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

Performance Bank Guarantee/ Payment on Order. Instrument 3.3.1 The Performance Bank Guarantee (PBG)/Payment on Order Instrument (POI) having validity from the date of submission of PBG/POI until 27 months from the Effective Date of this Agreement, for a value of INR …….to be furnished 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 and 2. 3.3.2 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. 3.3.3 If the SPD fails to commence supply of power from the Scheduled Commissioning Date specified in this Agreement or any further extension thereof granted by MSPDCL, subject to conditions mentioned in Article 4.5, MSPDCL shall encash the Performance Bank Guarantee/POI equivalent to the penalty leviable as on the date of encashment without prejudice to the other rights of MSPDCL under this Agreement.

Performance Bank Guarantee/ Payment on Order. Instrument 3.3.1 The Performance Bank Guarantee (PBG)/Payment on Order Instrument (POI) having validity from the date of submission of PBG/POI until 27 months from the Effective Date of this Agreement, for a value of INR …….to «« to be furnished 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 and 2. 3.3.2 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. 3.3.3 If the SPD fails to commence supply of power from the Scheduled Commissioning Date specified in this Agreement or any further extension thereof granted by MSPDCL, subject to conditions mentioned in Article 4.5, MSPDCL shall encash the Performance Bank Guarantee/POI equivalent to the penalty leviable as on the date of encashment without prejudice to the other rights of MSPDCL under this Agreement.