Bonds and Guarantees are written undertakings, either conditional or unconditional, issued by Standard Chartered Bank on customer‟s behalf to indemnify the beneficiary (the buyer of goods or services, the supplier or a Statutory Board) wherein the beneficiary requires a cash deposit or a bank Guarantee as support in the event of default against the terms of contract by the customer.

Bonds and Guarantees are like a Standby Letter of Credit and are not meant to be drawn against unless a demand has to be made by the beneficiary on the Issuing Bank along with a Statement of Default and any documents called for in the Guarantee are presented as evidence of such default.

Features

secure card safe guarantee

  • Utility Guarantee
  • Performance Bond
  • Bid / Tender Bond
  • Advance Payment Bond
  • Guarantee for Supply of Goods / Services
If the customer has a credit facility this will enable the customer to request the bank to issue a Bond / Guarantee against the Credit line. This will help manage cash flows more effectively.

  • Bonds and guarantees can only be issued where a specific credit limit has been established, reflecting the types of bonds/guarantees allowed
  • Standard Chartered Bank’s standard form, incorporating indemnity terms and conditions, must be used for each application for a Bond or Guarantee and signed by the customer‟s authorized signatory/signatories in accordance with the mandate signed with Standard Chartered Bank.
  • All formats should be provided by the customer, except where these are Statutory Boards’ Guarantees or Bonds. The wording / format of the required Bond or
  • Guarantee must be in accordance with Standard Chartered Bank’s legally approved standard format; otherwise it will be submitted for legal approval.
  • Maximum tenor must not exceed 12 months. Unless approved within the limit terms or specific approval is obtained
  • A copy of the customer‟s contract with the beneficiary should be presented if necessary
Guarantees Guarantees

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