Format For Performance Bank Guarantee (I.E. Performance Security Bond)

FORMAT FOR PERFORMANCE BANK GUARANTEE
(i.e. PERFORMANCE SECURITY BOND)
In consideration of the ----------------------- (hereinafter called “the said OWNER”)

having agreed under the terms and conditions of Work Order No. -----------dated ---------
made between ----------------------- (hereinafter called “the said Contractor(s)”) for
Proposed Construction of (G + ------) storied Building(s) (namely ------------) on Complete
------------ basis at ------------------. (hereinafter called “the said agreement”) for compliance
of his obligation in accordance with the terms and conditions in the said agreement.
We ----------- Bank Limited a banking company under the Banking Companies

(Acquisition and Transfer of Undertakings) Act 1970, having our Registered Office at -----
--------------- (hereinafter referred to as “as Bank”) hereby undertake to pay to the ----------
--- an amount not exceeding RS.-------------/- (----------------------) on demand by the ---------
----------.
2. We, ----------- Bank Limited, do hereby undertake to pay the amount due and
payable under this Guarantee without any demur, merely on a demand from the ----------
stating that the amount claimed is required to meet the recoveries due or likely to be due
from the said contractor(s). Any such demand made on the Bank shall be conclusive as
regards the amount due and payable by the bank under this Guarantee. However, our
liability under this guarantee shall be restricted to an amount not exceeding RS.------------
/- (------------------------------------------------)
3. We undertake to pay to the ------------------------ any money so demanded

notwithstanding any dispute or disputes raised by the contractor(s) in any suit or
proceeding before any Court or Tribunal relating thereto our liability under this present
being absolute and unequivocal.
The payment made by us under this bond shall be valid discharge of our liability
for payment to there under and the contractor(s) shall have no claim against us making
such payment.
4. We, --------- Bank Ltd., further agree that the guarantee herein contained shall
remain in full force and effect during the period that would be taken for the performance
of the said agreement and that it shall continue to be enforceable till all the dues of the---
--------- (Name of the company) under or by virtue of the said agreement have been fully
paid and its claims satisfied or discharged or till Engineer-in-charge on behalf of the ------
-----(Name of the Company) certifies that the terms and conditions of the said Agreement
have been fully and properly carried out to the said contractor(s) accordingly discharges
this guarantee.
5. We, -------- Bank Limited, further agree with the ---------(Name of Company) that --
------------ (Name of Company) shall have the fullest liberty without our consent and
without affecting any manner our obligations hereunder to vary any of the terms and
conditions of the said agreement or to extend time of performance by the said
contractor(s)from time to time any of the powers exercisable by the --------(Name of
Company) against the said contractor(s) and to forebear or enforce any of the terms and
conditions relating to the said agreement shall not be relieved from our liability by
reasons of any such variation or extension being granted to the said contractor(s) or for
any forbearance act of omission on that part of the ----------- (Name of Company) or any
indulgence by the ---------- (Name of Company) to the said contractor(s) or by any such
matter or thing whatsoever which under the law relating to sureties would, but for this
provision have effected or so relieving us.
6. The guarantee will not be discharged due to the change in the constitution of the
Bank or the contractor(s).
7. We, ----------- Bank Limited, lastly undertake not to revoke this guarantee except
with the previous consent of the ------------- (Name of Company) in writing.
8. This guarantee shall be valid up to ------------- (Date) unless extended on demand

by ----------- (Company). Notwithstanding anything mentioned above our liability against
this Guarantee is restricted to RS.-----------/- (Rupees in words -------------------------)
9. Notwithstanding anything contained herein:

(a) Our liability under this Bank Guarantee shall not exceed RS.------------/-
(Rupees in words--------------------------------)
(b) This Bank Guarantee shall be valid up to ---------------- (Date).

(c) We are liable to pay the guaranteed amount or part thereof under this Bank
Guarantee only and only if you serve upon us a written claim or demand on or before ---
----------- (Date).
Date:-

Format For Performance Bank Guarantee (I.E. Performance Security Bond)

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Format For Performance Bank Guarantee (I.E. Performance Security Bond)

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FORMAT FOR PERFORMANCE BANK GUARANTEE

(i.e. PERFORMANCE SECURITY BOND)

In consideration of the ----------------------- (hereinafter called “the said OWNER”)

We ----------- Bank Limited a banking company under the Banking Companies

3. We undertake to pay to the ------------------------ any money so demanded

8. This guarantee shall be valid up to ------------- (Date) unless extended on demand

9. Notwithstanding anything contained herein:

(b) This Bank Guarantee shall be valid up to ---------------- (Date).

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