Common use of Operating Bond Clause in Contracts

Operating Bond. It refers to the letter of guarantee issued by a Financial Institution to be presented by the Concession Holder to ensure compliance with all of its contractual obligations since the Commercial Start-Up, including the penalties of the Contract. In all cases, the Operating Bond may be comprised of more than one letter of guarantee, provided that they add up the total amount demanded for the corresponding guarantee. Such guarantees shall be joint and several, unconditional, irrevocable, with an express waiver of the benefit of excussion and division and automatically enforceable. The Operating Bond shall adhere to the format of Annex No. 4-A of the Contract.

Operating Bond. It refers to the letter of guarantee issued by a Financial Institution to be presented by the Concession Holder to ensure compliance with all of its contractual obligations since the Commercial Start-Up, including the penalties of the Contractagreement. In all cases, the Operating Bond may be comprised of more than one letter of guarantee, provided that they add up the total amount demanded for the corresponding guarantee. Such guarantees shall be joint and several, unconditional, irrevocable, with an express waiver of the benefit of excussion and division and automatically enforceable. The Operating Bond shall adhere to the format of Annex No. 4-A of the Contract.