Calling on Bank Guarantee Clause Samples

The 'Calling on Bank Guarantee' clause defines the process and conditions under which a beneficiary can demand payment from a bank under a bank guarantee. Typically, this clause outlines the steps the beneficiary must follow, such as submitting a written demand and providing any required documentation to the bank, in order to trigger payment. For example, if a contractor fails to fulfill their obligations under a contract, the project owner may call on the bank guarantee to recover losses. The core function of this clause is to provide a clear and enforceable mechanism for securing payment in the event of non-performance or default, thereby allocating risk and ensuring financial security for the beneficiary.
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Calling on Bank Guarantee. (a) The Council may call on the Bank Guarantee in the event that the Developer: (i) fails to make a payment of any part of the Monetary Contributions in accordance with the Schedule or any other amount payable under this Deed by its due date for payment; or (j) breaches any other term or condition of this Deed, and fails to remedy the relevant failure or breach within 7 days after the Council’s notice. (b) If the Council calls on the Bank Guarantee as a result of the Developer’s failure to pay any amount due under this Deed, then the Council will apply the amount received pursuant to its claim on the Bank Guarantee in satisfaction of the Developer’s obligation to pay the relevant amount.
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Calling on Bank Guarantee. (a) The Council may call on the Bank Guarantee in the event that the Developer: (i) fails to make a payment of any part of the Development Contribution in accordance with the Schedule or any other amount payable under this Agreement by its due date for payment; or (ii) breaches any other term or condition of this Agreement, and fails to remedy the relevant failure or breach within 7 days after the Council’s notice. (b) If the Council calls on the Bank Guarantee as a result of the Developer’s failure to pay any amount due under this Agreement, then the Council will apply the amount received pursuant to its claim on the Bank Guarantee towards the Developer’s obligation to pay the relevant amount and will deduct that amount from the amount payable. In those circumstances, the Developer will be required to pay to the Council the outstanding balance of the Development Contribution and other amounts payable under this Agreement.
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Calling on Bank Guarantee. Without limitation to the Council’s rights under this Agreement and at law arising from a breach of this Agreement by the Developer: (a) Subject to clause 9.2(b), the Council may call on the Bank Guarantee in the event that the Developer: (i) fails to make a payment of any part of the Monetary Contribution in accordance with this Agreement by the Development Contribution Date; or (ii) breaches any other term or condition of this Agreement relating to delivery of the Monetary Contribution, and fails to remedy the relevant failure or breach within 7 business days after the Council’s notice. (b) The Council is not to call on the Bank Guarantee unless it has first given 20 business days’ written notice to the Developer of its intention to do so and included written particulars of why it intends to call on the Bank Guarantee, and the Developer has failed to remedy the relevant failure or breach within that time. (c) The Council may call on the Bank Guarantee without notice to the Developer in the event that an Insolvency Event occurs in respect of the Developer, but only if the Monetary Contribution remains wholly or partly unpaid as at the date of the Insolvency Event. (d) If the Council calls on the Bank Guarantee pursuant to this clause, then the Council will apply the amount received pursuant to its claim on the Bank Guarantee towards the Developer’s obligation to pay the Monetary Contribution and any costs and expenses incurred by Council in rectifying any default by the Developer to pay the Monetary Contribution under this Agreement. In circumstances where Council calls upon the Bank Guarantee and the available amount is insufficient to satisfy the Council’s claim, the Developer will be required to pay to the Council any outstanding balance.
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Calling on Bank Guarantee. (a) Notwithstanding any other provision herein, the Council may call on the Bank Guarantee in the event that the Developer: (i) fails to make the Development Contribution in accordance with this Agreement; or (ii) breaches any other term or condition of this Agreement and fails to remedy the relevant failure or breach within 7 days after the Council’s notice. (b) If the Council calls on the Bank Guarantee as a result of the Developer’s failure to comply with its obligations herein at no cost to Council under this Agreement, then the Council will apply the amount received pursuant to its claim on the Bank Guarantee towards: (i) the Council’s costs and expenses the Developer is responsible to pay under clause 18.2 together with the costs and expenses incurred by Council rectifying any default by the Developer under this Agreement; and (ii) carrying out any works required to achieve the Public Purpose. (c) If the Council calls on the Bank Guarantee and the costs incurred in clause 12.3(b) exceed the amount of the Bank Guarantee, then the amount that exceeds the amount of the Bank Guarantee will be a debt owed by the Developer to the Council and payable immediately upon demand.
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Calling on Bank Guarantee. The Council may call on the Bank Guarantee in the event that the Developer:
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Calling on Bank Guarantee. (a) The Council may call on the Bank Guarantee in the event that the Developer: (i) fails to make the Development Contribution in accordance with this Agreement; or (ii) breaches any other term or condition of this Agreement and fails to remedy the relevant failure or breach within 20 Business Days after the Council’s notice. (b) If the Council calls on the Bank Guarantee as a result of the Developer’s failure to dedicate the Road Land at no cost to Council in accordance with clauses 6.2 and 8.2 or pay any amount due in accordance with this Agreement, then the Council will apply the amount received pursuant to its claim on the Bank Guarantee towards the costs of enforcing the Developer’s obligation herein and will deduct that amount from any balance repayable to the Developer. In those circumstances, the Developer will be required to provide to Council a replacement Bank Guarantee up to the amount of the Bank Guarantee in accordance with clause 12.2 in order to continue to secure the Developer’s obligations herein.
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Calling on Bank Guarantee a) The Council may call on the Bank Guarantee in the event that the Developer: (i) fails to make a payment of any part of the Development Contribution by the Development Contribution Date or any other amount payable under this Deed by its due date for payment; or (ii) breaches any other term or condition of this Deed, and fails to remedy the relevant failure or breach within 7 days after the Council’s notice; or (iii) in the event of the Developer becoming insolvent or an application is made for bankruptcy or winding up of the Developer. b) If the Council calls on the Bank Guarantee as a result of the Developer’s failure to pay any amount due under this Deed, then the Council will apply the amount received pursuant to its claim on the Bank Guarantee in satisfaction of the Developer’s obligation to pay the relevant amount.
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Calling on Bank Guarantee. The Council may call on the Bank Guarantee in the event that the Developer: fails to make a payment of any part of the Development Contribution by the Development Contribution Date or any other amount payable under this Deed by its due date for payment; or breaches any other term or condition of this Deed, and fails to remedy the relevant failure or breach within 7 days after the Council’s notice; or in the event of the Developer becoming insolvent or an application is made for bankruptcy or winding up of the Developer. If the Council calls on the Bank Guarantee as a result of the Developer’s failure to pay any amount due under this Deed, then the Council will apply the amount received pursuant to its claim on the Bank Guarantee in satisfaction of the Developer’s obligation to pay the relevant amount. Provided that the Developer has complied with its obligations under this Deed including payment of the Development Contribution the Council will return the Bank Guarantee to the Developer. If required by the Council because it has called on the Bank Guarantee amount, the Developer shall immediately replace the Bank Guarantee with another Bank Guarantee to the full amount of the original Bank Guarantee. Council will promptly return the Bank Guarantee if it resolves to no longer pursue Gazettal Notice in relation to the Planning Proposal.
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Calling on Bank Guarantee. The Council may call on the Bank Guarantee in the event that the Developer: fails to make a payment of any part of the Development Contribution in accordance with the Schedule or any other amount payable under this Agreement by its due date for payment; or breaches any other term or condition of this Agreement, and fails to remedy the relevant failure or breach within 7 days after the Council’s notice. If the Council calls on the Bank Guarantee as a result of the Developer’s failure to pay any amount due under this Agreement, then the Council will apply the amount received pursuant to its claim on the Bank Guarantee towards the Developer’s obligation to pay the relevant amount and will deduct that amount from the amount payable. In those circumstances, the Developer will be required to pay to the Council the outstanding balance of the Development Contribution and other amounts payable under this Agreement.
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Related to Calling on Bank Guarantee

