Common use of Financial Guarantee Clause in Contracts

Financial Guarantee. 19.1. Prior to the issuance of the first invoice, if required by ENEL, the SUPPLIER must submit one or more on first demand financial guarantees in favour of ENEL (according to the model included in the appendix of this Contract subject to local legislation and enforced in the country affected by this Annex, granted by a local high-level Bank or a branch of a foreign bank domiciled there, which has been previously accepted by ENEL, for a minimum value equal 20% of the total Contract value (or any other value expressly indicated therein) to ensure the fulfilment of all the obligations derived from the Contract, including the applicable compensations or penalties attributable to it. In case that another date is established in the Contract, the guarantee or guarantees submitted by the SUPPLIER shall be available up to thirty (30) calendar days after the expiry of the Warranty Period or, if applicable, of the Final Acceptance and, consequently, they shall be returned upon written request by the SUPPLIER and once ENEL has made the relevant discounts and checks. In the case that financial guarantees due to expire on an earlier date are submitted, the SUPPLIER shall extend their validity to meet the required period, renewals shall be carried out with at least forty-five (45) calendar days in advance, otherwise, it will be understood as a contract breach in accordance with clause 16.3.1 m) of the General Part of these General Terms and Conditions of Contract. In the cases in which the SUPPLIER does not submit the guarantees in the required deadlines, and notwithstanding any other legal action that may be instituted, ENEL may opt to terminate the Contract or suspend their effects until the presentation of a guarantee approved by ENEL, as well as accept other equivalent guarantees offered by the SUPPLIER. In any case, ENEL shall be entitled pursuant to law to allocate all payments due to the SUPPLIER until the 10% of the total Contract value is reached as soon as the SUPPLIER fulfils its obligation of submitting the required guarantees.

Financial Guarantee. 19.1. Prior to the issuance of the first invoice, if required by ENEL, the SUPPLIER Contractor must submit one or more on first demand financial guarantees in favour of ENEL (according to the model included in the appendix of this Contract subject to local legislation and enforced in the country affected by this Annex, granted by a local high-level Bank or a branch of a foreign bank domiciled there, which has been previously accepted by ENEL, for a minimum value equal 20% of the total Contract value (or any other value expressly indicated therein) to ensure the fulfilment of all the obligations derived from the Contract, including the applicable compensations or penalties attributable to it. In case that another date is established in the Contract, the guarantee or guarantees submitted by the SUPPLIER Contractor shall be available up to thirty (30) calendar days after the expiry of the Warranty Period or, if applicable, of the Final Acceptance and, consequently, they shall be returned upon written request by the SUPPLIER Contractor and once ENEL has made the relevant discounts and checks. In the case that financial guarantees due to expire on an earlier date are submitted, the SUPPLIER Contractor shall extend their validity to meet the required period, renewals shall be carried out with at least forty-forty- five (45) calendar days in advance, otherwise, it will be understood as a contract breach in accordance with clause 16.3.1 m) of the General Part of these General Terms and Conditions of Contract. In the cases in which the SUPPLIER Contractor does not submit the guarantees in the required deadlines, and notwithstanding any other legal action that may be instituted, ENEL may opt to terminate the Contract or suspend their effects until the presentation of a guarantee approved by ENEL, as well as accept other equivalent guarantees offered by the SUPPLIERContractor. In any case, ENEL shall be entitled pursuant to law to allocate all payments due to the SUPPLIER Contractor until the 10% of the total Contract value is reached as soon as the SUPPLIER Contractor fulfils its obligation of submitting the required guarantees.