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Application For Issuance of Letter of Guarantee English V3 June 2021 - Editable-11
Application For Issuance of Letter of Guarantee English V3 June 2021 - Editable-11
To
Date: D D M M Y Y Y Y
Abu Dhabi Islamic Bank (“the Bank”)
Please issue on my/our account and at my/our responsibility, a Letter of Guarantee as detailed below:
Full name and address of Applicant Full name and address of Beneficiary
Issuance through a Correspondent Bank Yes No If yes, counter guarantee indirect guarantee
PAPER GUARANTEE TO BE ISSUED IN UAE
00923002018120.
In connection with the issue of the aforesaid Letter of Guarantee, I / We hereby undertake and declare as under:
1. I/We hereby agree and undertake to indemnify you and keep you indemnified against any or all consequences whatsoever, direct or indirect resulting from of the issuance
of the above mentioned Letter of Guarantee. I/We also indemnify you against all legal costs or other expenses that you may incur as a result of the issuance of this Letter
of Guarantee or any extension thereof with out the need for official notice or legal procedure. I/We undertake to reimburse you on demand any amount that you may have
to pay, pursuant to your obligation and undertaking, regardless of whether or not the party in whose favour such obligation was incurred or to whom such undertaking was
given by you is legally justified in making claim against you thereunder or not. I/We hereby authorize you to issue on my/our behalf and at my/our responsibility a letter of
guarantee in favor of the beneficiary as stated above.
2. It is expressly agreed that you will fulfill your obligation resulting from the issuance of the said Letter of Guarantee, especially as regards your paying, on first written
demand, any amounts claimed thereunder at any time and without any further advise and without any / prior reference to me/us, notwithstanding any objection whatsoev-
er from me/us or from any other person.
3. I/We hereby irrevocably authorize you to debit from my/our accounts any amounts you are obliged to pay under this letter of guarantee as fulfilment of your obligation
arising out of or in connection with the letter of guarantee including any amounts due to you or any person including the beneficiary of this Letter of Guarantee. In case
the funds are insufficient or not in clear and deductible funds , I/We shall be obliged, upon demand by you to fund our/my accounts in one calendar day (the “Demand”)
and in case of delay or failure to provide such amounts to you within such one calendar day, I/We hereby consent to and agree to donate, upon claim from Abu Dhabi Islamic
Bank, an amount to be calculated in accordance with the following formula: 1% per month (or part thereof) on the total due amount, to a charity or charities approved by
AILG/V3/June 2021
the Internal Sharia Supervisory Committee of the Bank and hereby authorize you to debit from any of my/our accounts such donation amount.You shall have the right to
deduct from the said donation amount your actual and direct associated costs and expenses (excluding cost of fund, opportunity cost and late payment penalty in any form)
with the collection of due amounts hereunder and the deduction of such collection costs shall be subject to Resolution Number 69/02/2020 dated 16/09/2020 issued by
the Higher Shari’ah Authority of the Central Bank of the United Arab Emirates (the “Authority”) in respect of the parameters and standards for deduction of collection costs
in Islamic financial institutions form funds collected based on the commitment to donate (the “Resolution”), as determined by and applied under the supervision of the
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on Current A/C no. OR Saving A/C no. in my name/in the name of towards margin for the
above Letter of Guarantee and to utilize the same against this Letter of Guarantee without any reference to me/us, I/We also agree to furnish any additional security or
increase the lien amount, on demand from you, however you consider it necessary.
I/We acknowledge that I/we had the right to select whether to pledge funds at our discretion in profit bearing and/or non-profit bearing accounts and we selected the
above-mentioned account (s) at our sole discretion. I/We further understand and acknowledge that:
(a) Under any non-profit bearing accounts held with the Bank, I/We shall not be eligible for profit but the account balance will be guaranteed by the Bank as per the relevant
agreement.
(b) Under any profit bearing accounts (investment accounts) held with the Bank, I/We shall be eligible for the generated profit (if any) as per the relevant agreement but the
balances held in profit bearing accounts and any profits including the profit shall be pledged in addition to the balance of such account (s) are subject to investment risks
as per the relevant account documentation signed by I/We/us with the Bank are subject to investment risks as per such relevant agreement signed by me/us with the Bank.
8. In the event that the cash margin/lien on A/C is insufficient to honour a claim under this Letter of Guarantee, the Bank can, at its sole discretion, exercise its right of set
off against any credit balance in any other account maintained either singly or jointly by me/us to cover the shortfall.
9. I/We unconditionally agree to abide by the terms and conditions set out in the Facilities Offer Letter, if it has already been subscribed to by me/us. Further, I/We understand
and agree that the said Letter of Guarantee will be issued by the Bank without any commitment or obligation on their part to extend facilities as these may be considered
at the Bank’s discretion, on merits of the request and securities offered by me/us in this regard.
10. In the event of the Bank deciding in its discretion, acting reasonably, to terminate the facilities and/or cancel this Letter of Guarantee, we agree and undertake to return
the original Letter of Guarantee for cancellation or provide 100% cash margin immediately holding the Bank harmless against any/all claims, costs and expenses.
11. I/We hereby authorize you to extend the Letter of Guarantee without any reference to us in case you receive, extend or pay request from Beneficiary before the present
expiry date of this Letter of Guarantee.
12. I/We hereby agree that the governing law of the Beneficiary’s country to be applicable in case you are requested to issue a Letter of Guarantee in favor of a Beneficiary
outside the UAE through your correspondent Bank/or as otherwise agreed to the contrary.
13. This undertaking and Indemnity shall be governed by and construed in accordance with the Federal laws of the United Arab Emirates as applied by Abu Dhabi courts and
the courts of Abu Dhabi shall have the exclusive jurisdiction over any claims or dispute arising out of or related to this Letter of Guarantee unless otherwise expressly stated
in this Letter of Guarantee.
14. The laws referred to in clauses 13 & 14 (“Governing Laws”) shall be applicable to the extent such laws do not conflict with the rules and principles of the Islamic Shari’a
as set out in the Shari’a Standards of the Accounting and Auditing Organisation of Islamic Financial Institutions including the rules and principles issued by the Authority
as interpreted and applied by the Bank’s Internal Shari’a Supervisory Committee (“Shari’a Law”). In case of conflict between the Governing Laws and Shari’a Law, Shari’a
law will prevail.
15. We hereby understand, acknowledge, agree and are fully aware that (i) this Letter of Guarantee will not extend to include any claims of any interest amount (usury - Riba)
and (ii) the Bank is not responsible or liable to settle any interest amount (usury- Riba) that may result from this Letter of Guarantee in favor of the Beneficiary. We further
release the Bank from any responsibility to settle any interest amount (usury- Riba).
Authorized Signature and stamp of applicant/company Authorized Signature and stamp of applicant/company
Note: In case of third party guarantees, additional Indemnity with signature of applicant & third parties also to be obtained.
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