Common use of SECURITY FOR PAYMENT OF INSTALMENTS BEFORE DELIVERY Clause in Contracts

SECURITY FOR PAYMENT OF INSTALMENTS BEFORE DELIVERY. The BUYER shall, concurrently with the payment of 1st instalment of the Contract Price, deliver to the BUILDER an irrevocable and unconditional letter of guarantee (“Payment Guarantee”) issued by a bank to be nominated by BUYER (“Payment Guarantor”). Such Payment Guarantee issued by the Payment Guarantor in a form annexed hereto as Exhibit B, in favour of the BUILDER, shall guarantee the BUYER’s obligation for the payment of the 2nd instalment of the Contract Price. All cost, fees and duties for such Payment Guarantee shall be borne by BUILDER. Such Payment Guarantee shall be acceptable to BUILDER and BUILDER’s bank.