Bank Guarantee Application Swedbank by alicejenny

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									GUARANTEE APPLICATION
Mark , where appropriate                     Riga,    /   /                Ref.

 PRINCIPAL                                                        BENEFICIARY

 Name                                                             Name
 Address                                                          Address


 Registration No.                                                 Registration No.
 WE REQUEST YOU TO ISSUE THE GUARANTEE                                                  BENEFICIARY’S BANK

      by letter

      electronically via Beneficiary’s bank                                             SWIFT code

      as Beneficiary bank’s guarantee under Swedbank AS counter guarantee

 EXPIRY DATE                            GUARANTEE AMOUNT (in figures and words) AND     GUARANTEE WORDING
                                        CURRENCY                                             Swedbank AS standard wording

                                                                                             submitted together with the Application

 GUARANTEE TYPE                                                 BRIEF DESCRIPTION OF THE TRANSACTION

      tender guarantee

      performance guarantee

      payment guarantee
                                                                SPECIAL CONDITIONS
      advance payment guarantee



 COLLATERAL FOR THE GUARANTEE                                   ADDITIONAL CONDITIONS
                                                                GUARANTEE SERVICING ACCOUNT NO.
      CASH COLLATERAL
                                                                LV__ __HABA__ __ __ __ __ __ __ __ __ __ __ __ __

      TERM DEPOSIT                                              Account holder:

                                                                    PRINCIPAL
             We hereby confirm that we agree to and shall be
        bound also by Annex No.1 to the Guarantee Application
        ‘Terms and Conditions for Guarantees Secured by Term
        Deposits’
                                                                GUARANTEE SERVICING ACCOUNT NO.
    OTHER COLLATERAL IN ACCORDANCE WITH                         LV__ __HABA__ __ __ __ __ __ __ __ __ __ __ __ __
 FRAMEWORK AGREEMENT NO.
                                                                Account holder:

                                                                    PRINCIPAL




 We request you to issue on our behalf and for our account      AUTHORISED SIGNATURE AND STAMP OF THE PRINCIPAL /
 bank guarantee in accordance with the present Application      OWNER OF THE ACCOUNT
 and URDG 758. This guarantee will be subject to the General
 Terms and Conditions of Guarantees set out overleaf, which
 we have read, agree to and will comply with.
 PERSON AUTHORISED BY THE PRINCIPAL TO COLLECT THE ORIGINAL GUARANTEE


 CONTACT PERSON                                PHONE                         FAX                         E-MAIL




 Received by: Swedbank AS ……………………………………………………......................................




