and Identity of the Project) and since you have agreed to reimburse to the Contractor an advance payment ("the Advance Payment") up to % of the value of the Contract we………………. ("the Guarantor") hereby irrevocably and unconditionally guarantee the payment to you of Saudi Riyals………………representing the amount of the Advance Payment and accordingly covenant and agree as follows:
(a) The guarantor shall forthwith on demand made by you in writing and notwithstanding any objection by the Contractor pay you such amount or amounts as you shall require not exceeding in aggregate the above mentioned amount of Saudi Riyals …………………. by transfer to an account in your name at such bank in Saudi Arabia as you shall stipulate or in such other manner as shall be acceptable to you.
(b) Any payment made hereunder shall be made free and clear of, and without deduction for or on account of, any present or future taxes, levies, imposts, duties, charges, fees, deductions or withholdings of any nature whatsoever and by whomsoever imposed.
(c) The covenants herein contained constitute unconditional and irrevocable direct primary obligations of the Guarantor. No alteration in the terms of the Contract and no modification or extension of the Contract or in the extent or nature of the work to be performed thereunder and no indulgence, allowance of time by you or other forbearance or concession or any other act or omission by you which but for this provision might exonerate or discharge the Guarantor shall in any way release the Guarantor from any liability hereunder.
(d) This guarantee shall remain valid and in full force and effect upto the end of the …………… day of ……………… of the year ………… provided that it is a condition of this guarantee that, in the event you give the guarantor on or prior to the said expiry date of this guarantee (or any subsequent extension of that expiry date in accordance with this proviso) signed written notification requesting an extension, the Guarantor will (a) automatically extend this guarantee for such period (not exceeding 365 days) from that expiry date or extension as you may specity in that notification or (b) pay the amount of the guarantee.
(e) The Guarantor represents and warrants that the amount of the guarantee gerein contained does not exceed 20 per cent of the total of the paid up Capital and Reserves of the Guarantor.
(f) This guarantee is governed by and shall be construed in accordance with the laws and regulations of the Kingdom of Saudi Arabia.
(Authorised Signature)
(Bank)
Head Office
Letter of Guarantee for Advance Payment
His Excellency.... Place …………………. Number …………………. Date …………………. Since your have awarded our clients Messrs …………………. ("the Contractor") a contract ("the Contract") for …………………. (Description and Identity of the Project) and since you have agreed to reimburse to the Contractor an advance payment ("the Advance Payment") up to % of the value of the Contract we …………………. ("the Guarantor") hereby irrevocably and unconditionally guarantee the payment to you of Saudi Riyals …………………. representing the amount of the Advance Payment and accordingly covenant and agree as follows:
(a) The guarantor shall forthwith on demand made by you in writing and notwithstanding any objection by the Contractor pay you such amount or amounts as you shall require not exceeding in aggregate the above mentioned amount of Saudi Riyals …………………. by transfer to an account in your name at such bank in Saudi Arabia as you shall stipulate or in such other manner as shall be acceptable to you.
(b) Any payment made hereunder shall be made free and clear of, and without deduction for or on account of, any present or future taxes, levies, imposts, duties, charges, fees, deductions or withholdings of any nature whatsoever and by whomsoever imposed.
(c) The covenants herein contained constitute unconditional and irrevocable direct primary obligations of the Guarantor. No alteration in the terms of the Contract and no modification or extension of the Contract or in the extent or nature of the work to be performed thereunder and no indulgence, allowance of time by you or other forbearance or concession or any other act or omission by you which but for this provision might exonerate or discharge the Guarantor shall in any way release the Guarantor from any liability hereunder.
(d) This guarantee shall remain valid and in full force and effect up to the end of the …………………. day of …………………. of the year …………………. provided that it is a condition of this guarantee that, in the event you give the guarantor on or prior to the said expiry date of this guarantee (or any subsequent extension of that expiry date in accordance with this proviso) signed written notification requesting an extension, the Guarantor will (a) automatically extend this guarantee for such period (not exceeding 365 days) from that expiry date or extension as you may specify in that notification or (b) pay the amount of the guarantee.
(e) The Guarantor represents and warrants that the amount of the guarantee gerein contained does not exceed 20 per cent of the total of the paid up Capital and Reserves of the Guarantor.
(f) This guarantee is governed by and shall be construed in accordance with the laws and regulations of the Kingdom of Saudi Arabia.