  • Bank Guarantee In addition to the Common Articles, it is specified that: In order to guaranty the proper execution of its contractual obligations pursuant to the Contract and/or Order(s), the Supplier shall issue in favor of the Purchaser a first demand and irrevocable performance bond from a first class bank or other financial institutes agreed by the Purchaser, to guaranty good performance by the Supplier of its obligations under the Contract. The Supplier shall issue the bond within thirty (30) days after issuance of the SPC or of the Order. Each performance bond shall amountto fifteen per cent (15%) of the total value of the concerned SPC and / or Order. Each performance bond shall expire when the relevant services have been fully performed in compliance with the Contract.

  • Role of L/C Issuer Each Lender and the Borrower agree that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. None of the L/C Issuer, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document. The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement. None of the L/C Issuer, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable or responsible for any of the matters described in clauses (i) through (v) of Section 2.03(e); provided, however, that anything in such clauses to the contrary notwithstanding, the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.

  • Performance Bank Guarantee 4.2.1 The Performance Bank Guarantee furnished by Power Producer to GUVNL shall be for guaranteeing the commissioining / commercial operation of the project up to the Contracted Capacity within SCOD. 4.2.2 If the Power Producer fails to commission the project on or before Scheduled Commercial Operation Date, GUVNL shall have the right to encash the Performance Bank Guarantee without prejudice to the other rights of the Power Producer under this Agreement as per Article 3.3. 4.2.3 GUVNL shall release the Performance Bank Guarantee upon successful commissioning of full contracted capacity after adjusting Liquidated Damages (if any) as per Article 3.3.

  • Special Account Instructions You may request that we facilitate certain trust, will, or court-ordered account arrangements. However, because we do not give legal advice, we cannot counsel you as to which account arrangement most appropriately meets the specific requirements of your trust, will, or court order. If you ask us to follow any instructions that we believe might expose us to claims, lawsuits, expenses, liabilities, or damages, whether directly or indirectly, we may refuse to follow your instructions or may require you to indemnify us or post a bond or provide us with other protection. We may require that account changes requested by you, or any account owner, such as adding or closing an account or service, be evidenced by a signed Account Change Card or other document which evidences a change to an account and accepted by us.

  • Role of Letter of Credit Issuer Each Lender and the Borrower agree that, in paying any drawing under a Letter of Credit, the Letter of Credit Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. None of the Letter of Credit Issuer, the Administrative Agent, any of their respective Affiliates nor any correspondent, participant or assignee of the Letter of Credit Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Required Revolving Credit Lenders; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document. The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided that this assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement. None of the Letter of Credit Issuer, the Administrative Agent, any of their respective Affiliates nor any correspondent, participant or assignee of the Letter of Credit Issuer shall be liable or responsible for any of the matters described in Section 3.3(e); provided that anything in such Section to the contrary notwithstanding, the Borrower may have a claim against the Letter of Credit Issuer, and the Letter of Credit Issuer may be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused by the Letter of Credit Issuer’s willful misconduct or gross negligence or the Letter of Credit Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, the Letter of Credit Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and the Letter of Credit Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.