GUARANTEEapplication

Tick as appropriateRiga , Ref.

PRINCIPAL / BENEFICIARY
Name / Name
Address / Address
Registration No. / Registration No.
WE REQUEST YOU TO ISSUE THE GUARANTEE
in the form of a letter
signed with the electronic signature and delivered via Swedbank AS Internet Banking to Principal Beneficiary
or
in SWIFT format through bank, SWIFT
in order for the foregoing bank to pass the Guarantee on to the Beneficiary without assuming obligations
in order for the foregoing bank to issue their own guarantee to the Beneficiary based on a counter-Guarantee by Swedbank
Language of the Guarantee: Latvian English
GUARANTEE EXPIRY DATE
(in case of a counter-Guarantee,15 days must be added to the requested expiry date of the Guarantee)
GUARANTEE AMOUNT (in figures and words) and CURRENCY
Guarantee wording
Swedbank AS standard wording:
By signing this Application, the Principal confirms that it is familiarized with Swedbank AS standard guarantee wording;
as enclosed with this Application
Guarantee Type (CONTENTS) / brief description of the transaction
tender guarantee;
performance guarantee;
payment guarantee;
advance payment guarantee;
warranty period guarantee
retention money guarantee / Contract / Procurement No., date
Contract / Procurement name
Description of goods or services
Other information:
Special Conditions
GUARANTEE COLLATERAL
cash collateral
TERM DEPOSIT
We confirm that we are also bound by the Annex to this Application “Terms and Conditions for Guarantees Secured by Term Deposits”
ACCOUNT TURNOVER
We confirm that we are also bound by the Annex to this Application “Terms and Conditions for Guarantees Secured by Account Turnover”
OTHER COLLATERAL IN ACCORDANCE WITH FRAMEWORK AGREEMENT NO..
Additional conditions
GUARANTEE SERVICING ACCOUNT NO. / LVHABA
GUARANTEE PAYMENT ACCOUNT NO. / LVHABA
We request issuance of Guarantee in accordance with this Application and URDG 758.The Guarantee will be in force in accordance with the General Terms and Conditions of Guarantees set out overleaf which we have read, agree to and undertake to comply with.
PRINCIPAL’S SIGNATURE / PERSON AUTHORISED BY THE PRINCIPAL TO COLLECT THE ORIGINAL GUARANTEE (if the guarantee is issued as a letter and is not signed by electronic signature)
______,
Signature, name printed, position / Forename, surname:
identity number:
GUARANTEE ISSUANCE PROCEDURE
standard issuance (within 3 business days)
urgent issuance (within 24 hours)
CONTACT PERSON
Forename, surname
______/ Telephone
______/ Fax
______/ E-mail
______
Accepted by Swedbank AS……………………………………………………......

0432F, 5.0

01.09.2015.

GENERAL TERMS AND CONDITIONS OF GUARANTEES

1. Terms and definitions:

Bank / Swedbank AS, unified reg. No. 40003074764, registered office: Balasta dambis 15, Riga, LV1048
Customer / a natural person or an legal entity, or an association of such persons or entities, stated in the Application as the Principal
Guarantee / a guarantee by the Bank issued on the terms set out in the Application under which the Bank assumes the obligation to be liable to the Beneficiary for performance of the Customer’s obligations
Guarantee
Servicing
Account / a current account with the Bank indicated in the Application as the Guarantee Servicing Account which the Customer authorizes to be debited by the Bank for payments (fees, late interest, and other payments) due in connection with the Guarantee issued
Guarantee
Payment
Account / a current account with the Bank indicated in the Application as the Guarantee Payment Account which the Customer authorizes to be used by the Bank for paying the Guarantee Amount (the Guarantee Servicing Account may also be indicated as the Guarantee Payment Account.If no Guarantee Payment Account is indicated in the Application, then the Guarantee Servicing Account will be treated as the Guarantee Payment Account)
Cash
Collateral Account / a special account with the Bank to which the Guarantee collateral –cashcollateral – is transferred and in which the Guarantee collateral is kept
Agreement / the agreement entered into by and between the Bank and the Customer on the basis of which the Bank issues one or several Guarantees
Payment
Demand / a demand by the Beneficiary to the Bank to pay the Beneficiary the Guarantee Amount or a part thereof
Application / an application for issuing a guarantee signed by the Customer as the Principal
International
Guarantee
Regulations / Publication No. 758 ICC Uniform Rules for Demand Guarantees by the International Chamber of Commerce

2. The Customer shall secure the Guarantee with a collateral, hereinafter – the “Collateral”, acceptable to the Bank.

2.1. If the Guarantee is secured by cash collateral, the Customer, by signing the Application, authorizes the Bank to debit the Guarantee Payment Account and to transfer funds equivalent to the Guarantee Amount to the Cash Collateral Account.If the currency of funds in the Guarantee Payment Account differs from the currency of the Guarantee, the Bank will have the right to perform currency exchange at the Bank’s exchange rate in force on the day the Guarantee is issued. ;

2.2. If the Guarantee is secured by term deposit, the Customer shall, prior to the Guarantee being issued, sign the Annex “Terms and Conditions for Guarantees Secured by Term Deposits” and the Customer authorizes the Bank to debit the Guarantee Payment Account and to set up a term deposit.If considered necessary by the Bank, the Bank and the Customer (and other provider of the respective collateral) shall sign the Agreement and the Deposit Agreement prior to the Guarantee being issued.