                                                                                                                                 0432F, 4.0
                                                                                                                                 19.09.2011
GENERAL TERMS AND CONDITIONS OF GUARANTEES
1. Terms used in the present Terms and Conditions:
Account Holder                       the Customer or a third party, for whose obligations the Guarantee is issued or who is stated in the Application as the holder of
                                     the Guarantee Servicing Account and the Guarantee Payment Account
Application                          an application for guarantee signed by the Customer as the Principal
Bank                                 “Swedbank” AS, single Reg. No. 40003074764, registered office: Balasta dambis 1a, Riga, LV-1048
Cash Collateral Account              a special bank account to which Guarantee collateral – cash collateral – is transferred and in which the Guarantee collateral is
                                     kept
Customer                             an individual or a corporate entity or a union of such individuals or entities, which is indicated in the Application as the Principal
Guarantee                            a bank guarantee issued subject to instructions given by the Customer in the Application
Guarantee Agreement                  the agreement entered into by and between the Bank and the Customer on issuance of Guarantee subject to instructions given
                                     by the Customer in the Application.
Guarantee Servicing Account          the Customer’s current account with the Bank indicated in the Application as the guarantee servicing account, which the
                                     Customer authorizes the Bank to debit for fees (commissions, late penalties, and other payments) payable by the Customer to
                                     the Bank in connection with the Guarantee issued
Guarantee Payment Account            the Customer’s current account with the Bank indicated in the Application as the guarantee servicing account, which the
                                     Customer authorizes the Bank to debit for fees (commissions, late penalties, and other payments) payable by the Customer to
                                     the Bank in connection with the Guarantee issued. In case no Guarantee Payment Account is indicated in the Application, the
                                     Guarantee Servicing Account shall be deemed to be the Guarantee Payment Account
Payment Demand                       a demand by the Beneficiary to the Bank to pay the Beneficiary the Guarantee Amount or a part thereof.
2. The Customer must secure the Guarantee with collateral acceptable to the Bank:
- Where the Guarantee is secured by cash collateral, the Customer, by signing the Application, authorizes the Bank to debit the Guarantee Payment Account and
    to transfer funds to the extent of the Guarantee Amount to the Cash Collateral Account. In case the currency of funds in the Guarantee Payment Account differs
    from the currency of the Guarantee, the Bank shall have the right to perform exchange of currency at the Bank’s exchange rate in force on the day the
    Guarantee is issued. The amount of cash collateral in the Guarantee Payment Account must be the same as the amount of the Guarantee. In case funds in the
    Guarantee Payment Account fall short of the Guarantee collateral, the Guarantee will not be issued;
- where the Guarantee is secured by term deposit, the Customer, by signing the Application, authorizes the Bank to debit the Guarantee Payment Account and to
    set up a term deposit. In case funds in the Guarantee Payment Account are considered by the Bank to fall short of the Guarantee collateral, the Guarantee will
    not be issued. If considered necessary by the Bank, the Bank may ask the Customer to sign the Guarantee Agreement and the Deposit Agreement prior to
    issuing the Guarantee;
- Where the Guarantee is secured by time deposit, the Customer, prior to issuance of Guarantee, must enter into Guarantee Agreement and Deposit Agreement
    with the Bank;
- Where the Guarantee is secured by commercial pledge or other type of collateral acceptable to the Bank, the Customer, prior to issuance of Guarantee, must
    enter into Guarantee Agreement and collateral (commercial pledge, mortgage) or another agreement acceptable to the Bank, with the Bank.
Collateral is released on 8th (eighth) day after expiry date of the Guarantee.
3. The Guarantee obligations shall be assumed by the Bank itself (direct Guarantee) or by another bank (correspondent bank) upon request of the Bank (indirect
Guarantee).
4. In case of the indirect Guarantee, the Bank authorizes the correspondent bank to fully assume obligations to the extent it is lawful, until the expiry date of the
indirect Guarantee and to make any payment according to the indirect Guarantee. Obligations of the correspondent bank shall be deemed a separate guarantee
issued under laws of the respective country.
5. Where the Customer requests and the Bank issues a Guarantee, which is one of the following:
 - common / Community transit procedure guarantee;
 - comprehensive guarantee to State Revenue Service for incurred customs debt and value-added tax debt;
the Collateral established for securing the Bank’s claims against the Customer under the relevant Guarantee, shall be released not sooner than after 4 (four) years
from the Expiry Date specified in the Guarantee. The said release period shall be calculated on the basis of a year of 360 days.
Where the Customer requests and the Bank issues a Guarantee, which is a guarantee from credit institution for comprehensive excise duty collateral, the
Collateral established for securing the Bank’s claims against the Customer under the relevant Guarantee shall be released not sooner than after 6 (six) months
and 15 (fifteen) days from the Expiry Date specified in the Guarantee.
6. Where a Guarantee in standard wording is requested by the Customer in his Application, the Bank shall issue the Guarantee according to the standard
