Security for Performance and Payment Sample Clauses
The 'Security for Performance and Payment' clause requires one or both parties to provide financial guarantees, such as bonds, letters of credit, or other forms of security, to ensure fulfillment of contractual obligations and payment commitments. In practice, this might mean a contractor must obtain a performance bond to guarantee project completion, or a payment bond to assure subcontractors and suppliers will be paid. The core function of this clause is to protect the interests of the parties by reducing the risk of non-performance or non-payment, thereby providing assurance and financial recourse if obligations are not met.
Security for Performance and Payment. Sample Document Prior to execution of this Concession Lease, Concessionaire Tenant shall provide City a letter of credit in an amount equal to the first years MAG payable to City. Thereafter, Concessionaire Tenant shall at all times maintain such letter or other security in an amount equal to the amount of the Minimum Annual Guarantee applicable to each Contract Year. Said letter of credit or other security shall be conditioned to ensure the faithful and full performance by Concessionaire Tenant of all covenants, terms, and conditions of this Concession Lease and to stand as security for payment by Concessionaire Tenant of all valid claims by City against Concessionaire Tenant. Such guarantee will serve as a surety or security for the full and faithful performance of all terms, covenants, and conditions of this Concession Lease including but not limited to the rentals, fees, and charges to be paid, throughout the entire term of this Concession Lease. The form of all required letters of credit or other security and their surety company must be satisfactory to City Attorney's Office.
Security for Performance and Payment. Big Top shall obtain and deliver to the City, promptly upon the execution of a contract for the construction of the Facility Improvements, payment and performance bonds naming the City as beneficiary, each in the amount of the cost of all such improvements in excess of $4,200,000.00 (but not less than $500,000.00), conditioned on the faithful performance of Big Top’s obligations regarding the design of the Facility Improvements and the payment to every person, including every subcontractor, supplier, or service provider, of all claims for payment for labor, services, materials, plans, or specifications performed, furnished, or procured for the purpose of performing any work on the behalf of Big Top. No assignment, amendment or change of this Contract will release the sureties on the bonds.