Common use of Bank Guarantee Clause in Contracts

Bank Guarantee. 4.1 On or before 1 January 2000, the Company must provide to the State an unconditional guarantee or letter of credit issued by a bank or banks acceptable to the State's Nominated Representative and in a form approved by the State's Nominated Representative to pay to the State on demand up to $25 000 000. 4.2 The guarantee or letter of credit required under clause 4.1 is to be provided in substitution for the Bank Guarantee currently provided to the State under clause 18.1 of the Management Agreement, and will be the Bank Guarantee for the purposes of clause 18.2 of the Management Agreement. 4.3 A breach by the Company of clause 4.1 shall be taken to be a breach of the Management Agreement for the purposes of clause 25.2 of the Management Agreement.