Legal Opinion on Bank Guarantee

Dated: ………………….

Mr. X

Assistant Vice President

Arab Bangladesh Bank Limited

Principal Branch

BCIB Bhaban

30-31, Dilkusha Commercial Area


Dear Sir,


We refer to your letter PB/CR/A/1450/2003 dated 06.06.2003 on the above subject.

We have been provided with the specimen of Bank Guarantee to be issued to Construction and Maintenance Management Unit (CMMU), Bogra Division, Bogra with a request to provide our opinion on the said as to whether the same protects the interest of the Bank.

We have revised the draft guarantee and the revised draft is attached herewith.

Should you require any further information please feel free to contact us.

Thanking you.

Yours faithfully,

For: The Lawyers & Jurists Country code+ Ph No.

Ph:0088-02-9571389; 0088-02-9513408,

0088-02-9564329, 0088-02-9564398

Direct cell with country code:

Guarantor: Arab Bangladesh Bank Limited

Principal: Brotherhood Enterprise Limited (the “Contractor”)

Beneficiary: Construction & Maintenance Management Unit, ___________________

The Executive Engineer

Construction & Maintenance Management Unit


Bogra Division


BANK GUARANTEE NO. _____________________dated ____________.

WHEREAS Brotherhood Enterprise Limited, 797 South Shahjahanpur, Dhaka-1217 (hereinafter called “the Contractor”) has entered into Contract No. MOHFW/CMMU/HPPP/THC/Bid-256/2002/430 dated 20.04.2003 (hereinafter called “the Contract”) with the Construction & Maintenance Management Unit of ____________________________, Bogra Division, Bogra represented through its Executive Engineer (hereinafter called “the Employer”) for execution of Upgradation of Kalai Upazila Health Complex at Joypurhat under HPPP, IDA Credit No. 3101-BD, (package No. W 1812-CMMU).

AND WHEREAS it has been stipulated in the said Contract that the Contractor shall furnish a Bank Guarantee by a recognized bank for the sum specified therein as security for the performance of the obligation of the Contractor in accordance with the Contract;

AND WHEREAS, we Arab Bangladesh Bank Limited, Principal Branch having our offices at BCIB Bhaban 30-31, Dilksuha Commercial Area, Dhaka 1000, Bangladesh (hereinafter called the Bank) have agreed to give such a Bank Guarantee;

Now, in pursuance of the said Contract between the Contractor and the Employer and in consideration of awarding the subject work under the Contract dated __________ by the Employer to the Contractor, we, Arab Bangladesh Bank Limited, do hereby irrevocably and unconditionally undertake to pay to you – the Employer the sum not exceeding Taka 14,38,500.00 (Taka Fourteen lac thirty eight thousand five hundred) only upon your first written demand without any reference to the Contractor in the event of default on the part of the Contractor in performance of its contractual obligation under the Contract dated _____________.

The demand made by you shall be conclusive proof of default on the part of the Contractor in performance of its contractual obligation under the Contract dated _____________ and shall also be conclusive proof of our obligation under this Guarantee.

The payment under this guarantee shall be made without failure and within ______ (______) days of making the demand. We hereby acknowledge and declare that our obligation under this guarantee shall be independent from the obligations of the Contractor under the Contract and you are at liberty to have recourse against us at your discretion without taking any recourse against the Contractor.

Any demand under this Guarantee must be made within the validity period as stipulated hereinafter. If the guarantee expires on a date which is an official holiday and/or we are closed on that date due to any reason, the validity shall stand extended to the first following day on which we are open.

This Guarantee shall remain valid for a period up to 28 days from the date of issuance of Certificate of Completion or till 04.12.2004, whichever is earlier. This Guarantee shall be extended for a further period upon your written request made at least 15 (fifteen) days before the expiry and we shall be bound to extend the validity of the guarantee for the period so required by you within the validity of this Guarantee without reference to the Contractor.



Signed in presence of:

For: The Lawyers & Jurists

146 ,Aligarh House ,5th floor ,Motijheel C/A, Dhaka -1000,Bangladesh