Common use of SECURITY DEPOSIT Clause in Contracts

SECURITY DEPOSIT. 7.01 The successful tenderers shall, within fifteen days of receipt of offer letter / LOI deposit with the Company the Security Deposit for the due and faithful performance of the contract depending upon the category, as indicated below in which the rake point falls for which the tender is being submitted. Category Tentative Contract value Security Deposit 7.02 The security deposit furnished by the contractor shall carry no interest. 7.03 The security deposit shall remain at the entire disposal of the Company as the security for the satisfactory execution and completion of the work in accordance with the terms and conditions of the contract. The Company shall be at liberty to deduct and appropriate from the security deposit such losses, damages, penalties and dues as may be payable by the contractor under the contract and the amount by which the security deposit is reduced by such appropriation will be made good by further deduction from the contractor’s subsequent interim bills until the security deposit is restored to its full limit mentioned as in clause 7.04 If the contractor had previously held any contract and furnished security deposit with the Company, the same shall not be adjusted against this tender and a fresh security deposit will be required to be furnished. 7.05 On satisfactory performance and completion of the contract, in all respects, and upon return in good condition of any property belonging to the Company, which may have been issued to the contractor, the security deposit will be returned to the contractor on the presentation of NO DUE certificate from the State Manager of National Fertilizers Limited.