Security for Works. 5.1 Subject to the provisions of paragraph 5.5 and 5.6 of this Schedule the Owners covenant not to Commence the Development until the Owners have paid to the Council the Initial Security Sum Index Linked ("the Initial Security Sum Payment") for the sole purpose of securing the performance of the Works.
5.2 The Owners will pay the Council's reasonable costs incurred in setting up and administering the Security Account.
5.3 The Owners shall on each anniversary of the date of the Initial Security Sum Payment pay an additional sum to the Council which on the first anniversary of the Initial Security Sum Payment increases the Security Sum in accordance with any increases in the Index since the Initial Security Sum Payment was calculated (less any interest that has accrued on the Security Sum) and on subsequent anniversaries increases the Security Sum in accordance with any increases in the Index since the last date that the Security Sum was recalculated (less any interest that has accrued on the Security Sum during that period) or in the event that the Security Sum held by the Council has reduced pursuant to paragraphs 5.5 or 5.6 or 5.11 of this Schedule then such payment will be made based on the revised Security Sum being held by the Council at that time.
5.4 Save in relation to such part of the Security Sum which relates to item 17 in the Security Schedule relating to a contingency sum which shall be determined by the provisions in paragraph 5.8 to 5.12 of this Schedule, if the Council acting reasonably at any time believes that the sums secured by the Security Sum being held for the time being by the Council are insufficient to cover the level of security required to carry out the Works pursuant to this Deed having regard to the progress of the coaling operations and the Works then they shall inform the Owners in writing and the Owners shall pay to the Council such amount as the Council reasonably believes is required to increase the Security Sum to an amount that is sufficient to achieve the required level of security.
5.5 The Owners shall be entitled at any time following completion of those parts of the Works referred to at entries 1, 2, 3, 4, 5 and 6 of the Security Schedule to reduce the Security Sum by the sum set out at the relevant entries in the Security Schedule or such revised sum as has been agreed between the Owners and the Council acting reasonably in writing provided a Certificate of Interim Practical Completion countersigned by the Council (...
Security for Works. (a) The Developer must provide to the Council a Bank Guarantee to secure the completion of the Park Works in an amount that is 75% of the estimated cost of the Works.
(b) The Council may reject any Bank Guarantee that contains errors, or if it has received the Bank Guarantee, require at any time the Developer to obtain a replacement Bank Guarantee that rectifies any such errors or otherwise obtain rectification of the errors. The Developer must provide the replacement Bank Guarantee, or otherwise obtain rectification of the errors, within 5 Business Days of receiving the Council’s request.
(c) The Council may call on a Bank Guarantee or Bond provided under this clause if:
(i) the Developer is in material or substantial breach of this agreement in failing to deliver the Park Works within the timeframe required by the Contributions Table, or where a revised timeframe has been agreed by Council, within that revised timeframe and has failed to rectify the breach within a reasonable period of time after having been given reasonable notice (which must not be less than 21 Business Days) in writing to do so in accordance with clause 12.1 of this agreement; or
(ii) the Developer becomes Insolvent.
(d) Within 20 Business Days of each anniversary of a Bank Guarantee provided under clause 12.2(a), the Developer must provide Council with one or more replacement Bank Guarantees (Replacement Bank Guarantee) in an amount calculated in accordance with the following: Where: A is the amount of the Replacement Bank Guarantee, B is the amount of the Bank Guarantee to be replaced, C is the CPI for the quarter ending immediately before the date of the Bank Guarantee to be replaced, D is the CPI for the quarter ending immediately before the date of the Replacement Bank Guarantee, provided A is greater than B.
Security for Works
