Common use of Performance Security and Security Deposit Clause in Contracts

Performance Security and Security Deposit. 13.1.1. The Licensee shall, for the performance of its obligations hereunder during the Lock-in Period, has provided to the Maha-Metro, the Performance Security (the “Performance Security”) amounting to Rs. (Rs.25,00,000/- or Amount equivalent to 1st Year of Annual License Fees as quoted by Bidder, whichever is higher for each xxxxx xxxxxxx). 13.1.2. The Performance Security shall be submitted in the form of Bank Guarantee valid for a period of 27 months from the date of license agreement, issued from any Scheduled Commercial Bank having branch in India. The Performance Security shall be payable at Nagpur. 13.1.3. The Security Deposit shall be (Rs.25,00,000/- or Amount equivalent to 1st Year of annual license fees, whichever is higher). The Security Deposit shall be retained for the period equivalent to “entire tenure of co-branding rights plus six months”. 13.1.4. The Security Deposit shall be submitted as minimum 25% of Annual License Fees in the form of Cash/Account payee demand draft/NEFT/RTGS and 75% in the form of Bank Guarantee. The Security Deposit shall be refunded after the end of “entire tenure of co-branding rights plus six months”. 13.1.5. The Interest Free Security Deposit shall be escalated by 5% on compounding basis after completion of every year. The escalated amount shall be paid in the form of deposit by way of demand draft/NEFT/RTGS in favour of Maharashtra Metro Rail Corporation Ltd.

Performance Security and Security Deposit. 13.1.1. The Licensee shall, for the performance of its obligations hereunder during the Lock-in Period, has provided to the Maha-Metro, the Performance Security (the “Performance Security”) amounting to Rs. (Rs.25,00,000/- Rs.15,00,000/- or Amount equivalent to 1st Year of Annual License Fees as quoted by Bidder, whichever is higher for each xxxxx xxxxxxx). 13.1.2. The Performance Security shall be submitted in the form of Bank Guarantee valid for a period of 27 months from the date of license agreement, issued from any Scheduled Commercial Bank having branch in India. The Performance Security shall be payable at Nagpur. 13.1.3. The Security Deposit shall be (Rs.25,00,000/- Rs.15,00,000/- or Amount equivalent to 1st Year of annual license fees, whichever is higher). The Security Deposit shall be retained for the period equivalent to “entire tenure of co-branding rights plus six months”. 13.1.4. The Security Deposit shall be submitted as minimum 25% of Annual License Fees in the form of Cash/Account payee demand draft/NEFT/RTGS and 75% in the form of Bank Guarantee. The Security Deposit shall be refunded after the end of “entire tenure of co-branding rights plus six months”. 13.1.5. The Interest Free Security Deposit shall be escalated by 5% on compounding basis after completion of every year. The escalated amount shall be paid in the form of deposit by way of demand draft/NEFT/RTGS in favour of Maharashtra Metro Rail Corporation Ltd.