Performance Security Requirements Sample Clauses
The Performance Security Requirements clause mandates that a party, typically the contractor or supplier, must provide a financial guarantee—such as a bond, letter of credit, or bank guarantee—to assure the other party of their commitment to fulfill contractual obligations. This security is usually submitted before work begins and remains in effect until the project is completed or certain milestones are met, ensuring that funds are available to cover losses if the contractor defaults or fails to perform. The core function of this clause is to protect the client from financial risk by ensuring there are resources available to remedy non-performance or breaches of contract.
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Performance Security Requirements. Such surety may be provided by one of the following forms and conditioned upon faithful performance and satisfactory completion of services by Contractor.
Performance Security Requirements. 13.3.1 Contractor shall furnish to County within ten (10) days after Contractor’s execution of this Agreement, and in all events prior to the commencement of the Term of this Agreement, an irrevocable Letter of Credit (LOC) for the County of Los Angeles in the amount of $200,000 (United States currency), and shall be drawn on an institution licensed to transact business in the State of California. Such LOC shall be in the form and substance satisfactory to County’s Risk Manager, or County’s Treasurer and Tax Collector, as applicable. Such LOC shall be maintained by County in full force and effect until released by County’s Risk Manager upon the County Project Director’s written determination that Contractor shall have fully performed all of its obligations under this Agreement as evidenced by Contractor’s receipt of Acceptance from County as defined in the Agreement, Paragraph 5.7. Any modification, extension or termination of this Agreement shall in no way release Contractor or any of its sureties from any of their obligations under such LOC. Such LOC shall contain a waiver of notice of any Change Notices, Change Orders and Amendments to this Agreement.
13.3.2 The LOC shall be irrevocable. The LOC shall be drawn on an institution that meets or exceeds the rating standards established by the County’s Treasurer and Tax Collector. If the institution receives more than one rating, the rating considered in the analysis will be the lower rating, if applicable. Questions regarding the current rating standards may be submitted to: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Los Angeles County Sheriff Contracts ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, Room 214 ▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇ The LOC shall be subject to the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600, and should be in accordance with the terms thereof. (Reference: ▇▇▇▇://▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ and California Commercial Code Sections 5101-5118.)
13.3.3 At its sole option, County may accept certificates of deposit, cash deposits, or United States government securities payable to County on demand, in lieu of the LOC to meet this provision. County shall have no responsibility to Contractor to pay any such deposit, and any loss by reason of the failure of any institution issuing such collateral shall be solely the responsibility of Contractor.
13.3.4 Prior to County’s request for payment under the LOC, County shall provide written notice to Contractor of ...
Performance Security Requirements. Prior to initiation of this Agreement, the ARTIST agrees that the final payment will be in the amount of $ and will be held until County’s written Acceptance of the Artwork in lieu of providing the COUNTY a surety bond, in a form substantially similar to Attachment E (to this Agreement), which guarantees performance of the contractual obligation to restore the Premises in the event of incomplete performance, and to repair defective work as required in Section 7.19 herein, in the amount of $ . The parties agree that the $ amount shall be subject to reduction, and the difference may be paid to ARTIST before the COUNTY'S Acceptance, upon COUNTY'S determination, in the exercise of its sole discretion, that the work performed is not defective, and the reasonable cost of restoring the Premises as contemplated herein is less than the $ withheld. Should the ARTIST choose to obtain a surety bond, the bond must be duly executed by a solvent surety company which is authorized by the State of California and satisfactory to the COUNTY. The bond shall be in an amount of not less than 100% of the contract price, and shall be signed by both the ARTIST and the Surety. This bond shall be maintained by the ARTIST in full force and effect during this Agreement and for a period of one year from the date of the COUNTY’s Acceptance. If the amount set forth above is less than the amount the COUNTY will retain prior to Acceptance, then the COUNTY may waive the requirement for the surety bond. Should the surety become insufficient, the ARTIST ▇▇▇▇ ▇▇▇▇▇ said bond with good and sufficient surety within ten (10) days after receiving notice from the COUNTY that the surety is insufficient. Should the surety be deemed unsatisfactory at any time by the COUNTY, notice will be given to the ARTIST to that effect, and the ARTIST will forthwith substitute a new surety satisfactory to the COUNTY. No further payment shall be deemed due or will be made under this Agreement until bond and new surety is accepted by the COUNTY.
Performance Security Requirements. (a) Each Performance Security:
(i) must be issued by a surety or an insurance company that is authorized to issue bonds in the State and is rated in the top 2 categories by 2 of the 3 Rating Agencies or at least A-: VIII or better according to A.M. Best’s Financial Strength Rating and Financial Size Category; and
(ii) will name MDOT a permitted assignee or transferee beneficiary (as applicable), with rights to draw upon or exercise other remedies thereunder if MDOT succeeds to the position of Project Company.
(b) Project Company agrees that it may not seek an injunction to restrain MDOT from calling upon any Performance Security.
(c) Unless otherwise specified in this Agreement, a draw on the Performance Security or exercise of any rights thereunder will not be conditioned on prior resort to any other security of, or provided for the benefit of, Project Company.
(d) If MDOT receives proceeds of a draw on the Performance Security in excess of the relevant obligation, MDOT will promptly refund the excess to Project Company (or to its designee) after all relevant obligations are satisfied in full.
(e) Project Company will obtain and furnish, or cause to be obtained and furnished, all Performance Security (including replacements) at no additional cost to MDOT aside from any cost included in the Financial Model, and will pay all charges imposed in connection with MDOT’s presentment of sight drafts and drawing against any Performance Security or replacements thereof.
Performance Security Requirements. 6.1 Project Co shall obtain or cause to be obtained and deliver or cause to be delivered to the City, original executed and sealed Bonds, as stipulated in Section 6.4
Performance Security Requirements. The Performance Security Requirements may be provided by one of the following and conditioned upon faithful performance and satisfactory completion of services by the Contractor.
8.25.5.1 Performance Bond: A faithful performance bond in the sum of not less than $500,000.00 payable to the County of Los Angeles and executed by a corporate surety licensed to transact business in the State of California; or
8.25.5.2 Certificate of Deposit (“CD”) or Letter of Credit (“LOC”): A CD or Irrevocable LOC payable to the County upon demand in an amount not less than $500,000.00. Such CD or LOC must comply with minimum criteria and standards established by the County and be maintained throughout the term of the Contract.