Common use of Bank Guarantee and Penalties Clause in Contracts

Bank Guarantee and Penalties. 3.5.1 Service Provider shall furnish performance security in the form of Bank Guarantee for an amount equivalent rupees of 3 % of the contract amount valid for a period of 2 years 6 months from a Scheduled Commercial Bank other than State Bank of India in a format provided/ approved by the Bank. 3.5.2 The Bank Guarantee is required to protect the interest of the Bank against the risk of non-performance of Service Provider in respect of successful implementation of the project and/or failing to perform / fulfil its commitments / obligations in respect of providing Services as mentioned in this Agreement; or breach of any terms and conditions of the Agreement, which may warrant invoking of Bank Guarantee. 3.5.3 If at any time during performance of the contract, Service Provider shall encounter unexpected conditions impeding timely completion of the Services under the Agreement and performance of the services, Service Provider shall promptly notify the Bank in writing of the fact of the delay, it’s likely duration and its cause(s). As soon as practicable, after receipt of Service Provider’s notice, the Bank shall evaluate the situation and may at its discretion extend Service Provider’s time for performance, in which case the extension shall be ratified by the Parties by amendment of the Agreement. 3.5.4 Performance of the obligations under the Agreement shall be made by Service Provider in accordance with the time schedule3 specified in this Agreement. 3.5.5 Service Provider shall be liable to pay penalty at the rate mentioned in Annexure-E in respect of any delay beyond the permitted period in providing the Services. 3.5.6 No penalty shall be levied in case of delay(s) in deliverables or performance of the contract for the reasons solely and directly attributable to the Bank. On reaching the maximum of penalties specified the Bank reserves the right to terminate the contract.

Bank Guarantee and Penalties. 3.5.1 Service Provider shall furnish performance security in the form of Bank Guarantee for an amount equivalent rupees of 3 % of the contract amount Rs. valid for a period of 2 years 6 months year(s) month(s) from a Scheduled Commercial Bank other than State Bank of India in a format provided/ approved by the Bank. 3.5.2 The Bank Guarantee is required to protect the interest of the Bank against the risk of non-performance of Service Provider in respect of successful implementation of the project and/or failing to perform / fulfil its commitments / obligations in respect of providing Services as mentioned in this Agreement; or breach of any terms and conditions of the Agreement, which may warrant invoking of Bank Guarantee. 3.5.3 If at any time during performance of the contract, Service Provider shall encounter unexpected conditions impeding timely completion of the Services under the Agreement and performance of the services, Service Provider shall promptly notify the Bank in writing of the fact of the delay, it’s likely duration and its cause(s). As soon as practicable, after receipt of Service Provider’s notice, the Bank shall evaluate the situation and may at its discretion extend Service Provider’s time for performance, in which case the extension shall be ratified by the Parties by amendment of the Agreement. 3.5.4 Performance of the obligations under the Agreement shall be made by Service Provider in accordance with the time schedule3 schedule9 specified in this Agreement. 3.5.5 Service Provider shall be liable to pay penalty at the rate mentioned in Annexure-E in respect of any delay beyond the permitted period in providing the Services. 9 Please ensure that the time scheduled is suitably incorporated in the Agreement. 3.5.6 No penalty shall be levied in case of delay(s) in deliverables or performance of the contract for the reasons solely and directly attributable to the Bank. On reaching the maximum of penalties specified the Bank reserves the right to terminate the contract.

Bank Guarantee and Penalties. 3.5.1 Service Provider shall furnish performance security in the form of Bank Guarantee for an amount equivalent rupees of 3 % of the contract amount valid for a period of 2 3 years 6 3 months from a Scheduled Commercial Bank other than State Bank of India in a format provided/ approved by the Bank. 3.5.2 The Bank Guarantee is required to protect the interest of the Bank against the risk of non-performance of Service Provider in respect of successful implementation of the project and/or failing to perform / fulfil its commitments / obligations in respect of providing Services as mentioned in this Agreement; or breach of any terms and conditions of the Agreement, which may warrant invoking of Bank Guarantee. 3.5.3 If at any time during performance of the contract, Service Provider shall encounter unexpected conditions impeding timely completion of the Services under the Agreement and performance of the services, Service Provider shall promptly notify the Bank in writing of the fact of the delay, it’s likely duration and its cause(s). As soon as practicable, after receipt of Service Provider’s notice, the Bank shall evaluate the situation and may at its discretion extend Service Provider’s time for performance, in which case the extension shall be ratified by the Parties by amendment of the Agreement. 3.5.4 Performance of the obligations under the Agreement shall be made by Service Provider in accordance with the time schedule3 schedule4 specified in this Agreement. 3.5.5 Service Provider shall be liable to pay penalty at the rate mentioned in Annexure-E in respect of any delay beyond the permitted period in providing the Services. 3.5.6 No penalty shall be levied in case of delay(s) in deliverables or performance of the contract for the reasons solely and directly attributable to the Bank. On reaching the maximum of penalties specified the Bank reserves the right to terminate the contract.