2.3. If the Guarantee is secured by funds in the Customer’s accounts (i.e. by account turnover), the Customer shall, prior to the Guarantee being issued, enter into the Agreement with the Bank or shall sign the Annex “Terms and Conditions for Guarantees Secured by Account Turnover”;

2.4. If the Guarantee is secured by commercial pledge, mortgage or other collateral acceptable to the Bank, the Customer (and other provider of the respective collateral) shall, prior to the Guarantee being issued, enter into the Agreement and a security agreement (for commercial pledge, mortgage or other collateral acceptable to the Bank) with the Bank.

2.5. The Bank shall release the Collateral on the 8th day after the Guarantee’s expiry date if the Bank does not receive a Payment Demand until that expiry date and the Customer has performed its obligations to the Bank under the issued Guarantee.

3. Depending on the terms indicated in the Application, the Bank shall issue a direct or indirect Guarantee (counter-Guarantee):

3.1. In case of issuing the direct Guarantee (unconfirmed Guarantee), the Bank assumes direct Guarantee obligations to the Beneficiary;

3.2. In case of issuing the indirect Guarantee (counter-Guarantee), the Bank assumes indirect Guarantee obligations to the Beneficiary and asks other credit institution to assume direct obligations to the Beneficiary. In issuing the indirect Guarantee, the Bank authorizes the respective credit institution to fully assume obligations under the Guarantee insofar as it is lawful until the expiry date of the indirect Guarantee and to make any payment arising from the indirect Guarantee.The obligations of the respective credit institution shall be treated as a separate guarantee issued under the laws of the respective country or the International Guarantee Regulations.

4. If the Customer asks in the Application that the Guarantee be issued in the standard wording, then the Bank will issue the Guarantee in the standard wording of guarantees adopted by the Bank.If the Customer asks in the Application that the Guarantee be issued in the wording enclosed with the Application, then the Bank may refuse to offer a Guarantee with such a text.The Customer shall have a duty to examine the text of the Guarantee upon receiving the Guarantee.

5. By accepting the Guarantee the Customer confirms that it has examined the text thereof and that the Guarantee is in conformity with its Application.If the Customer asks the Bank in the Application to issue the Guarantee by passing it on / sending it directly to the Beneficiary, then the Customer will assume all the risk associated with the contents of the Guarantee being in conformity with the Application.

6. If the Customer requests that the Guarantee be issued for the obligations of a third party, then this must be stated in the “Special Conditions” field on the Application, and the Application must be signed by the Customer as well as by such a third party or, alternatively, an application signed by such a third party where it confirms that it agrees to the issuance of such the Guarantee and to the terms of the Application must be enclosed with the Application.

7. The Bank shall issue the Guarantee within 3 business days in the event of standard issuance or within 24 hours (counting only business days of the Bank) in the event of urgent issuance after the Bank has accepted and approved the Application and the wording of the Guarantee (if not standard wording), the Customer has paid the Bank the required fees and Collateral satisfactory to the Bank has been provided.The Bank does not assume any obligation or duty to issue the Guarantee by accepting the Application and the Bank may refuse to act on the Application without any written explanation of the reasons behind the refusal to issue the Guarantee.

8. If the Bank issues the Guarantee in the form of a letter signed with the electronic signature, the Customer agrees that the Bank issues the Guarantee by making it available in the Principal’s and/or the Beneficiary’s (depending that stated in the Application) user account of the Internet Banking facility operated by Swedbank AS and the Guarantee will be available to all Internet Banking users of the respective addressee.

9. Upon receipt of a Payment Demand, the Bank shall verify that documents furnished by the Beneficiary comply with the terms and conditions of the Guarantee.The Bank assumes no liability or responsibility whatsoever for the form, adequacy, accuracy, validity, falsification, legality or contents of any documents presented to the Bank, or for any statements made in such documents, or for quantity, quality and existence of goods or services (if such are indicated in the documents furnished).The Bank will bear no liability for performance of any agreements existing between the Principal and the Beneficiary, and such agreements will not be binding on the Bank, notwithstanding the fact that such an agreement has been referred to in the Guarantee.

