APPLICATION FOR LETTER OF GUARANTEE
TO: Standard Chartered Bank
FROM: Name and Address : Ref:
*I / We hereby request you to *issue / renew /request your correspondent bank to *issue / renew on *my / our
behalf a Letter of Guarantee, details as follows, and *I / we agree to abide by the Terms and Conditions as set out
in this Document.
Beneficiary: Name and Address: Validity:
*Claim period /
claim expiry date:
Amounts (in figure and words) :
Format / Text : *Enclosed / Not available If renewal, no. of LG to be renewed :
Special instructions :
Please debit *my / our account No. with your charges and your correspondent bank’s
charges if any.
*I / We authorise you at any time, if you think fit, without reference to *me / us to debit *my / our account (whether
current or otherwise) to make a deposit / to earmark our current account to the extent of all such sum or sums of
monies which you are liable under this Letter of Guarantee whether before or after the beneficiary of the Letter of
Guarantee has made a claim on you for payment.
*Delete whichever is inapplicable
(Please see Pages 2 and 3) Authorised signatures & company’s stamp
For Bank Use
Margin Held : LG No : Offering : Y / N
Data Entry By : Released By : Signature Verified By :
TRADE-0105-200909C Page 1 of 3
TERMS AND CONDITIONS
FOR APPLICATION FOR LETTER OF GUARANTEE
1) In consideration of your agreeing at my/our request to issue or to request your correspondent bank to issue
and forward a letter of guarantee to the beneficiary, as applied for herein, I/we, inclusive of my/our successors
in title and assigns hereby agree and undertake to indemnify you, your successors and assigns and at all
times to keep you fully and completely indemnified from and against all liability and claims and demands,
actions and proceedings, losses and expenses including legal costs (on a solicitor client basis) and all other
liabilities of whatsoever nature, amount or description which may be made or taken or suffered by you in
relation to or arising out of the said letter of guarantee, any renewals or any amendments thereto,
modifications thereof and any letter or documents made supplemental thereto.
2) In the event that you are required to issue in favour of your correspondent bank a counter guarantee /
indemnity in consideration of their issuance of a letter of guarantee in favour of the Beneficiary, the obligation
to indemnify you as set out herein shall also extend to all liability and claims and demands, action and
proceedings, losses and expenses including legal costs on a solicitor client basis and any other liabilities of
whatsoever nature, amount or description which may be made, taken or suffered by you in relation to or
arising out of such counter guarantee indemnity as you may have issued.
3) I/We acknowledge and understand that where the said letter of guarantee is issued by you, your
correspondent bank may (depending on each case) be required to either issue its own guarantee in favour of
the beneficiary or add a confirmation to the said letter of guarantee of credit issued by you on such terms and
conditions as you and/or your correspondent bank may deem fit and I/We agree and confirm that my/our
liability under the aforesaid indemnity shall not be affected or prejudiced in any way by the issuance of such a
guarantee or the addition of such confirmation by your correspondent bank.
4) We agree that you or your correspondent bank may make payment under the said letter of guarantee of any
sum or sums of money without requiring or obtaining any evidence or proof that the amount claimed or
requested by the beneficiary (which expression shall include his successors and assigns) or the amount paid
by you or your correspondent bank is due and payable to the beneficiary and without any notice or reference
to or further authority from me/us notwithstanding that I/we may dispute the validity of such claim, request or
payment. I/We acknowledge that under the terms of the said letter of guarantee you or your correspondent
bank may at your or their discretion or you or your correspondent bank may be required to pay the
guaranteed amount to the beneficiary notwithstanding that the beneficiary has not demanded payment
5) In the event that the said letter of guarantee to be issued by you or your correspondent bank is subject to and
is to be governed by the laws of a jurisdiction other than the Republic of Singapore and should a demand be
subsequently made by the beneficiary under the said letter of guarantee, I/we agree and authorise you to
then, and at your own discretion, obtain an opinion from legal counsel on the validity and enforceability of the
said letter of guarantee, prior to your or your correspondent bank making payment in accordance with the
beneficiary’s demand. I/We further agree that I/we shall bear the entire cost of your obtaining such an
opinion and that I/we shall indemnify you for any loss or expense whatsoever suffered by you due to any
delay in the payment of the guaranteed sum to the beneficiary caused by your having to obtain such an
6) I/We also agree that I/we shall not at any time question or challenge the validity legality or otherwise of any
such payment by you or your correspondent bank or deny any liability hereunder on the ground that such
payment or any part thereof made by you or your correspondent bank was not due or payable by you under
the said letter of guarantee or on any ground whatsoever.
