Provision of Performance Security Clause Samples

The Provision of Performance Security clause requires one party, typically the contractor or service provider, to furnish a financial guarantee ensuring fulfillment of their contractual obligations. This security may take the form of a bank guarantee, surety bond, or other acceptable instruments, and is usually submitted before work commences or upon contract signing. Its core function is to protect the other party from losses or damages if the contractor fails to perform as agreed, thereby allocating risk and providing assurance of contract completion.
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Provision of Performance Security. (a) Project Operator must provide the Performance Security to the Commonwealth within 20 Business Days after the Signing Date or as otherwise agreed in writing between the parties. (b) If Project Operator does not provide the Performance Security by the date required under paragraph (a), then the Commonwealth may terminate this agreement by written notice to Project Operator with immediate effect.
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Provision of Performance Security a) The Concessionaire shall for due and punctual performance of obligations hereunder in relation to the construction of the 1397 stainless steel bus queue shelters (Consisting of 4 distinct zones i.e. ▇▇▇▇-▇, ▇▇▇▇-▇, ▇▇▇▇-▇ & Zone-4) deliver to DTIDCL, simultaneously with the execution of this Agreement, a bank guarantee from a Indian Scheduled Bank in favour of DTIDCL for a sum of Rs. 3.50 Crore for Zone-1, Rs. 3.50 Crore for Zone-2, Rs. 3.50 Crore for Zone-3 and Rs.
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Related to Provision of Performance Security

  • Appropriation of Performance Security (i) Upon occurrence of a Contractor’s Default, the Authority shall, without prejudice to its other rights and remedies hereunder or in law, be entitled to encash and appropriate the relevant amounts from the Performance Security as Damages for such Contractor’s Default. (ii) Upon such encashment and appropriation from the Performance Security, the Contractor shall, within 30 (thirty) days thereof, replenish, in case of partial appropriation, to its original level the Performance Security, and in case of appropriation of the entire Performance Security provide a fresh Performance Security, as the case may be, and the Contractor shall, within the time so granted, replenish or furnish fresh Performance Security as aforesaid failing which the Authority shall be entitled to terminate the Agreement in accordance with Article 23. Upon replenishment or furnishing of a fresh Performance Security, as the case may be, as aforesaid, the Contractor shall be entitled to an additional Cure Period of 30 (thirty) days for remedying the Contractor’s Default, and in the event of the Contractor not curing its default within such Cure Period, the Authority shall be entitled to encash and appropriate such Performance Security as Damages, and to terminate this Agreement in accordance with Article 23.

  • Release of Performance Security (i) The Authority shall return the Performance Security to the Contractor within 60 (sixty) days of the expiry of the Maintenance Period or the Defects Liability Period, whichever is later, under this Agreement. Notwithstanding the aforesaid, the Parties agree that the Authority shall not be obliged to release the Performance Security until all Defects identified during the Defects Liability Period have been rectified. (ii) The Authority shall return the Additional Performance Security to the Contractor within 28 (twenty eight) days from the date of issue of Completion Certificate under Article 12 of this Agreement. (iii) The Authority shall be liable to pay interest @ 9% (nine per cent) per annum for any delay in the return of Performance Security and Additional Performance Security, if any, beyond the period prescribed above for the period of delay.

  • Suspension of Performance Notwithstanding any other provision hereof, if an Event of Default or a Potential Event of Default has occurred and is continuing, the Non-Defaulting Party, upon written notice to the Defaulting Party, has the right (i) to suspend performance under any or all Transactions and (ii) to the extent an Event of Default has occurred and is continuing, to exercise any remedy available at law or in equity, except as limited be Section 5.7.

  • Prohibition of Performance Requirements 1. The provisions of the Agreement on Trade-Related Investment Measures in Annex 1A to the WTO Agreement (TRIMs), which are not specifically mentioned in or modified by this Agreement, shall apply, mutatis mutandis, to this Agreement. 2. Member States shall undertake joint assessment on performance requirements no later than 2 years from the date of entry into force of this Agreement. The aim of such assessment shall include reviewing existing performance requirements and considering the need for additional commitments under this Article.

  • Timing of Payment of Performance When the payment of any obligation or the performance of any covenant, duty or obligation is stated to be due or performance required on a day which is not a Business Day, the date of such payment (other than as described in the definition of Interest Period) or performance shall extend to the immediately succeeding Business Day.