Ƶ

Bank Guarantee Letter Of Credit for Philippines

Bank Guarantee Letter Of Credit Template for Philippines

A Bank Guarantee Letter of Credit is a formal financial instrument issued by a bank in the Philippines, governed by Philippine banking laws and regulations, particularly Republic Act No. 8791 (The General Banking Law of 2000) and BSP Circular No. 1028. This document represents a bank's irrevocable commitment to pay a specified sum to a beneficiary upon the presentation of compliant documents. It incorporates international banking practices through UCP 600 while maintaining compliance with Philippine legal requirements, serving as a crucial tool for securing commercial transactions and international trade dealings.

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
Bank Guarantee 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 Bank Guarantee Letter Of Credit?

The Bank Guarantee Letter of Credit is a fundamental financial instrument used in both domestic and international commercial transactions in the Philippines. This document is typically employed when parties seek a secure payment mechanism or financial guarantee, particularly in trade finance, construction projects, or large commercial dealings. The document must comply with Philippine banking regulations, including The General Banking Law of 2000 and BSP directives, while also adhering to international banking standards such as UCP 600. It provides the beneficiary with the security of payment from a reliable financial institution, contingent upon the presentation of specified documents that comply with the terms and conditions stated in the letter of credit. The document's structure and content are designed to meet both local Philippine legal requirements and international banking practices, making it a versatile instrument for various commercial purposes.

What sections should be included in a Bank Guarantee Letter Of Credit?

1. Bank Details and Reference Number: Issuing bank's complete details, letter of credit number, and date of issuance

2. Beneficiary Information: Complete name and address of the party in whose favor the letter of credit is issued

3. Applicant Information: Complete name and address of the party requesting the letter of credit

4. Currency and Amount: Specification of the currency and exact amount of the letter of credit, both in figures and words

5. Type and Nature: Specification that this is an irrevocable letter of credit and its nature (e.g., standby, commercial)

6. Expiry Details: Clear statement of expiry date and place

7. Drawing Terms: Specific conditions and documentation required for drawing under the letter of credit

8. Payment Terms: Details of how and when payment will be made upon presentation of compliant documents

9. Governing Law and Jurisdiction: Statement that the letter is subject to Philippine law and UCP 600

10. Authentication: Official bank signatures, stamps, and authentication details

What sections are optional to include in a Bank Guarantee Letter Of Credit?

1. Partial Shipments/Drawings: Include when the credit allows or prohibits partial shipments or drawings

2. Transferability Clause: Include when the letter of credit is transferable to other beneficiaries

3. Special Conditions: Include when there are additional requirements or conditions specific to the transaction

4. Red Clause: Include when advance payment provisions are required

5. Green Clause: Include when warehouse storage-related provisions are needed

6. Force Majeure: Include when specific force majeure provisions are required beyond standard UCP terms

What schedules should be included in a Bank Guarantee Letter Of Credit?

1. Schedule A - Required Documents: Detailed list of all required documents for drawing under the LC (e.g., commercial invoice, transport documents, insurance documents)

2. Schedule B - Technical Specifications: When applicable, detailed specifications of goods or services covered by the LC

3. Schedule C - Drawing Schedule: If multiple drawings are allowed, schedule of permitted drawing dates and amounts

4. Appendix 1 - Form of Demand: Standard format for making a demand under the letter of credit

5. Appendix 2 - Form of Transfer Request: If transferable, standard format for requesting transfer of the letter of credit

6. Appendix 3 - Specimen Signatures: Authorized signatures for the relevant parties

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

Philippines

Publisher

Ƶ

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use
Relevant legal definitions










































Clauses

























Relevant Industries

Banking and Financial Services

International Trade

Manufacturing

Construction

Energy

Import/Export

Retail

Commodities Trading

Infrastructure

Telecommunications

Agriculture

Mining

Relevant Teams

Legal

Finance

Treasury

Trade Finance

Risk Management

Compliance

International Banking

Commercial Operations

Credit Administration

Documentary Credits

Corporate Banking

Relevant Roles

Trade Finance Manager

Credit Manager

Financial Controller

Treasury Manager

Import/Export Manager

Chief Financial Officer

Banking Relationship Manager

Commercial Director

Risk Manager

Documentary Credits Specialist

International Trade Specialist

Compliance Officer

Legal Counsel

Account Manager

Operations 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

Bank Guarantee Cheque

A Philippine-law governed financial instrument where a bank guarantees payment to a beneficiary on behalf of its client, subject to specified terms and conditions.

find out more

Special Bank Guarantee

A Philippine bank-issued guarantee document that provides financial security to a beneficiary in case of default by the principal, governed by Philippine banking laws.

find out more

Bank Guarantee For House Deposit

A Philippine law-governed bank guarantee document securing house deposit payments in property transactions, issued by a bank to protect the seller's interests while facilitating the buyer's purchase.

find out more

Cheque Guarantee Letter

A Philippine bank's formal guarantee to honor specific cheque(s) issued by their client, governed by Philippine banking laws and regulations.

find out more

Bank Guarantee Loan

A Philippine law-governed agreement establishing terms and conditions for a bank guarantee loan, including parties' obligations, payment terms, and security arrangements.

find out more

Bank Guarantee Security

A Philippine law-governed banking document establishing terms and conditions for a bank's guarantee of a third party's obligations, regulated by the Bangko Sentral ng Pilipinas.

find out more

Standby Letter Of Guarantee

A Philippine law-governed bank guarantee that provides financial security for payment or performance obligations, issued by a bank to benefit a third party.