7) Any demand, notification or certificate given by you specifying the moneys due and payable under or in
connection with any of the provisions of this indemnity shall, in the absence of manifest error, be conclusive
and binding on me/us.
8) And I/we further agree that my/our liability aforesaid is irrevocable and shall remain in full force and effect until
the said letter of guarantee given by you is released or expired or returned to you for cancellation and your
liability thereunder is fully discharged to your satisfaction.
9) Without prejudice to the generality of my/our aforesaid indemnity, I/we hereby authorise you (1) to charge
me/us your commission on the guaranteed sum and further (2) at your discretion and without reference to
me/us to set off any money in your hands belonging to me/us or to debit against any account which I/we now
or may hereafter have with you whether in Singapore or abroad and whether in Singapore Dollars or a foreign
currency any sum or sums of money which you may pay in respect of the said letter of guarantee or counter
guarantee / indemnity given to your correspondent bank I/we further authorise you to effect any exchange of
TRADE-0105-200909C Page 2 of 3
currency in connection therewith and I/we agree to pay interest on any money so paid by you at your usual
overdraft rates or such rate as may be applicable to us (which shall be determined at your discretion) from the
date when payment is due until repayment thereof is received by you from me/us.
10) I/We undertake, at your request, to effect in your favour such security as you may require from time to time;
and execute, complete and deliver to you such documentation as you may require from time to time.
11) We irrevocably consent to the disclosure by you, your officers and agents, in any manner howsoever, of any
account information (including any personal data) relating to us including but not limited to details of our
facilities, any securities taken, transactions undertaken, our account balances and deposit with you to (i) your
head office, any of your representative offices, documents checking and processing centres, branch offices in
any jurisdiction, related corporations (as defined in the Singapore Companies Act Cap 50), (ii) any regulatory
or supervisory authority including fiscal authority in any jurisdiction, (iii) any potential assignee of yours or any
other participant in any of your rights and/or obligations in relation to our facilities, (iv) any guarantors, third
party pledgors or security providers and your agents and independent contractors, and (v) any insurers with
whom insurance cover is taken out in connection with this application.
12) For avoidance of doubt and subject to the proviso appearing below, it is the intention of the parties that any
terms, interests, rights, benefits, defences, exemptions or limitations in this Agreement shall not be
enforceable by a third party (save and except for a third party as defined below) pursuant to the Contracts
(Rights of Third Parties) Act of Singapore (“the Act”), provided always that nothing herein operates to prevent
or limit your right to assign, novate, otherwise confer any benefit or interest in favour of any other party, apart
from the Act. The terms, interests, rights and benefits referred to above shall include but are not confined to
any banking facilities, advances, loans, financing or any other form of financial accommodation that you
provide or may provide under this Agreement.
Provided always that it shall be the intention of the parties that all defences and limitations in this Agreement
shall be enforceable by all of your subsidiaries (whether wholly or partly owned), parents, branches, any other
bank within the Standard Chartered Bank Group, whether carrying on business in Singapore or not,
successors in title or assigns of the Bank, entities into or with which the Bank may merge or consolidate, any
entities formed as a result of acquisition, by or of the Bank as well as your employees, sub-contractors and
agents, all of whom or which shall be deemed as third parties for the purposes of the Contracts (Rights of
Third Parties) Act of Singapore. For the purposes of this Act, consent of any of these third parties is not
required for any variation, rescission or termination of this Agreement.
13) Where the text / format of the letter of guarantee is supplied by us, you are under no responsibility or liability
to us to ensure the accuracy, legality or completeness of the format / text.
14) The Agreement between you and us contained in or evidenced by the foregoing terms and conditions shall be
governed and construed in accordance with the laws of the Republic of Singapore and we agree to submit to
the non-exclusive jurisdiction of the courts of Singapore for any disputes arising out of or in connection with
TRADE-0105-200909C Page 3 of 3