Bank guarantees serve as a crucial tool for businesses, providing assurance and mitigating financial risks in various transactions.
However, circumstances may arise where the need for a bank guarantee no longer exists, or the terms of the agreement have been fulfilled.
Sample Letters to Withdraw Bank Guarantee
In such cases, knowing how to effectively communicate your intention to withdraw a bank guarantee is essential to maintain professional relationships and ensure a smooth financial transition.
This article presents 15 sample letters to withdraw a bank guarantee, catering to different scenarios and requirements, empowering you to handle this process with confidence and clarity.
Letter 1: Withdrawing Bank Guarantee Due to Completion of Contract
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our contractual obligations for [project/transaction details].
I am pleased to inform you that we have successfully completed the contract and fulfilled all the required terms and conditions. As such, the bank guarantee is no longer necessary, and we kindly request its withdrawal.
Please find attached the original bank guarantee document and a copy of the completion certificate issued by the beneficiary, confirming the satisfactory conclusion of the contract.
We appreciate your prompt attention to this matter and request that you confirm the withdrawal of the bank guarantee at your earliest convenience.
Thank you for your assistance and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 2: Withdrawing Bank Guarantee Due to Mutual Agreement
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our performance in the [project/transaction details].
I am pleased to inform you that we have reached a mutual agreement with the beneficiary to terminate the contract and release the bank guarantee. Both parties have signed a termination agreement, acknowledging the consensual conclusion of the contract and the release of all obligations, including the bank guarantee.
Please find attached the original bank guarantee document and a copy of the signed termination agreement.
We kindly request your assistance in withdrawing the bank guarantee and confirming the completion of this process.
Thank you for your attention to this matter and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 3: Withdrawing Bank Guarantee Due to Expiration
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our obligations in the [project/transaction details].
I would like to bring to your attention that the bank guarantee has expired on [expiration date], and as per the terms of the guarantee, it is no longer valid.
Please find attached the original bank guarantee document for your records.
We kindly request your assistance in withdrawing the expired bank guarantee and confirming the completion of this process.
Thank you for your attention to this matter and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 4: Withdrawing Bank Guarantee Due to Change in Business Circumstances
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our performance in the [project/transaction details].
Due to unforeseen changes in our business circumstances, we are no longer able to proceed with the aforementioned project/transaction. We have formally notified the beneficiary of our decision to terminate the contract and have reached an agreement to release the bank guarantee.
Please find attached the original bank guarantee document and a copy of the termination agreement signed by both parties.
We appreciate your assistance in withdrawing the bank guarantee and confirming the completion of this process.
Thank you for your understanding and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 5: Withdrawing Bank Guarantee Due to Beneficiary’s Request
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our obligations in the [project/transaction details].
We have received a formal request from the beneficiary to release the bank guarantee, as they no longer require its security. The beneficiary has provided us with a written confirmation, stating their agreement to withdraw the bank guarantee.
Please find attached the original bank guarantee document and a copy of the beneficiary’s written confirmation.
We kindly request your assistance in withdrawing the bank guarantee and confirming the completion of this process.
Thank you for your attention to this matter and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 6: Withdrawing Bank Guarantee Due to Fulfillment of Obligations
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our performance in the [project/transaction details].
I am pleased to inform you that we have successfully fulfilled all our obligations under the contract, and the beneficiary has acknowledged our satisfactory performance. As such, the bank guarantee is no longer necessary, and we kindly request its withdrawal.
Please find attached the original bank guarantee document and a copy of the performance acknowledgment issued by the beneficiary.
We appreciate your prompt attention to this matter and request that you confirm the withdrawal of the bank guarantee at your earliest convenience.
Thank you for your assistance and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 7: Withdrawing Bank Guarantee Due to Replacement with Alternative Security
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our obligations in the [project/transaction details].
We have reached an agreement with the beneficiary to replace the existing bank guarantee with an alternative form of security. The beneficiary has accepted [alternative security details] as a suitable replacement and has provided their written consent to release the bank guarantee.
Please find attached the original bank guarantee document and a copy of the beneficiary’s written consent.
We kindly request your assistance in withdrawing the bank guarantee and confirming the completion of this process.
Thank you for your attention to this matter and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 8: Withdrawing Bank Guarantee Due to Termination of Contract
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our performance in the [project/transaction details].
Due to unforeseen circumstances, the contract related to this bank guarantee has been terminated by mutual agreement between our company and the beneficiary. Both parties have signed a termination agreement, releasing each other from all obligations, including the bank guarantee.
Please find attached the original bank guarantee document and a copy of the signed termination agreement.
We appreciate your assistance in withdrawing the bank guarantee and confirming the completion of this process.
Thank you for your understanding and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 9: Withdrawing Bank Guarantee Due to Reduction in Contract Value
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our performance in the [project/transaction details].
Due to a mutually agreed reduction in the contract value, the current bank guarantee amount is no longer required. We have reached an agreement with the beneficiary to release the existing bank guarantee and issue a new one with a reduced amount, reflecting the updated contract value.
