Shipside Bond Sample Clauses

A Shipside Bond clause requires the provision of a financial guarantee or security at the point where goods are transferred from ship to shore. Typically, this bond is posted by the party receiving the goods to ensure payment of duties, taxes, or compliance with customs regulations before the cargo is released. For example, importers may need to provide a shipside bond to customs authorities to cover potential liabilities associated with the shipment. The core function of this clause is to protect the interests of customs or other regulatory bodies by ensuring that all legal and financial obligations related to the cargo are met before it leaves the port, thereby reducing the risk of non-payment or regulatory violations.
POPULAR SAMPLE Copied 1 times
Shipside Bond. The Bank may, from time to time, at the request of the Borrower, issue one or more Shipside Bond(s). In such event, each such Shipside Bond shall be considered an Obligation under this Agreement for purposes of Section 2.4 and shall reduce the amount available to the Borrower for the issuance of Letters of Credit by the amount of such Shipside Bonds. Nothing contained in this Agreement nor any past or future action on the part of the Bank shall be construed as creating any obligation on the part of the Bank to issue a Shipside Bond.
View SourceView Similar (2)

Related to Shipside Bond

  • Performance Bond and Payment Bond The Contractor shall furnish both a performance bond and a payment bond in the exact form set forth in Section 7, (Forms) of these General Conditions.

  • Performance Bond Unless otherwise prohibited by law, the Department may require the Contractor to furnish, without additional cost to the Department, a performance bond or irrevocable letter of credit or other form of security for the satisfactory performance of work hereunder. The Department shall determine the type and amount of security.

  • Bonds The Contractor shall furnish both a performance bond and a payment bond and shall pay the premiums thereon as a Cost of the Work. The Performance Bond shall guarantee the full performance of the Contract.

  • Performance Bonds Buyer shall have obtained, or caused to be obtained, in the name of Buyer, replacements for Seller’s and/or Seller’s Affiliates’ bonds, letters of credit and guarantees, and such other bonds, letters of credit and guarantees to the extent required by Section 7.05.

  • Replacement Bonds In the event that any Bond is not delivered due to any occurrence, act or event beyond the control of the Depositor and of the Trustee (such a Bond being herein called a "Special Bond"), the Depositor may so certify to the Trustee and instruct the Trustee to purchase Replacement Bonds which have been selected by the Depositor having a cost and an aggregate principal amount not in excess of the cost and aggregate principal amount of the Special Bonds not so delivered. To be eligible for inclusion in the Trust, the Replacement Bonds which the Depositor selects must: (i) for Trusts containing municipal bonds, yield current interest which is exempt from taxation for federal income tax purposes and, if the Trust is a State Trust, exempt from taxation under the personal income tax law of the particular state involved; (ii) have a fixed maturity or disposition date comparable to the bonds replaced; (iii) be purchased at a price that results in a yield to maturity and in a current return, in each case as of the execution and delivery of the applicable Reference Trust Agreement, which is approximately equivalent to the yield maturity and current return of the Special Bonds which failed to be delivered and for which the Replacement Bonds are substituted; (iv) be purchased within twenty days after delivery of notice of the failed contract to the Trustee or to the Depositor, whichever occurs first and (v) be of comparable credit quality to the Special Bond which failed to be delivered. Any Replacement Bonds received by the Trustee shall be deposited hereunder and shall be subject to the terms and conditions of this Indenture to the same extent as other Bonds deposited hereunder. No such deposit of Replacement Bonds shall be made after the earlier of (i) 90 days after the date of execution and delivery of the applicable Reference Trust Agreement or (ii) the first Distribution Date to occur after the date of execution and delivery of the applicable Reference Trust Agreement. (25) Article III is hereby amended by adding the following Section 3.19: