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Performance Security Guarantee Template

1) A performance guarantee has been issued by [Bank's Name] to [Name and Address of Owner] for contractor [Name of Operator] concerning a contract to design, build, operate and transfer an STP, sewerage network, pumping stations and allied works in [City and State]. 2) The performance guarantee ensures payment of up to [Amount in Figures] ([Amount in Words]) to the owner if the operator breaches its contract obligations. 3) The performance guarantee expires the earlier of six months after the end date defined in the contract or six months after termination of the contract pursuant to its terms.

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Prasenjit Dey
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125 views1 page

Performance Security Guarantee Template

1) A performance guarantee has been issued by [Bank's Name] to [Name and Address of Owner] for contractor [Name of Operator] concerning a contract to design, build, operate and transfer an STP, sewerage network, pumping stations and allied works in [City and State]. 2) The performance guarantee ensures payment of up to [Amount in Figures] ([Amount in Words]) to the owner if the operator breaches its contract obligations. 3) The performance guarantee expires the earlier of six months after the end date defined in the contract or six months after termination of the contract pursuant to its terms.

Uploaded by

Prasenjit Dey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Annexure A – Part d

FORM OF PERFORMANCE SECURITY


[Bank’s Name, and Address of Issuing Branch
or Office]
Beneficiary: [Name and Address of Owner]
Date:
PERFORMANCE GUARANTEE NO.:
We have been informed that [name of Operator] (hereinafter called ―the Operator‖)
has entered into Contract No. [reference number of the contract] dated with you,
concerning a contract to Design, build, operate and transfer STP, Sewerage Network,
Pumping Stations, all appurtenant structures and allied works in ……..[city and
State](hereinafter called ―the Contract‖).
Furthermore, we understand that, according to the conditions of the Contract, a
performance guarantee is required.
At the request of the Operator, we [name of Bank] hereby irrevocably undertake to pay
you any sum or sums not exceeding in total an amount of [amount in figures] (
)[amount in words], upon receipt by us of your first demand in writing accompanied by
a written statement stating that the Operator is in breach of its obligations under the
Contract, without your needing to prove or to show grounds for your demand or the
sum specified therein.
This guarantee shall expire no later than the earlier of:
(a) six months after the End Date, as defined in the Contract; or
(b) six months after the date of termination of the Contract pursuant to its
terms.
Consequently, any demand for payment under this guarantee must be received by us at
this office on or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees (URDG) 2010
Revision, ICC Publication No. 758 except that the supporting statement under Article
15(a) is hereby excluded.
Yours truly,
[Name of Bank]
Authorised Signature

Page 69 of 490

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