guarantee wording approved by the Bank. Where the Customer requests that the Guarantee be issued in the wording enclosed to the Application, the Bank may
refuse to issue the Guarantee in such wording.
7. If Customer requests issuance of the Guarantee covering a third party’s liabilities, this must be specified in the field “Special Conditions” on the Application, and
the Application must be signed by the Customer as well as by the third party or, alternatively, an application signed by such third party where it confirms that
agrees to issuance of such guarantee and to the terms of the Application must be enclosed with the Application.
8. The Bank will pay, or authorise the correspondent bank to pay, funds demanded under the Guarantee upon receipt of the first Payment Demand made by the
Beneficiary provided that provisions of the Guarantee have been complied with and the Guarantee is in full force and effect.
9. Upon receipt of Payment Demand, the Bank shall verify that documents furnished by the Beneficiary comply with terms and conditions of the Guarantee. The
Bank assumes no liability or responsibility whatsoever for the form, adequacy, accuracy, validity, falsification, legality or contents of any documents presented to
the Bank, or for any statements made in such documents, or for quantity, quality and existence of goods or services (if such are indicated in the documents
furnished). The Bank will bear no liability for performance of any agreements existing between the Principal and the Beneficiary, and such agreements will not be
binding on the Bank, notwithstanding the fact that such agreement has been referred to in the Guarantee.
10. By signing the Application, the Customer authorizes the Bank to satisfy Payment Demands presented to the latter, by debiting the Guarantee Payment
account, and to pay fees, if any, by debiting the Guarantee Servicing Account. Where there are Customer’s funds on the Cash Collateral Account, the Bank shall
use these funds to make the respective payments. The Bank shall make payments in the currency stated in the Guarantee, and the Bank shall have the right to
exchange the Customer’s funds as per exchange rate set by the Bank as at the day the Payment Demand is satisfied. In the event of lack of sufficient funds on
Guarantee Payment Account, Guarantee Servicing Account or lack of the Customer’s funds transferred to the Cash Collateral Account, in sufficient amount,
necessary for the Payment Demand amount and Bank’s fees, the Customer shall promptly pay the Bank the lacking amount unless otherwise stipulated in any
agreements made by the Bank and the Customer in connection with the Guarantee issued. Until and unless the Customer has paid the Bank the lacking amount,
such amount shall be recorded in the Bank’s accounting system as the Bank’s loan to the Customer.
11. The fees shall be calculated according to the price list for services of the Bank (the price list is available at the premises of the Bank during working hours of
the Bank and on the Bank’s website at www.swedbank.lv) and be deducted from the Guarantee Servicing Account. The Customer shall also be liable for covering
the correspondent bank fees, if any, as well as other expenses incurred by the Bank in connection with the Guarantee.
12. All of the financial resources of the Customer that are or will be in the Customer’s accounts with the Bank, including funds on the Cash Collateral Account, are
pledged in favour of the Bank as a financial pledge and serve as a security for all claims of the Bank against the Customer in connection with the Guarantee
issued. Should the Customer fail to ensure funds requisite for payment of fees on the Guarantee Payment Account or Guarantee Servicing Account in the due
time, and also in all other cases when a claim by the Bank against the Customer arises under the Guarantee, the Bank shall have the right to satisfy such claim by
enforcing the financial pledge id est the Bank shall have the right, without any prior notice to the Customer, to debit (transfer) the amount payable from any of the
Customer’s accounts with the Bank, including Cash Collateral Account, or funds otherwise due to the Bank; furthermore the Bank shall have the right to convert
these funds on behalf of the Customer without any prior notice to the latter according to the exchange rate set by the Bank as of the respective day.
13. The Bank shall bear no responsibility for any inaccuracies, errors, or delays occurring due to a failure of telecommunication, electronic data interchange
systems, post or courier post. Likewise, the Bank shall bear no responsibility for any inaccuracies or errors made by correspondent banks in the course of
performing instructions given by the Bank.
14. The Bank shall have the right, subject to the procedure and limited to the cases prescribed by the Bank of Latvia Regulation for the Register of Debtors, to
furnish information about the Customer to the Bank of Latvia (the Bank of Latvia Regulation for the Credit Register are available on the Bank of Latvia website at
www.bank.lv).
15. Relations between the Bank and the Customer shall be governed by the present Terms, the Application, the Guarantee Agreement (if signed), the Terms of
Guarantees Secured by Term Deposits (if signed), and the General Conditions of the Bank. The present Terms, the Application, the Guarantee Agreement (if
signed), Terms of Guarantees Secured by Term Deposits (if signed), as well as any other agreements existing between the Bank and the Customer in relation to
Guarantees issued by the Bank shall be subject to laws and regulations of the Republic of Latvia. The International Chamber of Commerce Publication No. 758,
ICC Uniform Rules for Demand Guarantee or No. 325, Uniform Rules for Contract Guarantees shall be applicable to Guarantees issued by the Bank only if
expressly stated so in the specific Guarantee. The guarantees issued by correspondent banks shall be subject to the local laws and regulations of the country
where such guarantee has been issued. In case if the Guarantee is issued in form of stand-by letter then it will be subject to the International Chamber of
Commerce Publication No.ISP98 International Standby Practices.
Annex 1 to
Guarantee Application dated          /     /         , Ref.

