Retention Guarantee

Retention guarantees are used when it has been agreed that the importer will pay the remaining part of a purchase amount – which the importer would normally have retained during the guarantee period – to the exporter before the amount falls due. A retention guarantee ensures that the exporter will pay back this amount if failing to meet their contractual obligations.

Below are two common examples of a retention guarantee.

To apply for a retention guarantee, please find an electronic application in Business Online/District to be completed and submitted.
  • Retention Guarantee - on demand

    Retention Guarantee - on demand

    Name and address of beneficiary


    Guarantee no.
    Amount
    Date of Expiry

    We are informed by our clients (name and address of applicant) that they have entered into a contract with you covering (description of goods/project) in accordance with (order/contract/offer etc.).

    We are furthermore informed that the balance due to (name of applicant) will be paid to them against a retention bond.

    In consideration hereof we hereby guarantee you irrevocably for the above maximum amount to secure that our clients fulfil their warranty obligations towards you.

    Our guarantee will come into force when we receive the said amount, under reference to this guarantee, for placement at the free disposal of (name of applicant).

    Your claim(s), if any, duly made and presented to us under the guarantee, will be honoured on your first demand also stating that (name of applicant) have not fulfilled their above obligations towards you.

    Any demand for payment or request for extension under this guarantee must be made via authenticated SWIFT message through your bank confirming that the signatures on your signed written demand are legally binding upon your company.

    Where we have received no such claim by (expiry date) at the latest, we stand released from our liability under this guarantee.

    We will reduce the guarantee maximum by any such amount, as we have had to pay in order to meet your claim(s) duly made and presented under the guarantee.

    When the guarantee expires, please return this document to us.
  • Retention Guarantee - conditional

    Retention Guarantee - conditional

    Name and address of beneficiary


    Guarantee no.
    Amount
    Date of Expiry

    We are informed by our clients (name and address of applicant) that they have entered into a contract with you covering (description of goods/project) in accordance with (order/contract/offer etc.).

    We are furthermore informed that the balance due to (name of applicant) will be paid to them against a retention bond.

    In consideration hereof we hereby guarantee you irrevocably for the above maximum amount to secure that our clients fulfil their warranty obligations towards you.

    Our guarantee will come into force when we receive the said amount, under reference to this guarantee, for placement at the free disposal of (name of applicant).

    If (name of applicant) object to our making payment under the guarantee, we will pay no sum of money before (name of applicant) and you are in agreement, or there is a judicial decision.

    Any demand for payment or request for extension under this guarantee must be made via authenticated SWIFT message through your bank confirming that the signatures on your signed written demand are legally binding upon your company.

    Where we have received no such claim by (expiry date) at the latest, we stand released from our liability under this guarantee.

    We will reduce the guarantee maximum by any such amount, as we have had to pay in order to meet your claim(s) duly made and presented under the guarantee.

    When the guarantee expires, please return this document to us.

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