Performance Security Deposit (PSD Clause Samples

Performance Security Deposit (PSD a) Performance security deposit (PSD) shall be solicited from all selected bidders except the departments of the State Government and undertakings, corporations, autonomous bodies, registered societies, co-operative societies which are owned or controlled or managed by the State Government and undertakings of the Central Government. However, a performance security declaration shall be taken from them. The State Government may relax the provision of performance security in particular procurement or any class of procurement. b) The amount of performance security shall be 5%of the amount of supply order in case of procurement of goods and services. In case of Small Scale Industries (SSI) of Rajasthan, it shall be 1% of the amount of quantity ordered for supply of goods and in case of sick industries, other than SSI, whose cases are pending before the Board of Industrial and Financial Reconstruction (BIFR), it shall be 2% of the amount of supply order. c) Performance security shall be furnished in any one of the following forms: - a. Bank Draft or Banker‟s Cheque of a scheduled bank; b. National Savings Certificates and any other script/ instrument under National Savings Schemes for promotion of small savings issued by a Post Office in Rajasthan, if the same can be pledged under the relevant rules. They shall be accepted at their surrender value at the time of bid and formally transferred in the name of procuring entity with the approval of Head Post Master; c. Bank guarantee/s of a scheduled bank, in case the amount of PSD is more than 10 lakhs. It shall be got verified from the issuing bank. Other conditions regarding RISL Final Rate Contract for Establishing Smart Classroom (After Pre-bid) bank guarantee shall be same as mentioned in the bidding document for bid security;

Performance Security Deposit (PSD. 5.1 The transporter shall submit “Performance Security Deposit (PSD) ” in favour of “Bharat Heavy Electricals Limited, Haridwar” within a period of thirty (30) days from award of contract / letter of intent or before start of work (whichever earlier). In case transporter fails to submit required security deposit with in specified time, BHEL may cancel the award of work and forfeit their EMD and get the work done through other source at the risk and cost of the defaulter transporter. 5.2 The rate of Performance Security Deposit will be as below w.r.t. business volume: 5.3 Performance Security Deposit shall be valid for the entire period of contract + further claim period of six (6) months (From the date of expiry of contract for successful execution of contract). PSD will be refunded only after the expiry of claim period subject to successful execution of contract. 5.4 The transporter shall submit the “Performance Security Deposit‟ in any of the following manner:- i. Bank guarantee from schedules bank/public financial institution as defined in companies Act. The bank guarantee should be in the format given at Annexure-N. ii. Pay Order, Demand Draft drawn in favour of M/s “Bharat Heavy Electricals Limited, Haridwar” should be valid for the period as aforesaid. iii. Local Cheque of scheduled banks, subject to realization. In case of bank guarantee, the same shall be caused to be submitted preferably through the issuing bank only and deposited with the Finance Deptt. of BHEL under receipt in duplicate with copy of receipt submitted to CDX. No interest will be payable on EMD and Performance Security Deposit.

Performance Security Deposit (PSD. (i) the Company shall deliver to BPDB the Performance Security Deposit before signing of PPA. (ii) If at any time prior to COD the PSD will expire within thirty (30) Days and the Company does not extend the period of effectiveness of the PSD for a period of not less than three (3) Months, BPDB shall be entitled immediately to encash the PSD in full. The PSD, among other things secures the Company’s obligation to achieve Financial Closing in accordance with the terms of this Agreement (iii) The Performance Security Deposit shall terminate upon the delivery to BPDB of the Operations Security Deposit pursuant to Section 8.6(c) and any undrawn portion of the Performance Security Deposit shall be released and returned to the Company by no later than five (5) Business Days following the delivery to BPDB of the Operations Security Deposit pursuant to Section 8.6(c). The Company shall maintain the Performance Security Deposit at the designated level at all times; provided that the Company may have fifteen (15) Days to replenish the Performance Security Deposit so as to return it to the required level, in the event that BPDB retains or collects funds from the Performance Security Deposit. (iv) The Performance Security Deposit will be encashed by BPDB to satisfy any obligation of the Company hereunder while the Performance Security Deposit is then in effect. The Performance Security shall be forfeited without any notice, demand, or other legal process if the Project Sponsor or the Company fails to achieve the Financial Closing on or before the Required Financial Closing Date or termination of the PPA and IA due to Company Event of Default.

Performance Security Deposit (PSD. 23.1) The successful tenderer shall deposit required amount as security deposit within twenty days from award of contract / letter of intent or before start of the work for satisfactory completion of work and shall not commence work under the contract before remitting security deposit except as directed by BHEL. 23.2) The total amount of Security Deposit will be 5% of the contract value. 23.3) EMD of the successful bidder can be converted and adjusted against the security deposit. 23.4) The balance amount to make up the required Security Deposit of 5% of the contract value may be accepted in the following forms: i) Local cheques of Scheduled Banks (subject to realization)/ Pay Order/ Demand Draft/ Electronic Fund Transfer in favour of BHEL ii) Bank Guarantee from Scheduled Banks/ Public Financial Institutions as defined in the Companies Act. The Bank Guarantee should be as per format given by BHEL. iii) Fixed Deposit Receipt issued by Scheduled Banks/ Public Financial Institutions as defined in the Companies Act (FDR should be in the name of the Contractor, a/c BHEL) iv) Securities available from Indian Post offices such as National Savings Certificates, Kisan ▇▇▇▇▇ ▇▇▇▇▇▇ etc. (held in the name of Contractor furnishing the security and duly endorsed/ hypothecated/ pledged, as applicable, in favour of BHEL) 23.5) Security Deposit shall be valid for the entire period of contract + further claim period of six months (From the date of expiry of contract for successful execution of contract). SD shall be refunded only after the expiry of claim period subject to successful execution of contract. 23.6) The security deposit shall not carry any interest. 23.7) Security deposit shall not be refunded to the contractor except in accordance with the terms of the contract. Security Deposit (SD) furnished by the bidder shall be forfeited/adjusted if: i) The bidder does not commence the work within the period as per LOI / Contract and in case of non- performance of the contract. ii) In case it comes to notice of BHEL at any stage during tendering process / contract period that any of the transporter, has given false / suppressed / forged / fake information. iii) For any deviation from and/or breach of the Tender conditions during execution of the contract. Note: BHEL reserve the right of forfeiture of security deposit in addition to other claims and penalties in the event of the contractor’s failure to fulfil any of the contractual obligations (including liquidation or b...

Performance Security Deposit (PSD. The Successful tenderer will be required to furnish a Performance Security Deposit (PSD) @ 3% of the value of the Contract or for Rs.12, 000/- which will be valid for a period of 60 days beyond the date of completion of all contractual obligations including warranty obligation within 7 days on receipt of Award Letter to ensure due Performance of the Contract. PSD shall be in the form of (i) Demand Draft in favour of Drawing and Disbursing Officer, Lok Sabha payable at New Delhi (ii) Deposit receipt from a Scheduled/Nationalized Bank in favour of Drawing and Disbursing Officer, Lok Sabha; or