find out more

Security Bank Guarantee

A Philippine-law governed bank guarantee document where a bank provides financial security for a principal's obligations to a beneficiary, subject to BSP regulations.

find out more

Guarantee Cheque Against Advance Payment

A Philippine law-governed agreement securing advance payment through a guarantee cheque, outlining terms, conditions, and remedies for all parties involved.

find out more

Bank Guarantee For Supply Of Goods

A Philippine law-governed bank guarantee that secures a buyer's payment in case a supplier fails to fulfill its supply contract obligations.

find out more

Bank Guarantee For Performance Security

A Philippine-law governed bank guarantee document where a bank provides financial security for a principal's performance obligations, subject to Philippine banking regulations and legal framework.

find out more

Cash Bank Guarantee

A Philippine-law governed bank guarantee document backed by cash deposit, establishing the bank's obligation to pay a beneficiary upon valid demand.

find out more

Government Guarantee Term Deposits

A Philippine-law governed agreement for government-guaranteed term deposits, establishing deposit terms and guarantee mechanisms under local banking regulations.

find out more

Deferred Bank Guarantee

A Philippine law-governed deferred bank guarantee document establishing a bank's commitment to pay a beneficiary upon demand, subject to specified deferral conditions.

find out more

Term Deposit Guarantee

A Philippine law-governed agreement establishing guarantee arrangements for term deposits, detailing security provisions and regulatory compliance requirements.

find out more

Banker's Guarantee For Individual

A Philippine-compliant banking document where a bank guarantees payment to a beneficiary on behalf of an individual customer if specified obligations are not met.

find out more

Bank Guarantor Letter

A Philippine-compliant banking document where a bank guarantees payment or performance on behalf of their client to a beneficiary, subject to BSP regulations.

find out more

Bank Account Guarantee

A Philippine-law governed bank guarantee document where a bank guarantees specified financial obligations of an account holder to a beneficiary, subject to BSP regulations.

find out more

Bank Account Government Guarantee

A Philippine law-governed document establishing government guarantee terms for specified bank accounts, ensuring government backing under defined conditions.

find out more

Composite Bank Guarantee

A Philippine law-governed banking instrument that combines multiple guarantee obligations into a single comprehensive security document, providing consolidated coverage for complex commercial transactions.

find out more

Down Payment Bank Guarantee

A Philippine law-governed bank guarantee securing advance payments made to contractors/suppliers, providing financial security to buyers/employers under BSP regulations.

find out more

Financial Bank Guarantee

A Philippine-law governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon certain conditions or default events, subject to local banking regulations.

find out more

Deposit Guarantee

A Philippine law-governed agreement establishing terms and conditions for guaranteeing specified deposits, including coverage, claims procedures, and regulatory compliance requirements.

find out more

Bid Security Bank Guarantee

A Philippine bank-issued guarantee ensuring a bidder's commitment to their bid in government procurement processes, governed by RA 9184.

find out more

Bank Guarantee For Deposit

A Philippine law-governed bank guarantee document where a bank guarantees payment obligations related to deposits on behalf of their customer to a beneficiary.

find out more

Surety Bond Bank Guarantee

A Philippine law-governed bank guarantee document where a bank guarantees the obligations of a principal debtor to a beneficiary, subject to BSP regulations.

find out more

Bank Surety Letter

A Philippine bank-issued guarantee document that provides financial security for a client's obligations to a third party, governed by Philippine banking laws.

find out more

Bank Guarantee For Rent

A Philippine law-governed bank guarantee securing rental payments to a landlord, where a bank guarantees rent payment on behalf of a tenant.

find out more

Advance Bank Guarantee

A Philippine-compliant bank guarantee document securing advance payments in commercial transactions, governed by local banking laws and BSP regulations.

find out more

Domestic Bank Guarantee

A Philippine bank's formal undertaking to pay a specified sum to a beneficiary if the principal defaults, governed by Philippine banking laws and regulations.

find out more

Bank Guarantee For Tender

A Philippine-compliant financial instrument issued by a bank to guarantee a bidder's obligations in a tender process, providing security to the tender issuer.

find out more

Non Financial Guarantee

A Philippine law-governed guarantee agreement securing non-financial performance obligations between parties, providing enforcement mechanisms and remedies under local jurisdiction.

find out more

Drawdown Bank Guarantee

A Philippine law-governed bank guarantee allowing multiple partial drawings against a maximum guaranteed amount, providing flexible financial security under BSP regulations.

find out more

Corporate Bank Guarantee

A Philippine-law governed bank guarantee document where a bank guarantees a corporate client's obligations to a beneficiary, subject to BSP regulations.

find out more

Bank Guarantee For Lost Bill Of Lading

A Philippine law-governed bank guarantee that indemnifies carriers against risks associated with issuing duplicate bills of lading when originals are lost.

find out more

Bank Guarantee For Commercial Lease

A Philippine law-governed bank guarantee securing a tenant's financial obligations under a commercial lease, providing landlords with bank-backed payment security.

find out more

Guarantee Letter

A formal written commitment under Philippine law where a guarantor promises to fulfill another party's obligations if they default.

find out more

Counter Standby Letter Of Credit

A Philippine-law governed banking instrument that provides a counter-guarantee to a primary Standby Letter of Credit, establishing terms and obligations for all parties involved.

find out more

Standby Letter Of Credit And Bank Guarantee

A Philippine law-governed banking instrument combining Standby Letter of Credit and Bank Guarantee features, providing financial security through bank payment commitments upon specified conditions.

find out more

Bank Guarantee Letter Of Credit

A Philippine-law governed bank guarantee letter of credit providing financial security in commercial transactions, issued under RA 8791 and BSP 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