Kaagazaat

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Security Deposit Bank Guarantee Format

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  1. The bank and the guarantee
  2. The lessor, the lessee and the lease
  3. Amount, expiry and claims
  4. Signing

Step 1 of 4

The bank and the guarantee

For example: Chandigarh

A calendar date — the day, the month and the year. Dates in a document like this are read against one another, so a date typed here can change what another date is allowed to be.

For example: 2026-10-12

For example: State Bank of India

Address of the issuing branchNeeded

For example: BG/CHD/2026/0412

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BANK GUARANTEE FOR SECURITY DEPOSIT

Bank Guarantee No. __________
Date: __________
Place: __________

WHEREAS

NOW THEREFORE __________, acting through its branch at __________ (the "Bank"), gives this guarantee on the following terms.

  1. 1. THE GUARANTEE

1.2 A demand may be made once or several times, and for the whole or part of the Guaranteed Amount. Each amount paid reduces the Guaranteed Amount by that sum.

  1. 2. PAYMENT ON DEMAND

2.2 The Bank shall not delay or refuse payment because the Lessee disputes the Lessor's claim, has started or threatens any proceeding, or has asked the Bank not to pay. Any dispute between the Lessor and the Lessee is for them to settle between themselves and does not affect the Bank's duty to pay.

2.3 The Lessor need not first proceed against the Lessee, or against any other security or deposit it holds, before making a demand on the Bank.

  1. 3. VALIDITY AND CLAIM PERIOD

3.3 The Lessee must have this guarantee extended or replaced at least thirty days before the Expiry Date for as long as the Lease continues. If it has not been, the Lessor may, before the Expiry Date, demand the whole of the Guaranteed Amount, and the Bank shall pay it under clause 2 to be held by the Lessor as a cash security deposit under the Lease.

  1. 4. THE BANK'S DUTY IS INDEPENDENT OF THE LEASE

4.1 The Bank's duty under this guarantee is not discharged or reduced by any change to the Lease, any extra time or indulgence the Lessor gives the Lessee, any release of other security, or any change in the constitution, insolvency or winding up of the Lessee. The Bank waives any right to be told of, or to agree to, any of these.

4.2 The Bank's rights against the Lessee, including under any counter-indemnity the Lessee has given it, are between them alone. The Bank shall not set off against the Lessor any claim it has against the Lessee, and shall not make payment under this guarantee conditional on the Lessee's consent.

  1. 5. TRANSFER, CHANGE AND RETURN

5.1 If the Lessor transfers the Premises, the benefit of this guarantee passes to the new owner on written notice to the Bank, and the new owner may then make a demand under it as the Lessor.

5.2 This guarantee may be changed, or its Expiry Date extended, only by a writing signed by the Bank and accepted by the Lessor.

5.3 The Lessor shall return the original of this guarantee to the Bank when the Lease has ended, the Premises have been handed back and all sums due under the Lease have been settled, or on the end of the Claim Period, whichever is earlier.

  1. 6. DEMANDS AND LAW

6.1 A demand under this guarantee shall be in writing, signed by the Lessor, and delivered by hand or by registered post to the Bank's branch at __________.

6.3 The signatory below confirms that he or she is authorised to sign this guarantee for the Bank.

The rest stays out of view until every answer is in.

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