Common use of Variation of Bond Clause in Contracts

Variation of Bond. 7.1 The parties acknowledge and agree that, pursuant to the Concession, the Minister may require a variation of the Bond Sum. 7.2 The Surety agrees that it is to continue to be surety and bound to the Minister for the amount of the Bond Sum as varied. 7.3 The parties acknowledge and agree pursuant to the Concession that if the Minister has had cause to make a claim under this Bond for payment of part or all of the Bond Sum or if, for any other reason, the Bond Sum appears likely to be insufficient to meet any claim under this Bond in whole or in part either during the term of the Concession or after its expiry as specified in clause 6.2(b) the Minister may require a variation of the Bond Sum.