6Bond Clause Samples
The 'Bond' clause requires one party, typically the contractor or supplier, to provide a financial guarantee—often in the form of a surety bond or bank guarantee—to assure the other party of performance or payment under the contract. This bond may cover obligations such as completing the work, meeting quality standards, or paying subcontractors and suppliers. By requiring a bond, the clause protects the beneficiary from financial loss if the bonded party fails to fulfill their contractual duties, thereby allocating risk and enhancing trust between the parties.
6Bond. The Custodian shall at all times maintain a bond in such form and amount as is acceptable to the Fund, which shall be issued by a reputable fidelity insurance company authorized to do business in the place where such bond is issued, against larceny and embezzlement, covering each officer and employee of the Custodian who may, singly or jointly with others, have access to securities or funds of the Fund, either directly or through authority to receive and carry out any certificate instruction, order request, note or other instrument required or permitted by this Agreement. The Custodian agrees that it shall not cancel, terminate or modify such bond insofar as it adversely affects the Fund except after written notice given to the Fund not less than 10 days prior to the effective date of such cancellation, termination or modification. The Custodian shall, upon request, furnish to the Fund a copy of each such bond and each amendment thereto.