Common use of Security for Performance Clause in Contracts

Security for Performance. No later than the Effective Date, ▇▇▇▇▇▇▇▇▇’▇ shall provide a performance bond in the amount of one million five hundred thousand dollars ($1,500,000.00) representing the estimate of the security required to assure ▇▇▇▇▇▇▇▇▇’▇ faithful performance of all obligations hereunder. The performance bond shall apply to all obligations hereunder, regardless of whether additional security for the performance of any obligation as to any or all portions of the Quarry is provided elsewhere in this Agreement. The performance bond shall be issued in favor of the City in case of breach of any obligation by ▇▇▇▇▇▇▇▇▇’▇ hereunder (following the notice and cure provisions of Section 10.4 herein) to guarantee compensation for any costs and damages incurred by the City in performing ▇▇▇▇▇▇▇▇▇’▇ obligations hereunder. However, if the ▇▇▇▇▇ ▇▇▇▇ referenced in Section 9.7 is increased above nine hundred ninety eight thousand nine hundred and seventy two dollars ($998,972.00), the amount of the performance bond under this Section shall be reduced by a dollar for dollar amount, though in no event shall the performance bond hereunder be less than one million dollars ($1,000,000.00.)