Performance Bond
Content
(Name of Company)- PERFORMANCE BOND
____________________________________________________________________________________________________________________________________________________________________________
(On the Letterhead of the Bank)
(Date) To: _________________________ (Name) _________________________ (Address) _________________________ (Address)
Dear Sir, PERFROMANCE GUARANTEE – (Name of Company)-(Name and Description of the Project) You entered into a contract with __________________________(Name of Company) dated ______________. We, (Name of Bank), irrevocably and unconditionally undertake with you that whenever you give written notice to us stating that in your sole and absolute judgment the (1st party) has failed to observe or perform any of the terms, conditions or provisions of the Contract on its part to be observed or performed, we will, notwithstanding any objection which may be made by the (1st Party) and without any right of set-off or counterclaim, immediately pay to you or as you may direct such amount as you may in such notice require not exceeding (Amount in words and Figure). This Bank Guarantee (Performance Bond) is valid and will continue to be valid from the date of this letter for the Guaranteed Sum until the Performance Certificate is issued by or on behalf of the Employer to you, the 2nd Party pursuant to the main contract or, if a dispute arises under the contract, after the final determination of that dispute, whichever occurs later. Upon receiving a notice from you, we shall immediately effect payment to your Account No. __________with (Name of Bank and Address) of the value of the sum claimed by you in relation to the default up to the maximum value of the Guaranteed Sum and any payment by us in accordance with this Guarantee must be immediately available and freely transferable (Amount in words) free and clear of and without any deduction for or on account of any present or future taxes, levies, imposts, duties, charges, fees, set off, counterclaims, deductions or withholdings of any nature whatsoever and by whomever imposed.
Page 1 of 3 Legal Documents series of 2010
Our obligations under this Guarantee constitute direct primary, irrevocable and unconditional obligations, and do not require any previous notice to or claim against the Nominee and will not be discharged or otherwise prejudiced or adversely affected by any: • • • • • Time, lenience or tolerance which you may grant to the Nominee; Amendment, modification or extension which may be made to the Contract or the Works executed under the Contract; Intermediate payment or other fulfillment made by us; Change in the constitution or organization of the Nominee; or Other matter or thing which in the absence of this provision would or might have that effect, except a discharge or amendment expressly made or agreed to by you in writing.
This Guarantee may not be assigned by you to any person, firm or company other than an Affiliate (being a related, subsidiary, sister or parent or group company), without written consent, which must not be unreasonably withheld. You must notify us in writing of any assignment, after which we must make any payment claimed under this Guarantee to the person, firm or company specified in the notice which will constitute a full and valid release by us in relation to that payment. Any notice required by this Guarantee is deemed to be given on the date of receipt of the notice/registered post/recorded delivery or as otherwise advised by and between the parties. Our liability under this Guarantee will be irrevocable and, except as stated in this Guarantee, unconditional in all respects. Capitalized words and phrases used within this Guarantee have the same meaning as are given to them in the Contract. The laws governing this Guarantee shall be the laws applicable in the ________ and the jurisdiction shall be that of the Court of Municipality of _________. IN WITNESS of which the (Name of Bank) has duly executed this Guarantee on the date stated above.
Page 2 of 3 Legal Documents series of 2010
SIGNED for and on behalf of (Name of Bank) As their duly authorized and appointed Representative in the presence of
) ) ) ) ) ) .................................................................................. ) Signature of Witness ) ) ) ) ................................................................................... ) Name of Witness ) ) ................................................................................. ) Address of witness ) Address for Notices: ___________________________ ___________________________ ___________________________ ___________________________ ___________________________
.................................................. Executed by the duly authorized and appointed representative
...................................................
Bank Stamp
Page 3 of 3 Legal Documents series of 2010
____________________________________________________________________________________________________________________________________________________________________________
(On the Letterhead of the Bank)
(Date) To: _________________________ (Name) _________________________ (Address) _________________________ (Address)
Dear Sir, PERFROMANCE GUARANTEE – (Name of Company)-(Name and Description of the Project) You entered into a contract with __________________________(Name of Company) dated ______________. We, (Name of Bank), irrevocably and unconditionally undertake with you that whenever you give written notice to us stating that in your sole and absolute judgment the (1st party) has failed to observe or perform any of the terms, conditions or provisions of the Contract on its part to be observed or performed, we will, notwithstanding any objection which may be made by the (1st Party) and without any right of set-off or counterclaim, immediately pay to you or as you may direct such amount as you may in such notice require not exceeding (Amount in words and Figure). This Bank Guarantee (Performance Bond) is valid and will continue to be valid from the date of this letter for the Guaranteed Sum until the Performance Certificate is issued by or on behalf of the Employer to you, the 2nd Party pursuant to the main contract or, if a dispute arises under the contract, after the final determination of that dispute, whichever occurs later. Upon receiving a notice from you, we shall immediately effect payment to your Account No. __________with (Name of Bank and Address) of the value of the sum claimed by you in relation to the default up to the maximum value of the Guaranteed Sum and any payment by us in accordance with this Guarantee must be immediately available and freely transferable (Amount in words) free and clear of and without any deduction for or on account of any present or future taxes, levies, imposts, duties, charges, fees, set off, counterclaims, deductions or withholdings of any nature whatsoever and by whomever imposed.
Page 1 of 3 Legal Documents series of 2010
Our obligations under this Guarantee constitute direct primary, irrevocable and unconditional obligations, and do not require any previous notice to or claim against the Nominee and will not be discharged or otherwise prejudiced or adversely affected by any: • • • • • Time, lenience or tolerance which you may grant to the Nominee; Amendment, modification or extension which may be made to the Contract or the Works executed under the Contract; Intermediate payment or other fulfillment made by us; Change in the constitution or organization of the Nominee; or Other matter or thing which in the absence of this provision would or might have that effect, except a discharge or amendment expressly made or agreed to by you in writing.
This Guarantee may not be assigned by you to any person, firm or company other than an Affiliate (being a related, subsidiary, sister or parent or group company), without written consent, which must not be unreasonably withheld. You must notify us in writing of any assignment, after which we must make any payment claimed under this Guarantee to the person, firm or company specified in the notice which will constitute a full and valid release by us in relation to that payment. Any notice required by this Guarantee is deemed to be given on the date of receipt of the notice/registered post/recorded delivery or as otherwise advised by and between the parties. Our liability under this Guarantee will be irrevocable and, except as stated in this Guarantee, unconditional in all respects. Capitalized words and phrases used within this Guarantee have the same meaning as are given to them in the Contract. The laws governing this Guarantee shall be the laws applicable in the ________ and the jurisdiction shall be that of the Court of Municipality of _________. IN WITNESS of which the (Name of Bank) has duly executed this Guarantee on the date stated above.
Page 2 of 3 Legal Documents series of 2010
SIGNED for and on behalf of (Name of Bank) As their duly authorized and appointed Representative in the presence of
) ) ) ) ) ) .................................................................................. ) Signature of Witness ) ) ) ) ................................................................................... ) Name of Witness ) ) ................................................................................. ) Address of witness ) Address for Notices: ___________________________ ___________________________ ___________________________ ___________________________ ___________________________
.................................................. Executed by the duly authorized and appointed representative
...................................................
Bank Stamp
Page 3 of 3 Legal Documents series of 2010
