Common use of Conditions of the Guarantee Clause in Contracts

Conditions of the Guarantee. (a) In the case of local financial institutions, the Guarantee must expressly state that the issuer waives the benefit of excussion contemplated in article 2.383 of the Civil Code. In the case of Guarantees issued by foreign financial institutions, it must express that it is on demand and irrevocable and the benefit of excussion or similar ones must be waived. (b) The performance bond (surety) will not expire due to the lack of payment of the premium or because of unilateral revocation thereof, and its text must state it. (c) If the insurance company or entity that grants the Guarantee establishes any percentage as deductible and makes it effective in the case of a loss, the amount to be cancelled will be assumed by the Sender. (d) The deductions made by the company issuing the Guarantee will be on the Sender’s charge so Cenit shall receive the total amount charged within the insured values.