Bank Guarantee and Penalties. 3.5.1 3.3.1 Service Provider shall furnish performance security in the form of Bank Guarantee for an amount equivalent rupees of 3 % of the contract amount Rs. 10,00,000/- (Rs Ten Lakhs Only) valid for a period of 2 three (3) years 6 months from a Scheduled Commercial Bank other than State Bank of India in a format provided/ approved by the Bank. 3.5.2 3.3.2 The Bank Guarantee is required to protect the interest of the Bank against the risk of non-non- performance of Service Provider in respect of successful implementation of the project and/or failing to perform / fulfil its commitments / obligations in respect of providing Services as mentioned in this Agreement; or breach of any terms and conditions of the Agreement, which may warrant invoking of Bank Guarantee. 3.5.3 3.3.3 If at any time during performance of the contract, Service Provider shall encounter unexpected conditions impeding timely completion of the Services under the Agreement and performance of the services, Service Provider shall promptly notify the Bank in writing of the fact of the delay, it’s likely duration and its cause(s). As soon as practicable, after receipt of Service Provider’s notice, the Bank shall evaluate the situation and may at its discretion extend Service Provider’s time for performance, in which case the extension shall be ratified by the Parties by amendment of the Agreement. 3.5.4 3.3.4 Performance of the obligations under the Agreement shall be made by Service Provider in accordance with the time schedule3 schedule specified in this Agreement. 3.5.5 3.3.5 Service Provider shall be liable to pay penalty in case of delay in lifting / supply of FCNs to the branches across India at the rate mentioned in Annexure-B . 3.3.6 Service Provider shall be liable to pay penalty at the rate mentioned in Annexure-E B in respect of any delay in settlement beyond the permitted period in providing the Services. 3.5.6 3.3.7 No penalty shall be levied in case of delay(s) in deliverables or performance of the contract for the reasons solely and directly attributable to the Bank. On reaching the maximum of penalties specified the Bank reserves the right to terminate the contract.

Bank Guarantee and Penalties. 3.5.1 Service Provider shall furnish performance security in the form of Bank Guarantee for an amount equivalent rupees of 3 % of the contract amount Rs. valid for a period of 2 years 6 months year(s) month(s) from a Scheduled Commercial Bank other than State Bank of India in a format provided/ approved by the Bank. 3.5.2 The Bank Guarantee is required to protect the interest of the Bank against the risk of non-performance of Service Provider in respect of successful implementation of the project and/or failing to perform / fulfil its commitments / obligations in respect of providing Services as mentioned in this Agreement; or breach of any terms and conditions of the Agreement, which may warrant invoking of Bank Guarantee. 3.5.3 If at any time during performance of the contract, Service Provider shall encounter unexpected conditions impeding timely completion of the Services under the Agreement and performance of the services, Service Provider shall promptly notify the Bank in writing of the fact of the delay, it’s likely duration and its cause(s). As soon as practicable, after receipt of Service Provider’s notice, the Bank shall evaluate the situation and may at its discretion extend Service Provider’s time for performance, in which case the extension shall be ratified by the Parties by amendment of the Agreement. 3.5.4 Performance of the obligations under the Agreement shall be made by Service Provider in accordance with the time schedule3 schedule6 specified in this Agreement. 3.5.5 Service Provider shall be liable to pay penalty at the rate mentioned in Annexure-E C in respect of any delay beyond the permitted period in providing the Services. 3.5.6 No penalty shall be levied in case of delay(s) in deliverables or performance of the contract for the reasons solely and directly attributable to the Bank. On reaching the maximum of penalties specified the Bank reserves the right to terminate the contract.