Performance and Payment Guaranty Clause Samples
A Performance and Payment Guaranty clause requires a third party, often a guarantor, to ensure that the obligations of performance and payment under a contract are fulfilled if the primary party fails to do so. In practice, this means that if the contractor does not complete the work or fails to pay subcontractors or suppliers, the guarantor is legally responsible for covering these obligations. This clause is commonly used in construction and service contracts to protect the interests of the project owner or client. Its core function is to provide financial security and assurance that contractual commitments will be met, thereby reducing the risk of non-performance or non-payment.
Performance and Payment Guaranty. 46.2.1 In lieu of a Performance and Payment Bond, the Contractor may furnish an alternate form of security, which may be in the form of cash, money order, certified check, cashier's check, or irrevocable letter of credit. Such alternate forms of security shall be for the same purpose and shall be subject to the same conditions as those applicable above and shall be held by the City for one (1) year after completion and acceptance of the Project.
Performance and Payment Guaranty. 76 SECTION 10.1. Unconditional and Irrevocable Guaranty......................................................76 SECTION 10.2. Enforcement.................................................................................77 SECTION 10.3. Obligations Absolute........................................................................77 SECTION 10.4. Waiver......................................................................................78 SECTION 10.5. Subrogation.................................................................................78 SECTION 10.6. Survival....................................................................................78 SECTION 10.7. Guarantors' Consent to Assigns..............................................................78 SECTION 10.8. Continuing Agreement........................................................................79 ARTICLE 11 MISCELLANEOUS...............................................................................79
Performance and Payment Guaranty. In lieu of bonds, LESSEE may furnish an irrevocable letter of credit. Such alternate form of performance and payment guaranty shall be for the same purpose as the bonds and shall be subject to the prior approval of LESSOR's County Attorney's Office and Port Everglades Department's Risk Manager. The irrevocable letter of credit shall be held by LESSOR for one year after the final completion date of the construction work by ▇▇▇▇▇▇. It is understood and agreed, that ▇▇▇▇▇▇ shall be responsible for all costs and expenses relating to: (i) LESSEE's improvements including, but not limited to, the design, permitting and construction thereof; and (ii) all other improvements necessary to LESSEE's use of the Premises including, but not limited to, improvements mandated by any governmental authority having jurisdiction over the Premises and/or the operations and use thereof.
Performance and Payment Guaranty. In lieu of a performance bond and payment bond, FEC may furnish an alternate form of security which may be in the form of cash, money order, certified check, cashier’s check or irrevocable letter of credit. Such alternate forms of security shall be for the same purpose and shall be subject to the same conditions as those applicable above and shall be held by County and remain in effect for one (1) year after final completion and acceptance of the work.
Performance and Payment Guaranty. Guarantor hereby absolutely, unconditionally and irrevocably guarantees to IPA E-Med's full and prompt payment and full and timely performance and observance of all the terms and conditions of the Agreement and will perform E-Med's obligations under the Agreement in the event that E-Med fails to perform. Guarantor hereby covenants and agrees that if E-Med should default under the Agreement, Guarantor shall forthwith faithfully perform and fulfill all of such terms, covenants, conditions and agreements. Guarantor shall also forthwith pay to IPA all damages, costs and expenses that may arise in consequence of any default by IPA or the enforcement of this Guaranty. This Guaranty shall be a continuing guaranty and the liability of Guarantor shall in no way be affected, modified or diminished by reason of any assignment, amendment, renewal, supplement or modification of the Agreement.
Performance and Payment Guaranty. In lieu of a performance bond and payment bond, H.T. may furnish an alternate form of security which may be in the form of cash, money order, certified check, cashier’s check or irrevocable letter of credit. Such alternate forms of security shall be for the same purpose and shall be subject to the same conditions as those applicable above and shall be held by COUNTY and remain in effect for one (1) year after final completion and acceptance of the work.
Performance and Payment Guaranty