          TERMS AND CONDITIONS OF GUARANTEES SECURED BY TERM DEPOSIT
1. Unless stated otherwise herein, the terminology used in the present Terms and Conditions, the Application and the General
Terms and Conditions of Guarantees will carry the same meaning. Explanation of some terminology used in the terms:
  a. Term Deposit – the term deposit specified in clause 2 of the present Terms.
  b. Deposit Agreement – the contract between the Customer and the Bank concerning the terms applicable to the Term Deposit.
2. The Customer gives an irrevocable instruction to the Bank to debit the Guarantee Payment Account and set up a Term Deposit
on behalf of the Customer, in the amount specified in this clause and of a maturity specified in this clause, in accordance with the
Bank’s terms in force on the day of setting up the Term Deposit:
          amount of Term Deposit:(in figures and words):

            maturity (of expiry date) of Term Deposit:       (Term Deposit must continue in force at least 8 days after the Guarantee
expiry date).
3. By signing the present Terms and Conditions, the Customer assumes contractual obligations with the Bank and agrees to
perform the obligations set forth in the Application, the General Terms of Guarantees and the present Terms.
4. The present Terms form an integral part of the Application, are binding on the Customer and do not alter or replace the General
Terms and Conditions of Guarantees (unless expressly stated otherwise in the present Terms and Conditions).
5. If funds in the Guarantee Payment Account are not sufficient to pay the amount demanded by the Beneficiary (the Payment
Demand), then the Bank shall may debit the required amount of funds from any other account held by the Customer with the Bank,
including to terminate the Deposit Agreement without any prior notice thereof to the Customer and to apply the Term Deposit funds
towards satisfaction of the Payment Demand unless the Bank and the Customer have agreed in writing on other procedure for
satisfaction of the Payment Demand. The Bank may transfer any Term Deposit funds remaining after satisfaction of the Payment
Demand to the Cash Collateral Account and the funds there until the Guarantee Expiry Date, however, not exceeding the amount of
the Bank’s remaining obligations under the Guarantee.
6. Where funds in the Guarantee Payment Account or in any other of the Customer’s accounts with the Bank are in a currency
other than the Guarantee amount currency, then the Bank, by debiting the relevant account for satisfaction of the Payment Demand,
shall convert the currency at the Bank’s exchange rate in force on the day of satisfaction of the Payment Demand.
7. All payments made according to a Payment Demand shall accordingly reduce the Bank’s obligations under the Guarantee.
8. Where the currency of the Term Deposit differs from the currency of the Guarantee and if, due to exchange rate fluctuations, the
Guarantee amount exceeds the Term Deposit amount, then the Bank shall have the right to demand a relevant increase of the Term
Deposit by the Customer. In determining whether the Guarantee amount exceeds the Term Deposit, the Deposit Agreement amount
shall be translated into the currency of the Guarantee amount at the exchange rate of the Bank of Latvia then in force.
9. The Bank may, without any prior notice to the Customer, unilaterally terminate the Deposit Agreement and to transfer the Term
Deposit funds to the Cash Collateral Account in the following cases:
   - if, in case of any event referred to in clause 8 of the present Terms and Conditions, the Customer has failed to increased the
     Term Deposit to the amount required by the Bank within 14 days after dispatch of the notification by the Bank;
   - any sign of the Customer’s insolvency proceedings is detected or the insolvency proceedings application is filed with court;
   - the Customer is unduly behind on payment of any statutory duties and taxes for more than 45 (forty-five) days;
   - other claims are brought against the Customer or against the Term Deposit, or the value of the Term Deposit has decreased
     substantially;
   - the Deposit agreement becomes invalid or unenforceable, or their provisions are not being complied with;
   - the Customer’s business operations or any of its core activities are discontinued or terminated, which may render due
     performance of the Customer’s obligations to the Bank impossible;
   - the Bank, pursuant to any agreements existing between the Bank and the Customer, or any company of the Bank’s Group
     pursuant to agreements existing between the Customer and such Group company, or Swedbank AB (registered with the
     Swedish Companies Registry under No. 502017-7753) pursuant to any agreements existing between Swedbank AB and the
     Customer, or any company, in which Swedbank AB directly or indirectly holds shares, pursuant to any agreements existing
     between such company and the Customer, becomes entitled to withdraw from the respective agreement unilaterally and
     demand early performance thereof by the Customer;
   - the level of risk associated with the loan has increased substantially;
   - any event or a series of events occur which, in the reasonable opinion of the Bank, have a material adverse effect on the
     Customer’s business, assets, financial transactions or financial standing or the ability of the Customer to comply with its
     obligations to the Bank (including, without limitation, a material adverse change in business activities of the Customer as
     compared to the situation at the time of signing the present Terms and Conditions).
10. If the Bank exercises its rights under clause 9, the Bank shall notify the Customer thereof in writing. The Customer shall have a
duty, within 7 (seven) days of dispatch of the Bank’s notice, to transfer funds at the extent of the Guarantee Amount to the Cash
Collateral Account specified by the Bank and to repay all and any monies due to the Bank under the Guarantee Agreement.

PRINCIPAL (CUSTOMER)

Name

Address



Registration No.

SIGNATURE AND STAMP OF THE PRINCIPAL (CUSTOMER) ................................................................................

								
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