A bank guarantee should clearly and correctly indicate the amount to be guaranteed. It is important that the owner and his lawyer carefully check the conditions of a bank guarantee before accepting the document, to ensure that problems are avoided when undesirable circumstances arise and that the lessor must benefit from the bank guarantee. The main characteristics that an applicant/tenant must understand using these instruments are (a) their irrevocability; and (b) independence. The first simply means that the act taken once cannot be revoked without the agreement of the three parties. This gives the beneficiary great certainty as to the existence of the payment obligation, but it should be taken into account that these instruments often have an expiry date. Beneficiaries shall insist, without exception, on an extension of the expiry date when it expires or may, if this is not foreseen, benefit from the full guarantee before the expiry date. A bank guarantee is a banking product (usually referred to as an “instrument”) intended to ensure payment to a person to whom the money can be paid later. The use of these instruments allows the obligated party to pay either to retain access to and use of part of its cash liquidity to maintain current commercial liquidity, or to use its cash liquidity in consultation with its bank. These instruments have a large number of different names for the same thing, including “demand guarantee”, “financial guarantee”, “akkreditiv”, “akkreditiv” or “banking bond”. The name of the instrument does not matter – its function is the important element. If tenants go to a bank to provide a guarantee, they should expect the bank to require some security in exchange for the guarantee: usually a mortgage on a property, a general security agreement or a cash deposit.
If the lessor uses the bank guarantee, the bank will take measures to enforce its security vis-à-vis the tenant. Banks also charge fees and/or margins to provide a bank guarantee. Many foreign banks have Australian banking licenses and are covered by the description of Australian commercial banks. No bank guarantee issued by the offer of a federal government. Jp morgan found in the case of universal publishers pty ltd. . . . .