Letter of Guarantee

					This letter sets forth the basic template for a bank to provide a guarantee for an
individual or entity, whereby the bank guarantees payment will be made to another
individual or entity, in certain specified instances. As drafted, the letter guarantees the
purchases made by a payor at an auction, but it can be customized to fit any situation
when a guarantee is necessary. The document sets forth the essential details of the
guarantee including the bank's name, the maximum amount to be guaranteed, and
contact information. This should be used by banking institutions and payors when a
guarantee of payment is necessary.
                                [Instruction: Insert bank letterhead here.]



___ [Instruction: Insert date.]



_____ [Instruction: Insert addressee name.]
_____ [Instruction: Insert address.]
_____ [Instruction: Insert city, state, zip code.]



                Re: Letter of Guarantee for ____ [Instruction: Insert payor name.]



Dear ____________________: [Instruction: Insert addressee name.]


This letter shall serve as notice that _____ [Instruction: Insert bank’s name.] (“Bank”)
unconditionally guarantees payment in U.S. funds, made payable to _____ [Instruction: Insert
payee’s name.] from _____ [Instruction: Insert payor’s name.] (“Payor”), which monies shall be
drawn on Payor’s account, maintained at Bank, in an amount up to and including, but not to exceed
$______________. [Instruction: Insert amount to be paid.]

This letter is valid for thirty days from the date hereof, and is being given for the purpose of
guaranteeing purchases made by or authorized to be made by Payor at the auction of _____ on
_____. [Instruction: Insert applicable auction name and date.] No stop payments will be issued
for any checks issued in accordance with the terms of this guarantee. This letter of guarantee
does not apply to any other purposes or purchases other than those specifically set forth herein,
and same will not be honored with respect to any other purposes or purchases.

[Optional: If the guarantee is not being given for auction purchase purposes, the above
paragraph may be revised to reflect the applicable reason for the guarantee.]

Please do not hesitate to contact us at ______ [Instruction: Insert bank contact information.]
for further information, or further proof of the above-referenced funds.

Sincerely,

[Instruction: Insert bank signature block.]




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Description: This letter sets forth the basic template for a bank to provide a guarantee for an individual or entity, whereby the bank guarantees payment will be made to another individual or entity, in certain specified instances. As drafted, the letter guarantees the purchases made by a payor at an auction, but it can be customized to fit any situation when a guarantee is necessary. The document sets forth the essential details of the guarantee including the bank's name, the maximum amount to be guaranteed, and contact information. This should be used by banking institutions and payors when a guarantee of payment is necessary.