Bank Letter of Guarantee
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Bank Letter of Guarantee
If you wish to pay for your purchase by company check, you will need to present a bank letter of guarantee.
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The letter must be on official bank letterhead and signed by a bank representative.
IMPORTANT: THE BANK MUST STATE THAT THEY IRREVOCABLY GUARANTEE THE PAYMENT OF THE CHECK BEING PRESENTED. IT IS NOT SUFFICIENT FOR THE BANK TO STATE THE CREDIT LIMIT OR BALANCE OF THE INDIVIDUAL/COMPANY. -
The letter must state the name of the individual or company for whom the guarantee is being stated and if a check is used, it must have the same name printed on it.
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The letter should contain the account number on which the check or wire transfer is to be drawn and the check or wire transfer should match this same account number.
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The letter should state an ending date after which the letter of guarantee will expire (at least seven days from auction).
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The letter must contain a maximum amount for which the bank will guarantee. The check must not be written for more than is guaranteed by the bank.
SAMPLE BANK LETTER
Plant & Machinery, Inc.
1304 Langham Creek Drive
Suite 454
Houston, TX 77084
Dear Sirs
(BANK NAME) irrevocably guarantees payment in full to Plant & Machinery, Inc. by (BUSINESS NAME) drawn on account (NUMBER), up to the amount of $ (DOLLARS) to purchase items at your (AUCTION NAME). This letter of guarantee is valid until (Month, Date, Year).
Regards,
(BANK REPRESENTATIVE)
(TITLE)
(BANK NAME)
