Bank Guarantee ( Property Under Development)

This document is an indicative wording of a bank guarantee issued by Cyprus banks in connection to purchase of property under development, with payment of the full purchase price made in advance. The purpose of this guarantee is to provide security to the buyer in connection to performance of the obligation of the seller and it consitutes an immidiate remedy, namely any claim is made directly to the bank who is obligated pursuant to the terms of the guarantee to pay the buyer upon demand. As customary the total amount guaranteeing the obligations of the seller is reduced in accordance with stages of constructions. It is important to note that each bank will have their own acceptable wording for the issance of such guarantees and this specifi wording may not be acceptable to any one or more banks.