(Authorised Signature)
(Bank)
Head Office
Letter of Preliminary Guarantee
His Excellency.....................Place. Number ………… Date ………… Since our clients Messrs …………………. ("the Contractor") have submitted their bid to perform (or supply). (State information concerning the purpose of operation) we …………………. ("the Guarantor") hereby (name of Bank)
irrevocably and unconditionally guarantee the payment to you of Saudi Riyals ……………….…… being ……………% of the value of the bid they submitted pursuant to the tender invitation, and accordingly covenant and agree as follows:
(a) The guarantor shall forthwith on demand made by you in writing and notwithstanding any objection by the Contractor pay you such amount or amounts as you shall require not exceeding in aggregate the above mentioned amount of Saudi Riyals …………………. by transfer to an account in your name at such bank in Saudi Arabia as you shall stipulate or in such other manner as shall be acceptable to you.
(b) Any payment made hereunder shall be made free and clear of, and without deduction for or on account of, any present or future taxes, levies, imposts, duties, charges, fees, deductions or withholdings of any nature whatsoever and by whomsoever imposed.
(c) The covenants herein contained constitute unconditional and irrevocable direct primary obligations of the Guarantor. No alteration in the terms of the Contract and no modification or extension of the Contract or in the extent or nature of the work to be performed thereunder and no indulgence, allowance of time by you or other forbearance or concession or any other act or omission by you which but for this provision might exonerate or discharge the Guarantor shall in any way release the Guarantor from any liability hereunder.
(d) This guarantee shall remain valid and in full force and effect up to the end of the …………………. day of …………………. of the year …………………. provided that it is a condition of this guarantee that, in the event you give the guarantor on or prior to the said expiry date of this guarantee (or any subsequent extension of that expiry date in accordance with this proviso) signed written notification requesting an extension, the Guarantor will (a) automatically extend this guarantee for such period (not exceeding 365 days) from that expiry date or extension as you may specify in that notification or (b) pay the amount of the guarantee.
(d) The Guarantor represents and warrants that the amount of the guarantee gerein contained does not exceed 20 per cent of the total of the paid up Capital and Reserves of the Guarantor.
(e) This guarantee is governed by and shall be construed in accordance with the laws and regulations of the Kingdom of Saudi Arabia.
(Authorised Signature)
(Bank)
Head Office
Form of Request for Extension of A Preliminary Guarantee
Ref: --------------------------------------
Date://14 H
//
Messrs : ( The Bank)
Greetings :
With reference to the preliminary guarantee issued by you in our favour by you under No. _____________ dated __________________ for the sum of SR.
(SR____________________only) as requested by your clients, , in connection with their offer for _____(operation)____; and
Whereas, the said guarantee expires on ___/___/___; and we have not been able to decide on the above mentioned tender; and
Whereas, we have not yet received from the applicant for the guarantee any evidence of the withdrawal of their offer, and in accordance with Article (9) of the Implementing Rules of the Regulation for Procurement of Government Purchases, which provides that a preliminary guarantee should remain valid until the date specified for deciding upon the tender; and
Pursuant to Article (10) of the above-mentioned Rules, which provides that an offer should remain valid and irrevocable until the date specified for deciding upon the offers, and that the concerned authority can request the offeror to extend the validity of his offer and that if the offeror has not requested that his offer be withdrawn and his guarantee returned after the expiration date of the guarantee he will be considered willing to remain committed to his offer:
We hereby request you to extend this guarantee for a period of with effect from its expiry date mentioned above and in the event you do not effect the required extension and provide us with evidence thereof before the expiration of the period of validity of the guarantee, we wish that the guarantee be called and that we be paid its value.
Regards:
Name:
Signature:
Extension of Final Guarantee Form
No.: / /
Date: / /
Corresponding to: / /
Messrs. (The Bank)
Greetings,
Re unconditional letter of guarantee issued in our favor No. dated// in the amount of SR (only Saudi Riyal) which expires on ; and
Re paragraph (d) of this guarantee, under which you undertook to extend its validity upon our request for a period not exceeding 365 days,
We hereby request you to extend this guarantee for a period of as of the date of its expiry set forth above. In the event you fail to effect the requested extension and provide us with documentary evidence before the expiry date of the guarantee, we kindly request you to confiscate the guarantee and advise us accordingly.
Regards:
Name:
Signature:
Extension of Advance Payment Guarantee Form
No.: / /
Date: / /
Corresponding to: / /
Messrs. (The Bank)
Greetings,
Re unconditional advance payment letter of guarantee issued in our favor No. dated ____/____/_____ in the amount of SR(only Saudi Riyal ___________) which expires on ; and
Re paragraph (d) of this guarantee, under which you undertook to extend its validity upon our request for a period not exceeding 365 days,
We hereby request you to extend this guarantee for a period of starting as of its date of expiry set forth above, reducing its value by the same amount already recovered to become SR ___________ (Saudi Riyal_____________). In the event you fail to effect the requested extension and provide us with documentary evidence before the expiry date of the guarantee, we kindly request you to confiscate the guarantee and advise us accordingly.
Regards:
Name:
Signature: