Common use of Performance Bank Guarantee/ Payment on Order Clause in Contracts

Performance Bank Guarantee/ Payment on Order. Instrument 3.2.1 The Performance Bank Guarantee (PBG)/ Payment on Order Instrument (POI)/ Insurance Surety Bond (Surety Bond) having validity from the date of submission of PBG/POI/Surety Bond until …………(insert validity period as per RfS conditions), submitted for a value of Rs. (in words) under this Agreement, shall be for guaranteeing the commencement of the supply of power up to the Contracted Capacity within the time specified in this Agreement as per format provided in Schedule 1/ Schedule 2/ Schedule 3. 3.2.2 The failure on the part of the SPD to furnish and maintain the Performance Bank Guarantee/ POI shall be a material breach of the term of this Agreement on the part of the SPD. 3.2.3 If the SPD fails to commence supply of power from SCSD specified in this Agreement or any further extension thereof granted by SECI, subject to conditions mentioned in Article 4.5, SECI shall encash the Performance Bank Guarantee/ POI equivalent to the amount calculated as per penalties applicable under Article 4.6 as on the date of encashment without prejudice to the other rights of SECI under this Agreement. It is to be noted that the damages/dues recovered by SECI by encashing the PBG/ POI, upon the default of the SPD under the PPA, shall be credited to the payment security fund maintained by SECI under the PPA.

Performance Bank Guarantee/ Payment on Order. InstrumentInstrument (POI) 3.2.1 3.3.1 The Performance Bank Guarantee (PBG)/ Payment on Order Instrument (POI)/ Insurance Surety Bond (Surety Bond) having validity from the date of submission of PBG/POI/Surety Bond POI until …………9 (insert validity period as per RfS conditions)nine) months after Scheduled Commissioning Date, submitted for having a value of Rs. 18.39 Lakh/MW (in words) Rs. 18,39,000/MW), to be furnished under this Agreement, Agreement shall be for guaranteeing the commencement of the supply of power up to the Contracted Capacity within the time specified in this Agreement as per format provided in Schedule 1/ 1/Schedule 2/ Schedule 32. 3.2.2 3.3.2 The failure on the part of the SPD HPD to furnish and maintain the Performance Bank Guarantee/ Guarantee/POI shall be a material breach of the term of this Agreement on the part of the SPDHPD. 3.2.3 3.3.3 If the SPD HPD fails to commence supply of power from SCSD the Scheduled Commissioning Date specified in this Agreement or any further extension thereof granted by SECI, subject to conditions mentioned in Article 4.5, SECI shall encash the Performance Bank Guarantee/ Guarantee/POI equivalent to the amount calculated as per penalties liquidated damages applicable under Article 4.6 as on the date of encashment without prejudice to the other rights of SECI under this Agreement. It is to be noted that the damages/dues recovered by SECI by encashing the PBG/ PBG/POI, upon the default of the SPD HPD under the PPA, shall be credited to the payment security fund maintained by SECI under the PPA.