To: All Licensed Banks (LBs) and Finance & Leasing Companies (FLCs)

Subject: Expired Performance Bonds/Guarantees Issued

Further to our Circular No. BM/810 dated March 08, 1997 and in supersession of the extant instructions on the subject, you are required to get the formats of the captioned documents revised to include therein the following as a footnote which is required to be discerned clearly.

Extract of Article 396 of Oman Law No. 55/1990.

“A bank shall be released in relation to the beneficiary if a demand from the beneficiary for payment does not reach it within the validity period of the letter of guarantee, unless it is expressly agreed prior to the coming to an end of such period that the same is to be renewed”.