Common use of SECURITY DEPOSIT / BANKER’S GUARANTEE Clause in Contracts

SECURITY DEPOSIT / BANKER’S GUARANTEE. 36.1 The Institution shall have the option to require the Contractor, for the due and faithful performance of the Agreement and the fulfilment of the Contractor’s obligations hereunder, to lodge with the Institution a Security Deposit in the form of an on-demand Banker’s Guarantee or such other forms of security (in such form as prescribed by the Institution) equivalent to ten percent (10%) of the Contract Price. 36.2 The Institution shall be entitled to utilise and make payments out of or deductions from the Security Deposit in accordance with the Agreement. 36.3 In the event that the Security Deposit provided for in Clause 36.1 is inadequate to fully indemnify or compensate the Institution for any loss, liability, cost, expenses or damage incurred or suffered by the Institution as aforesaid, the Contractor shall, forthwith on demand by or on behalf of the Institution, pay to the Institution all losses, liabilities, costs, expenses (including without limitation, legal fees on a solicitor and own client basis) and/or damages as may be incurred or suffered by the Institution to the extent to which the Security Deposit proves inadequate. 36.4 If, at any time, by virtue of the deduction by the Institution in accordance with Clause 36.2, the Security Deposit falls below the amount stipulated in Clause 36.1, the Contractor shall, forthwith on demand by or on behalf of the Institution, top up the Security Deposit by paying the amount of the shortfall or furnishing an on demand Banker’s Guarantee on terms acceptable and determined by to the Institution for the same. 36.5 The Security Deposit shall be refunded without interest to the Contractor with the remaining value after any payments and/or deductions as provided in Clause 36.2, after the Agreement has expired or has been terminated PROVIDED ALWAYS that the Contractor has performed the Agreement to the satisfaction of the Institution.

SECURITY DEPOSIT / BANKER’S GUARANTEE. 36.1 9.2.1 The Institution shall have the option to require the Contractor, for the due and faithful performance of the Agreement Contract and the fulfilment of the Contractor’s obligations hereunder, to lodge with the Institution a Security Deposit security deposit in the form of an on-on demand Banker’s Guarantee or such other forms of security (in Guarantee, such form as prescribed by to be determined at the Institution) ’s sole and absolute discretion, equivalent to ten percent (10%) of the Contract PricePrice (“Security Deposit”). 36.2 9.2.2 The Institution shall be entitled to utilise and make payments out of or deductions from the Security Deposit in accordance with the AgreementContract. 36.3 9.2.3 In the event that the Security Deposit provided for in Clause 36.1 9.2.1 is inadequate to fully indemnify or compensate the Institution for any loss, liability, cost, expenses or damage incurred or suffered by the Institution as aforesaid, the Contractor shall, forthwith on demand by or on behalf of the Institution, pay to the Institution all losses, liabilities, costs, expenses (including without limitation, legal fees on a solicitor and own client basis) and/or damages as may be incurred or suffered by the Institution to the extent to which the Security Deposit proves inadequate. 36.4 9.2.4 If, at any time, by virtue of the deduction by the Institution in accordance with Clause 36.29.2.2, the Security Deposit falls below the amount stipulated in Clause 36.19.2.1, the Contractor shall, forthwith on demand by or on behalf of the Institution, top up the Security Deposit by paying the amount of the shortfall or furnishing an on demand Banker’s Guarantee on terms acceptable and determined by to the Institution for the same. 36.5 9.2.5 The Security Deposit shall be refunded without interest to the Contractor with the remaining value after following any payments and/or deductions as provided in or deduction made pursuant to Clause 36.29.2.2, and upon the Contractor’s compliance with any other relevant clauses of this Contract, and after the Agreement has expired Contract expires or has been terminated PROVIDED ALWAYS that the Contractor has performed the Agreement to the satisfaction of the Institutionterminated.