Common use of PAYMENTS UNDER THE GUARANTEE Clause in Contracts

PAYMENTS UNDER THE GUARANTEE. 5.1 Each payment to be made to the Authority by the Contractor under this Guarantee shall be made in the appropriate currency in accordance with the terms of the PFD Agreements, in such manner as the Authority may from time to time direct and accompanied by a copy of a written notice from the Authority to Contractor, dated at least thirty (30) days prior to the Authority’s demand under this Guarantee, notifying Contractor of its failure to fulfil the terms of the PFD Agreement. 5.2 All such payments shall be calculated without reference to any set-off or counterclaim and shall be made in full and free and clear of, and without any deduction for or on account of, any set-off or counterclaim. 5.3 If any payment received by the Authority pursuant to the provisions of this Deed or the PFD Agreements shall be avoided under any laws relating to insolvency, such payment shall not be considered as having discharged or diminished the liability of the Contractor or the Guarantor hereunder; and the liability of the Contractor and the Guarantor hereunder shall continue to apply as if such payment had at all times remained owing by the Contractor and the Guarantor, and the Contractor and the Guarantor shall indemnify the Authority in respect thereof. 5.4 If the Guarantor defaults in the payment when due of any sum payable by it under this Guarantee, its liability shall be increased to include interest on such sum from the due date until the date of actual payment (both before and after judgment) at that annual rate which is 2 percentage points above the average base rate of National Bank of Oman, Oman Arab Bank and Oman International Bank from time to time in effect during such period. All such interest shall be calculated on the basis of the actual number of days elapsed, over a 365-day year and compounded monthly.