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A Conditional Bank Guarantee is commonly used in commercial transactions where parties seek financial security for contractual obligations. Under Singapore law, this document provides a structured mechanism for securing payments or performance, requiring specific conditions to be met before any claim can be made. The guarantee typically includes detailed terms about the conditions for payment, validity period, and claim procedures, ensuring compliance with Singapore's Banking Act and MAS guidelines. This instrument is particularly valuable in international trade, construction projects, and large commercial transactions where parties need robust financial security.

1. Parties: Details of the Bank (Guarantor), Principal (Applicant), and Beneficiary

2. Background: Context of the underlying transaction necessitating the guarantee

3. Definitions: Key terms used in the guarantee document

4. Guarantee Amount: Specific sum guaranteed by the bank

5. Conditions for Demand: Specific conditions that must be met for the guarantee to be called

6. Expiry Date: Validity period of the guarantee

7. Payment Terms: Process and timeline for payment upon valid demand