Common use of FIRST DEMAND GUARANTEE Clause in Contracts

FIRST DEMAND GUARANTEE. The first demand guarantee shall be issued by a bank that has its registered office in a European Union country, provided that the latter has, for the entire duration of the Contract, a long-term credit rating equal to or higher than "A" issued by the rating agencies Standard & Poors or Fitch or "A2" issued by the rating agency Xxxxx’x. In the case of multi-annual subscriptions, where the first demand guarantee is issued either by a banking institution or by the Shipper’s parent company for a one-year period, the Shipper agrees that no less than thirty (30) days before the expiration of this one-year period, it will ask the banking institution or its parent company to renew its Guarantee, taking account of any possible adjustments provided for in the Contract. If within the thirty (30) days preceding the date of expiration of the Guarantee its renewal has not been transmitted to the Transmission System Operator, the latter may call in the Guarantee and retain the amount as security until the end of the Contract.

FIRST DEMAND GUARANTEE. The first demand guarantee shall be issued by a bank that has its registered office in a European Union country, provided that the latter has, for the entire duration of the Contract, a long-term credit rating equal to or higher than "A" issued by the rating agencies Standard & Poors or Fitch or "A2" issued by the rating agency Xxxxx’x. In the case of multi-annual subscriptions, where the first demand guarantee is issued either by a banking institution or by the Shipper’s parent company for a one-year period, the Shipper agrees that no less than thirty (30) days before the expiration of this one-year period, it will ask the banking institution or its parent company to renew its Guarantee, taking account of any possible adjustments provided for in the Contract. If within the thirty (30) days preceding the date of expiration of the Guarantee its renewal has not been transmitted to the Transmission System Operator, the latter may call in the Guarantee and retain the amount as security until the end of the Contract. The signature of Bank guarantee can be done thru a handwritten process or thru an electronic process in line with article 28.