A bank guarantee is an instrument of guarantee by a bank, wherein the bank undertakes obligation(s) on behalf of a party, that in the event the said party fails to honor its committed obligation, the bank will be fulfilling such obligation.
A bank guarantee is generally by one party to another in case of commercial contracts between them.
The concept of bank guarantee is slowly diminishing and it is mostly now used in transactions with government bodies.
The following is a template of board resolution with regard to bank guarantee. Modify it suitably as per your requirement.
SAMPLE
#. Authorisation for availing bank guarantee
“RESOLVED THAT the consent of the Board of Directors be and is hereby accorded for availing Bank Guarantee of Rs. ............................ (Rupees ............................ only) for ................... purpose from any of the bankers of the company.
RESOLVED FURTHER THAT (Name of the Officer), (Designation) and (Name of the Officer), (Designation) be and is hereby authorized to make, sign and execute, on behalf of the company, such deeds, agreements, undertakings and all other documents or papers as may be necessary including documents for creation of security, if any, to accept modifications to the same as may be required.
RESOLVED FURTHER THAT (Name of the Officer), (Designation) and (Name of the Officer), (Designation) be and is hereby authorized to do all such acts, deeds and things that may be necessary or incidental for availing of this bank guarantee and for creation of security in favour of the bank.
RESOLVED FURTHER THAT a copy of the foregoing resolution duly certified by the Managing Director or any two of the Directors of the company be forwarded to the banker.”
Comments
Post a Comment