Common use of Definitive Security Clause in Contracts

Definitive Security. 5.1.- The successful bidder has constituted a definitive security for the amount of Euros. This amount corresponds to the percentage of the Contract value established in section H of the Summary Chart and in clause 15 of the Specific Administrative Bidding Conditions that govern the contract. 5.2.- This security is common and enforceable upon the first request, with an unconditional compulsory nature and an express and solemn waiver of all exceptions and reservations and, among others, of the benefits of exclusion, order and division. 5.3.- The security will respond for the exact fulfilment by the contractor of each of the obligations resulting from this contract and shall remain in force until the expiry of the warranty period and the contract has been satisfactorily completed or terminated for reasons not attributable to the contractor and following the procedures established therein. The security thus constituted will respond for any possible terminations of the contract, the application of penalties, compensation for damages arising from non-fulfilment of the contractor's obligations and, in general, for the faulty fulfilment of the obligations befalling the contractor. 5.4.- In any of the cases considered in the paragraph above, the VHIR may freely and of its own free will act against the aforementioned security and, in consequence, to dispose of the appropriate amounts, notwithstanding the actions, claims or appeals the contractor may lodge, which shall under no circumstances suspend the free availability of the security for the VHIR, whose only obligation would be to return the sums thus used when appropriate. 5.5.- In the event that the amount of the security should prove insufficient to cover the damages suffered by the VHIR, said institution may claim the difference that was not covered by the security from the contractor and, if necessary, it may discount it from the amounts pending payment to the contractor. The remainder shall be paid directly and immediately by the contractor at the request of the VHIR.

Definitive Security. 5.1.- The successful bidder has constituted a definitive security for the amount of 3.000,00 Euros. This amount corresponds to the percentage of the Contract value established in section H of the Summary Chart and in clause 15 of the Specific Administrative Bidding Conditions that govern the contract. 5.2.- This security is common and enforceable upon the first request, with an unconditional compulsory nature and an express and solemn waiver of all exceptions and reservations and, among others, of the benefits of exclusion, order and division. 5.3.- The security will respond for the exact fulfilment by the contractor of each of the obligations resulting from this contract and shall remain in force until the expiry of the warranty period and the contract has been satisfactorily completed or terminated for reasons not attributable to the contractor and following the procedures established therein. The security thus constituted will respond for any possible terminations of the contract, the application of penalties, compensation for damages arising from non-fulfilment of the contractor's obligations and, in general, for the faulty fulfilment of the obligations befalling the contractor. 5.4.- In any of the cases considered in the paragraph above, the VHIR may freely and of its own free will act against the aforementioned security and, in consequence, to dispose of the appropriate amounts, notwithstanding the actions, claims or appeals the contractor may lodge, which shall under no circumstances suspend the free availability of the security for the VHIR, whose only obligation would be to return the sums thus used when appropriate. 5.5.- In the event that the amount of the security should prove insufficient to cover the damages suffered by the VHIR, said institution may claim the difference that was not covered by the security from the contractor and, if necessary, it may discount it from the amounts pending payment to the contractor. The remainder shall be paid directly and immediately by the contractor at the request of the VHIR.