Ƶ

Performance Standby Letter Of Credit for Malaysia

Performance Standby Letter Of Credit Template for Malaysia

A Performance Standby Letter of Credit under Malaysian law is a bank-issued instrument that provides a guarantee of performance for specified obligations. This document, governed by Malaysian legislation including the Financial Services Act 2013 and aligned with international banking practices, serves as a security instrument where the bank commits to pay a specified amount to the beneficiary upon presentation of compliant documents evidencing a performance default. The document incorporates specific Malaysian legal requirements while maintaining international banking standards, making it suitable for both domestic and cross-border transactions.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Performance Standby Letter Of Credit

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Performance Standby Letter Of Credit?

The Performance Standby Letter of Credit is a crucial financial instrument used in Malaysian business transactions where one party seeks security for another party's performance obligations. This document is commonly used in large-scale projects, international trade, and significant commercial contracts where performance risk needs to be mitigated. The instrument, governed by Malaysian law and regulated under the Financial Services Act 2013, provides a bank's independent commitment to pay upon presentation of specified documents indicating a performance default. It differs from traditional bank guarantees in its format and compliance with international standby letter of credit practices (ISP98). The document is particularly valuable in cross-border transactions where Malaysian entities are involved, as it combines local legal compliance with internationally recognized banking practices.

What sections should be included in a Performance Standby Letter Of Credit?

1. Issuing Bank Details: Full name and address of the bank issuing the SBLC

2. Reference Number: Unique identifier for the SBLC

3. Date of Issue: Date when the SBLC becomes effective

4. Beneficiary Details: Full name and address of the party in whose favor the SBLC is issued

5. Applicant Details: Full name and address of the party requesting the SBLC

6. Amount: Maximum amount available under the SBLC and currency

7. Expiry Date: Date and place of expiry of the SBLC

8. Underlying Transaction: Reference to the contract or obligation being guaranteed

9. Drawing Terms: Conditions and documentation required for making a demand under the SBLC

10. Governing Law: Specification of Malaysian law as the governing law

11. Form of Demand: Required format and content of any demand under the SBLC

What sections are optional to include in a Performance Standby Letter Of Credit?

1. Transferability Clause: Include when the SBLC needs to be transferable to another beneficiary

2. Partial Drawings: Include when multiple partial drawings are to be permitted

3. Reduction Schedule: Include when the SBLC amount should reduce over time according to a schedule

4. Multiple Currencies: Include when drawings can be made in different currencies

5. Electronic Presentation: Include when electronic presentation of documents is permitted

6. Force Majeure: Include when specific force majeure provisions are required

7. Assignment Rights: Include when proceeds of the SBLC can be assigned to third parties

What schedules should be included in a Performance Standby Letter Of Credit?

1. Schedule 1 - Form of Demand: Template demand letter format that must be used when making a claim

2. Schedule 2 - Required Documents: List of supporting documents required with any demand

3. Schedule 3 - Performance Standards: Specific performance criteria that trigger the right to make a demand

4. Schedule 4 - Reduction Schedule: If applicable, schedule showing automatic reductions in the SBLC amount

5. Appendix A - Underlying Contract Reference: Key details from the underlying contract being guaranteed

6. Appendix B - Communication Procedures: Procedures for making demands and communications under the SBLC

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use
Relevant legal definitions

























Clauses




















Relevant Industries

Banking and Financial Services

Construction and Infrastructure

International Trade

Manufacturing

Energy and Utilities

Oil and Gas

Mining

Telecommunications

Real Estate Development

Engineering Services

Project Development

Government and Public Sector

Relevant Teams

Legal

Finance

Treasury

Risk Management

Procurement

Commercial Operations

Project Management

Trade Finance

Credit

Operations

Business Development

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Project Manager

Contract Manager

Legal Counsel

Risk Manager

Commercial Director

Trade Finance Manager

Banking Relationship Manager

Procurement Manager

Company Secretary

Credit Manager

Operations Director

Business Development Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Foreign Bank Guarantee

A Malaysian law-governed bank guarantee instrument providing financial security in cross-border transactions, issued by a bank to protect beneficiary interests.

find out more

Bank Guarantee Return Letter

A Malaysian legal document used to formally return a bank guarantee to the issuing bank and release it from obligations under Malaysian banking regulations.

find out more

International Bank Guarantee

A Malaysian law-governed bank guarantee providing financial security in international transactions through an irrevocable undertaking from a bank to pay a specified sum upon defined conditions.

find out more

Business Loan Guarantee

A Malaysian law-governed agreement where a guarantor secures a borrower's business loan obligations to a lender.

find out more

Performance Bond Guarantee

A Malaysian law-governed financial guarantee instrument where a bank ensures payment to a beneficiary if a contractor fails to meet contractual obligations.

find out more

Cheque Guarantee Letter

A Malaysian banking instrument where a bank guarantees payment of a specific cheque to the beneficiary under Malaysian law.

find out more

Guarantee Letter Payment

A Malaysian law-governed financial instrument where a guarantor commits to pay a specified sum to a beneficiary upon demand or specified conditions.

find out more

Bank Financial Guarantee

A Malaysian law-governed bank guarantee document where a bank undertakes to pay a specified sum to a beneficiary upon default of the principal debtor.

find out more

Contract Performance Bank Guarantee

A Malaysian law-governed bank guarantee securing a contractor's performance obligations, providing financial security to the project owner through an independent bank undertaking.

