Common use of Appropriation of Performance Security or Performance Guarantee Clause in Contracts

Appropriation of Performance Security or Performance Guarantee. 5.3.1 The Authority shall have the absolute and unqualified right to encash and draw down the amount of Performance Security and/or Performance Guarantee, as the case may be, in terms of this Article 5, including but not limited to: i. at any time if the Contractor has failed to observe any of the terms, conditions or provisions of this Contract or perform any of its obligations under this Contract.; or ii. upon occurrence of a Contractor’s event of default described in Clause 16.1.1; or iii. at any time if the Contractor has failed to mobilize the Contractor’s Personnel, machinery and requisite infrastructure for undertaking the Works in terms of this Contract to the satisfaction of Authority; or iv. on or after the date which is [30 (thirty) days] prior to the scheduled expiration of such Performance Security and/or Performance Guarantee if on such date the Authority is not yet obliged under this Contract to release such Performance Security and/or Performance Guarantee but the Contractor has not provided replacement Performance Security and/or Performance Guarantee conforming to the terms of this Contract. 5.3.2 Upon such encashment and appropriation from the Performance Security and/or Performance Guarantee, the Contractor shall, within 30 (thirty) days thereof, replenish, in case of partial appropriation, to its original level the Performance Security and/or Performance Guarantee, and in case of appropriation of the entire Performance Security and/or Performance Guarantee provide a fresh Performance Security and/or Performance Guarantee, as the case may be, and the Contractor shall, within the time so granted, replenish or furnish fresh Performance Security and/or Performance Guarantee as aforesaid failing which the Authority shall be entitled to terminate the Contract in accordance with Article 16 Contractor shall be entitled to an additional Cure Period of 30 (thirty) days for remedying the default mentioned in Clause 5.5.1, and in the event of the Contractor not curing its default within such Cure Period, the Authority shall be entitled to encash and appropriate such Performance Security and/or Performance Guarantee as Damages, and to terminate this Contract in accordance with Article 16.

Appropriation of Performance Security or Performance Guarantee. 5.3.1 5.6.1 The Authority shall have the absolute and unqualified right to encash and draw down the amount of Performance Security and/or Performance GuaranteeSecurity, as the case may be, in terms of this Article 5, including but not limited to: i. at any time if the Contractor has failed to observe any of the terms, conditions or provisions of this Contract or perform any of its obligations under this Contract.; or ii. upon occurrence of a Contractor’s event of default described in Clause 16.1.1; or iii. at any time if the Contractor has failed to mobilize the Contractor’s Personnel, machinery and requisite infrastructure for undertaking the Works in terms of this Contract to the satisfaction of Authority; or iv. on or after the date which is [30 (thirty) days] prior to the scheduled expiration of such Performance Security and/or Performance Guarantee if on such date the Authority is not yet obliged under this Contract to release such Performance Security and/or Performance Guarantee but the Contractor has not provided replacement Performance Security and/or Performance Guarantee conforming to the terms of this Contract. 5.3.2 5.6.2 Upon such encashment and appropriation from the Performance Security and/or Performance GuaranteeSecurity, the Contractor shall, within 30 (thirty) days thereof, replenish, in case of partial appropriation, to its original level the Performance Security and/or Performance GuaranteeSecurity, and in case of appropriation of the entire Performance Security and/or Performance Guarantee provide a fresh Performance Security and/or Performance GuaranteeSecurity, as the case may be, and the Contractor shall, within the time so granted, replenish or furnish fresh Performance Security and/or Performance Guarantee as aforesaid failing which the Authority shall be entitled to terminate the Contract in accordance with Article 16 16. Contractor shall be entitled to an additional Cure Period of 30 (thirty) days for remedying the default mentioned in Clause 5.5.15.7.1, and in the event of the Contractor not curing its default within such Cure Period, the Authority shall be entitled to encash and appropriate such Performance Security and/or Performance Guarantee as Damages, and to terminate this Contract in accordance with Article 16.