Checklist for Advance Bank Guarantee

Name of Party
Contract no/Date
Bank Name
BG No
BGdate
BG Value
Valid upto
Claim Upto
Particulars

Sl. No.

1 Whether the BG is issued by the local Bank

2

If so whether the BG is issued in Stamp paper.

3 Stamp paper value is commensurate with the guaranteed

amount
4

Whether two officers of the Bank signed if the value exceeds

Rs.5,00,000/-(Changes from Bank to Bank)

5 Whether the BG is dated

6 Whether the date of the BG is later to the date of stamp paper
bought.
7

Whether the Bank seal has been affixed in all the pages.

8 Whether the Guarantee correctly indicates the Party on whose

behalf the same is given
9

10

Whether the BG mentions correctly the reference of the contract/

PO etc., (Applicable for foreign Bank/Branch as well.
Whether the BG specifies correctly their liability in conformity
to the order requirement viz., Advance, SD, Performance
Guarantee, etc.

11 Whether the validity period indicated in the BG is in accordance

with the order terms.
12
13

Whether the claim period has been indicated in the BG

Whether there is a clear gap of minimum x months between the
validity period and claim period

14 Whether there is a clause for not absolving the Bank for any
liquidation, winding up, etc., of the party on whose behalf the BG
is issued
15 Whether the power of the Bank official is indicated in the BG for
issuing such Guarantee
16 Whether the BG specifies about the irrevocability of the BG/ right
to subrogation.
17 Whether the definitions of all parties involved have been correctly
mentioned.
18

Whether the effective date of the BG in force is specified

19 Whether the liberty of HZL to alter the terms of the contract has
been specified.
20 Whether the jurisdiction of Udaipur courts is specified in case of
litigation/remedies.

Y/ N/ NA

21

Whether the succession /assignment of the BG is specified in

case of any change in the constitution of Bank/party.

22 Whether a final synopsis indicating the liability, validity period /

claim period is given
23 Whether confirmation from Banker is available for issue of such
BG
24

In case of BG issued through fax by foreign banker whether the

same is authenticated by his local Agency.

tee

Remark