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The letter of bank guarantee is a commitment in writing undertaken by a bank (guarantor bank = Issuing Bank) in favor of a person (the beneficiary of the bank guarantee), to pay said person an amount of money specified in the bank guarantee, in case another person (the initiator of the bank guarantee), on behalf of whom the bank guarantee is issued.
If the concerned person fails to serve the Organization for the minimum period of 2 years, the organization will be at liberty to invoke the bank guarantee and realize the amount from the issuing bank.
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