10. The Customer authorizes the Bank to satisfy Payment Demands presented to the Bank by debiting the Guarantee Payment Account and to pay fees, if any, by debiting the Guarantee Servicing Account.Where there are Customer’s funds in the Cash Collateral Account, the Bank shall make the respective payment out of these funds.The Bank shall make payments in the currency stated in the Guarantee and the Bank shall have the right to exchange the Customer’s funds at the Bank’s exchange rate in force on the day the Payment Demand is satisfied.If, on the day of satisfaction of the Payment Demand, funds in the Guarantee Payment Account or in the Guarantee Servicing Account or the Customer’s funds credited to the Cash Collateral Account are not sufficient for satisfying the Payment Demand and paying the Bank’s fees, then the Customer shall promptly pay the Bank the amount lacking unless otherwise stipulated in any existing agreements entered into between the Bank and the Customer in connection with the Guarantee issued.Until and unless the Customer has paid the Bank the amount lacking, such an amount will be recorded in the Bank’s accounting system as the Bank’s loan to the Customer, hereinafter – the “Debt”.The Customer shall pay interest to the Bank for using the amount of the Debt at the rate of 16% per annum of the amount of the Debt on the basis of a year of 360 days and the number of calendar days in a month.Repayment of the Debt and payment of other amounts due arising from the Application shall be made by the Principal within the time limit set by the Bank.

11. The Bank will pay, or authorise the respective credit institution to pay (in case of indirect Guarantee), funds demanded under the Guarantee upon receipt of the first Payment Demand by the Beneficiary provided that the conditions set out in the Guarantee are complied with and the Guarantee is in force.

12. The fees shall be calculated according to the Bank’s price list for services (the price list is available at the premises of the Bank during business hours of the Bank and on the Bank’s website at and shall be debited from the Guarantee Servicing Account.Fees set as a percentage per year will be calculated for each calendar day on the basis of a year of 360 days.The Customer shall also be liable for covering the fees of other credit institutions, if any, as well as other expenses incurred by the Bank in connection with the Guarantee.The Bank shall have the right to charge fees for the entire duration of the Guarantee in advance at its sole discretion upon issuance of the Guarantee.If the parties have entered into the Agreement and the Agreement sets forth the fees, then the fees will be calculated according to the respective Agreement.Fees payable once a calendar year shall be paid by the Customer on the 15th day of each calendar month unless the Agreement sets forth other fee payment procedure.

13. All of the financial means, present or future, in any account of the Customer with the Bank, as well as funds in the Cash Collateral Account, are pledged with the Bank as a financial pledge and secure for all and any claims the Bank may have against the Customer in connection with the issued Guarantee.If the Customer fails to provide funds necessary for respective payments in the Guarantee Payment Account or in the Guarantee Servicing Account in due time and also in all other cases where a claim by the Bank arises against the Customer in connection with the Guarantee, the Bank will have the right to satisfy such a claim by enforcing the financial pledge, namelythe Bank will have the right to debit (transfer), without any prior notice to the Customer thereof, the due amount from any account held by the Customer with the Bank, including from the Cash Collateral Account, or to withhold the same from funds otherwise due to the Bank; furthermore the Bank shall have the right to convert such funds on behalf of the Customer without any prior notice to the latter at the Bank’s exchange rate then in force.

14. For a delay in payment of any fee and for failure to pay the Debt amount within the time limit set by the Bank, the Customer shall be charged a contractual penalty at the rate of 0.16% per day of the amount past due for the period of delay.

15. The Bank may, subject to any applicable statutory requirements, exercise its sole discretion in determining the sequence for satisfying the Bank’s claims against the Customer.

16. The Bank shall bear no responsibility for any inaccuracies, errors, or delays arising due to a failure in telecommunication, electronic data transfer systems, mail or courier post.Neither will the Bank bear any responsibility for any inaccuracy or error by any correspondent banks in performance of instructions by the Bank.

17. The Bank may disclose information about the Customer to, and to receive information from, the Bank of Latvia when and as set forth in the Credit Register Regulations of the Bank of Latvia (the Bank of Latvia’s Credit Register Regulations are available on the website of the Bank of Latvia at

18. Relationship between the Bank and the Customer are governed by the present Terms and Conditions, the Application, the Guarantee Agreement (if signed), the Terms and Conditions of Guarantees Secured by Term Deposits / Account Turnover (if signed), and the General Conditions of the Bank.The present Terms and Conditions, the Application, the Agreement (if signed), the Terms and Conditions of Guarantees Secured by Term Deposits / Account Turnover (if signed), as well as any other agreements existing between the Bank and the Customer in connection with the Guarantee issued by the Bank shall be subject to the applicable laws and regulations in force in the Republic of Latvia.The International Guarantee Regulation shall apply to the Guarantee only where expressly stated so in the text of the Guarantee.Guarantees issued by other credit institutions shall be subject to the local laws and regulations of the country where the guarantee in question has been issued, unless stated otherwise in the text of the Guarantee.If the Guarantee is issued in the form of a standby letter of credit, it will be subject to the International Chamber of Commerce’s publication No. ISP98 International Standby Practices.

19. All and any disputes arising between the Customer and the Bank in connection with the Guarantee will be resolved at the Riga International Arbitration Court, in Riga, according to the rules and regulations of the arbitration court, before one arbitrator, in Latvian.

0432F, 5.0

01.09.2015.