Bank Guarantees Sample Clauses
A Bank Guarantees clause outlines the requirement for one party to provide a financial guarantee, typically issued by a bank, to secure its obligations under the contract. In practice, this means that if the obligated party fails to fulfill its contractual duties, the beneficiary can claim payment from the bank up to a specified amount. This clause is commonly used in construction, supply, or service agreements to protect against non-performance or default, ensuring the beneficiary has a reliable source of compensation if the other party does not meet its commitments.
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Bank Guarantees. 21.1 Performance Bank Guarantee: Performance Bank Guarantee (PBG) valid for two years from any scheduled bank in prescribed format as per Annexure-IV has to be submitted before signing of LICENCE AGREEMENT for amount equal to Rs. 2 crores/ 20 Lakh for (category ‘A’ & ‘B’ service areas).
Bank Guarantees. 19.1 There is no requirement of performance Bank Guarantee (PBG) by BSNL, as long as it is a 100% Government owned company.
Bank Guarantees. By agreement of the Lender and the Borrowers and pursuant to such supplemental documentation as the Lender may request, the Borrowers may utilize the L/C Commitment in the form of bank guarantees issued by the Lender as an alternative to utilizing it for the issuance of Letters of Credit.
Bank Guarantees. The "DEVELOPER" has given following Bank Guarantees before execution of this agreement. S. No. Particulars Amount Validity Period 1.
Bank Guarantees. The Interim Revolving Facility shall also be available for utilisation by way of Bank Guarantees. The provisions of Schedule 9 (Bank Guarantees) shall form part of this Agreement and bind each Party.
Bank Guarantees. An autonomous bank guarantee in the form specified in Annex F (hereinafter: the “Bank Guarantee”).
Bank Guarantees. 22.1 The licensee shall submit a Financial Bank Guarantee (FBG) of Rs. one Crore, valid for two years, from any Scheduled Bank or Indian Public Financial Institution duly authorized to issue such Bank Guarantee, in the prescribed Performa annexed, prior to signing of the Licence Agreement. The financial bank guarantee shall be required to be revalidated if the commissioning of the Service is delayed. Subsequently, the amount of FBG shall be equivalent to the estimated sum payable annually towards the Licence fee and other dues not otherwise securitised. The amount of FBG shall be subject to periodic review by the Licensor.
22.2 Initially, the Bank Guarantees shall be valid for a period of two years and shall be renewed from time to time. The LICENSEE, on its own, shall extend the validity period of the Bank Guarantees for similar terms at least one month prior to date of its expiry without any demand or notice from the LICENSOR on year to year basis. Any failure to do so, shall amount to violation of the terms of the LICENCE and entitle the LICENSOR to encash the Bank Guarantees and to convert into a cash security without any reference to the LICENSEE at his risk and cost. No interest or compensation whatsoever shall be payable by the LICENSOR on such encashment.
22.3 Without prejudice to its rights of any other remedy, LICENSOR may encash Bank Guarantee (FBG) in case of any breach in terms & conditions of the LICENCE by the LICENSEE.
Bank Guarantees direction to pay
Bank Guarantees. (a) Termination of a bank guarantee
(b) Cancellation by you
Bank Guarantees. Where a Lease Guarantee is in the form of a Bank Guarantee:
(a) the Purchaser acknowledges that it is aware of the content of the Bank Guarantee;
(b) if the Lease requires a Tenant to do so, the Vendor will request the Tenant to produce, within a reasonable time after Completion, a replacement Bank Guarantee in favour of the Purchaser on similar terms to the Bank Guarantee held by the Vendor;
(c) where a Bank Guarantee may not lawfully be assigned and clause 10.2(b) does not apply:
(1) after Completion the Vendor holds its rights under the Bank Guarantee for the benefit of the Purchaser and must at the cost and risk of the Purchaser do whatever is reasonable to enable the Purchaser to enjoy that benefit; and
(2) the Vendor must deliver to the Purchaser on Completion a notice in the form of the notice in Schedule 7 to each bank which has issued such a Bank Guarantee asking it to redraw the Bank Guarantee in favour of the Purchaser. Any notice required under this clause 10.2(c)(2) must be prepared by the Purchaser and delivered to the Vendor for execution by the Vendor within a reasonable time prior to Completion. The Vendor does not warrant that the banks are obliged to or will comply with that request.