Please find attached the original bank guarantee document and a copy of the agreement outlining the reduction in contract value.
We kindly request your assistance in withdrawing the current bank guarantee and issuing a new one with the reduced amount of [new guarantee amount].
Thank you for your attention to this matter and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 10: Withdrawing Bank Guarantee Due to Change in Beneficiary
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our obligations in the [project/transaction details].
We have been informed by the current beneficiary that they have transferred their rights and obligations under the contract to [new beneficiary name]. As a result, the existing bank guarantee is no longer required, and we have been requested to issue a new bank guarantee in favor of the new beneficiary.
Please find attached the original bank guarantee document and a copy of the notice of transfer from the current beneficiary to the new beneficiary.
We kindly request your assistance in withdrawing the current bank guarantee and issuing a new one in favor of [new beneficiary name] with the same terms and conditions.
Thank you for your attention to this matter and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 11: Withdrawing Bank Guarantee Due to Merger or Acquisition
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our obligations in the [project/transaction details].
Due to a recent merger/acquisition, our company has been acquired by [new company name]. As a result, all our contractual obligations, including the bank guarantee, have been transferred to the new entity.
Please find attached the original bank guarantee document and a copy of the merger/acquisition agreement.
We kindly request your assistance in withdrawing the current bank guarantee and issuing a new one in favor of [new company name] with the same terms and conditions.
Thank you for your attention to this matter and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 12: Withdrawing Bank Guarantee Due to Change in Project Scope
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our performance in the [project/transaction details].
Due to a mutually agreed change in the project scope, the current bank guarantee amount is no longer sufficient to cover the revised obligations. We have reached an agreement with the beneficiary to release the existing bank guarantee and issue a new one with an increased amount, reflecting the updated project scope.
Please find attached the original bank guarantee document and a copy of the agreement outlining the change in project scope.
We kindly request your assistance in withdrawing the current bank guarantee and issuing a new one with the increased amount of [new guarantee amount].
Thank you for your attention to this matter and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 13: Withdrawing Bank Guarantee Due to Cancellation of Project
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our obligations in the [project/transaction details].
Due to unforeseen circumstances, the project related to this bank guarantee has been canceled by mutual agreement between our company and the beneficiary. Both parties have signed a cancellation agreement, releasing each other from all obligations, including the bank guarantee.
Please find attached the original bank guarantee document and a copy of the signed cancellation agreement.
We appreciate your assistance in withdrawing the bank guarantee and confirming the completion of this process.
Thank you for your understanding and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 14: Withdrawing Bank Guarantee Due to Substitution with New Guarantee
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our obligations in the [project/transaction details].
We have reached an agreement with the beneficiary to substitute the existing bank guarantee with a new one, issued by [new bank name]. The beneficiary has provided their written consent to release the current bank guarantee upon receipt of the new one.
Please find attached the original bank guarantee document and a copy of the beneficiary’s written consent.
We kindly request your assistance in withdrawing the current bank guarantee, subject to the receipt of the new guarantee from [new bank name].
Thank you for your attention to this matter and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Letter 15: Withdrawing Bank Guarantee Due to Expiry of Underlying Contract
Subject: Withdrawal of Bank Guarantee – Guarantee Reference Number [XXXXXX]
Dear [Bank Manager],
I am writing to formally request the withdrawal of the bank guarantee, reference number [XXXXXX], issued by your bank on [date] in favor of [beneficiary name]. The purpose of this guarantee was to secure our obligations under the [project/transaction details] contract.
I would like to inform you that the underlying contract has expired on [expiry date], and all obligations have been fulfilled by both parties. As per the terms of the contract, the bank guarantee is no longer required and should be withdrawn.
Please find attached the original bank guarantee document and a copy of the expired contract.
We kindly request your assistance in withdrawing the bank guarantee and confirming the completion of this process.
Thank you for your attention to this matter and the services provided by your bank.
Sincerely,
[Your Name]
[Company Name]
Conclusion
Withdrawing a bank guarantee is a formal process that requires clear communication and adherence to the terms and conditions outlined in the guarantee agreement.
By using these 15 sample letters as a guide and adapting them to your specific circumstances, you can effectively convey your intentions to the bank and ensure a smooth withdrawal process.
When drafting your withdrawal letter, keep the following points in mind:
- Clearly state the reference number and details of the bank guarantee you wish to withdraw.
- Provide a valid reason for the withdrawal, such as completion of the underlying contract, mutual agreement, or expiration of the guarantee.
- Include any relevant supporting documents, such as the original bank guarantee, termination agreements, or written consent from the beneficiary.
- Use a professional and courteous tone throughout the letter, maintaining clear and concise language.
- Request confirmation of the withdrawal process and express your appreciation for the bank’s services.
- Keep a copy of the letter for your records and follow up with the bank if you do not receive a timely response.
By following these guidelines and maintaining effective communication with your bank, you can successfully withdraw a bank guarantee and protect your financial interests while maintaining strong business relationships.
