Bank Guarantee is a document issued by the Bank whereby the Bank undertakes to pay an agreed sum to the Beneficiary in the event that the Customer fails to honour the obligations in accordance with the terms and conditions of the Guarantee/Agreement/Contract (made under concept Kafalah Dhamanah)
The issuance of BG-i is subject to Malaysian Law of Contract. For foreign BG-i, it is subject to ISP 98, UCP 600 and URDG 758 whichever is applicable.
There are several types of guarantees issued by the bank depending on the needs of the customers.
The common ones are listed below:
The documents required for issuing Bank Guarantee are: