Common use of Provision of a Bank Guarantee Clause in Contracts

Provision of a Bank Guarantee. (a) On the date of this Agreement and in any event prior to the issue of any Construction Certificate, the Developer must deliver to the Council a bank guarantee (“Bank Guarantee”), which must be: (i) in a form and from an institution approved by the Council; (ii) irrevocable and unconditional; (iii) with no expiry date; (iv) issued in favour of the Council; (v) for an amount prescribed by Council; (vi) drafted to cover all of the Developer’s obligations under this Agreement; and (vii) on the terms otherwise satisfactory to the Council. (b) The Developer acknowledges that the Council enters into this Agreement on the proviso of the Developer providing the Bank Guarantee as a security for the performance of all of the Developer’s obligations under this Agreement, including without limitation the delivery of the Development Contribution to the Council in accordance with this Agreement.

Provision of a Bank Guarantee. (a) On the date of Upon entering into this Agreement and in any event prior to the issue of any Construction CertificateCertificate for the Development, the Developer must deliver to the Council a bank guarantee (“Bank Guarantee”)Guarantee in the sum of $100,000.00, which must be: (i) in a form and from an institution approved by the Council; (ii) irrevocable and unconditional; (iii) with no expiry date; (iv) issued in favour of the Council; (v) for an amount prescribed by Council; (vi) drafted to cover all of the Developer’s obligations under this Agreement; and (vii) on the terms otherwise satisfactory to the Council. (b) The Developer acknowledges that the Council enters into this Agreement on the proviso of the Developer providing the Bank Guarantee as a security for the performance of all of the Developer’s obligations under this Agreement, including without limitation the delivery of the Development Contribution to the Council in accordance with this Agreement.