find out more

Post Bank Guarantee

A Malaysian law-governed bank guarantee document where a bank guarantees payment or performance to a beneficiary on behalf of its client.

find out more

Fast Bank Guarantee

A Malaysian banking instrument providing quick, unconditional payment guarantee from a bank to a beneficiary upon demand, governed by Malaysian financial regulations.

find out more

Bank Transfer Guarantee

A Malaysian law-governed banking instrument where a bank guarantees payment transfer to a beneficiary upon compliant demand.

find out more

Bank Personal Guarantee

A Malaysian law-governed document where a guarantor provides personal security to a bank for a third party's obligations.

find out more

Contra Bank Guarantee

A Malaysian law-governed financial instrument where a bank issues a guarantee in response to another bank's guarantee, establishing reciprocal obligations between financial institutions.

find out more

Letter Of Credit Guarantee

A Malaysian law-governed bank guarantee securing payment obligations under a letter of credit, regulated by the Financial Services Act 2013 and Bank Negara Malaysia guidelines.

find out more

Original Bank Guarantee

A Malaysian law-governed bank undertaking to pay a specified sum to a beneficiary upon demand, serving as security for the principal's obligations.

find out more

Performance Guarantee In Tender

A Malaysian law-governed financial guarantee issued by a bank to secure a tender participant's obligations to the tender issuer.

find out more

Construction Bank Guarantee

A Malaysian law-governed bank guarantee securing contractor obligations in construction projects, providing financial security to project owners.

find out more

Bank Endorsement Guarantee

A Malaysian law-governed bank guarantee document where a financial institution guarantees the obligations of its client to a third party, subject to Malaysian banking regulations.

find out more

Authorization Letter To Collect Bank Guarantee

A Malaysian law-compliant authorization letter empowering a designated person to collect a bank guarantee from a financial institution.

find out more

Performance Bank Guarantee In Tender

A Malaysian law-governed bank guarantee securing a tender participant's performance obligations, where the bank promises to pay the beneficiary if the principal defaults on tender commitments.

find out more

Indirect Bank Guarantee

A Malaysian law-governed financial instrument where a local bank issues a guarantee based on a foreign bank's counter-guarantee to a local beneficiary.

find out more

Standby Letter Of Credit For Lease

A Malaysian law-governed banking instrument that provides security to landlords against tenant default under lease agreements, issued by banks as an alternative to traditional security deposits.

find out more

Bank To Bank Guarantee

Malaysian law-compliant Bank to Bank Guarantee template establishing guarantee obligations between financial institutions under FSA 2013 and BNM regulations.

find out more

Bank Guarantee Transferable

A Malaysian law-governed bank guarantee that allows the beneficiary to transfer their rights to a new beneficiary, subject to specified terms and conditions.

find out more

Unsecured Bank Guarantee

A Malaysian law-governed financial instrument where a bank provides an unconditional guarantee to pay a beneficiary upon demand, without securing collateral from the applicant.

find out more

Domestic Bank Guarantee

A Malaysian law-governed bank guarantee document where a bank provides an irrevocable undertaking to pay a specified sum to a beneficiary upon demand in domestic transactions.

find out more

Non Financial Guarantee

A Malaysian law-governed agreement where a Guarantor guarantees the non-financial obligations of a Principal to a Beneficiary.

find out more

Digital Bank Guarantee

A digitally-issued bank guarantee under Malaysian law, providing secure electronic payment assurance from a bank to a beneficiary on behalf of an applicant.

find out more

Drawdown Bank Guarantee

A Malaysian law-governed bank guarantee allowing specified drawdowns against a guaranteed amount, providing financial security in commercial transactions.

find out more

Corporate Bank Guarantee

A Malaysian law-governed bank guarantee where a bank guarantees payment or performance on behalf of a corporate client to a beneficiary.

find out more

Bank Guarantee For Commercial Lease

A Malaysian law-governed bank guarantee providing security to a landlord for a tenant's obligations under a commercial lease agreement.

find out more

Guarantee Letter

A Malaysian law-governed document where a guarantor commits to fulfill another party's obligations to a creditor if the primary debtor defaults.

find out more

Counter Standby Letter Of Credit

A Malaysian-law governed banking instrument that serves as a counter-guarantee supporting a primary Standby Letter of Credit issuance.

find out more

Standby Letter Of Credit And Bank Guarantee

A Malaysian law-governed financial security instrument combining Standby Letter of Credit and Bank Guarantee provisions, ensuring payment or performance obligations through bank-backed guarantees.

find out more

Advising Bank In Bank Guarantee

Malaysian law agreement governing an Advising Bank's roles and responsibilities in bank guarantee arrangements, including authentication and communication protocols.

find out more

Trade Finance Bank Guarantee

A Malaysian-law governed bank guarantee instrument providing financial security in trade transactions, issued by a bank to protect beneficiaries against non-performance or default.

find out more

Letter Of Credit And Standby Letter Of Credit

A Malaysian law-governed banking instrument that provides payment assurance in international trade transactions, subject to document compliance and banking regulations.

find out more

Bank Credit Guarantee

A Malaysian law-governed Bank Credit Guarantee agreement establishing security for banking facilities through guarantor undertakings, compliant with local banking regulations.

find out more

Bank Assurance Letter

A Malaysian banking instrument providing financial guarantee or assurance from a bank to a beneficiary regarding a third party's obligations, subject to Malaysian banking regulations.

find out more
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it