CONTRACT GUARANTEES Clause Samples
The CONTRACT GUARANTEES clause sets out the assurances or commitments made by one party to ensure the performance or obligations of another party under the contract. Typically, this clause details the scope and conditions of the guarantee, such as whether it covers payment, performance, or both, and may specify the duration and limitations of the guarantee. By including this clause, the contract provides additional security to the beneficiary, reducing the risk of non-performance or default by the primary obligor.
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CONTRACT GUARANTEES. Prior to Closing, the parties shall use commercially reasonable efforts (a) to cause all guarantees, suretyship, performance and other bonds, letters of credit or similar arrangements securing the performance of any of the Merging Companies or any of its subcontractors, agents or affiliates and required pursuant to the terms of the Contracts (“Contract Guarantees”) to continue in full force and effect following the Effective Time or (b) to cause such Contract Guarantees to be replaced with other guarantees, suretyship, performance and other bonds, letters of credit or similar arrangements in accordance with the terms of such Contracts, in either case referred to in clause (a) or (b), without cost or liability to any Seller.
CONTRACT GUARANTEES. If BGL, at PGR's request, provides or has provided at any time, a financial guarantee in favor of a third party in respect of the payment by PGR of any financial obligation under any contract with a third party, BGL shall be entitled to charge a fee for each year or any portion thereof (on a pro rata basis) that the guarantee remains in effect calculated at the rate of 3% per annum on the aggregate maximum amount of the financial obligation in each year. For the purposes of this provision a year means each consecutive 12-month period during which a financial obligation is guaranteed commencing on the day that BGL's guarantee becomes effective.
CONTRACT GUARANTEES. The Company makes the following guarantees for IRA Accounts established under the Contract:
(a) The factors deducted from the Adjusted Gross Investment Rate of a Separate Account Sub-Account to obtain its Net Investment Rate will not exceed the equivalent of (i) .90% per annum for mortality and expense risks and (ii) .25% per annum for administrative charges.
(b) The IRA Account Fee and Surrender Charge will not exceed the amount specified in this Certificate.
(c) The interest rate for Net Contributions allocated to the General Account will be guaranteed for at least one year and will never be at a rate less than the applicable minimum rate specified in Section 4.02. The Company assumes the risk that actual mortality experience and expenses may exceed the maximum charges made to cover such mortality and expenses. If actual mortality experience and expenses exceed the amounts provided for such costs, the Company will absorb the resultant losses. If actual mortality experience and expenses are less than the amounts provided for such costs, the difference will be a profit to the Company.
CONTRACT GUARANTEES. A. NO-DEDUCTIBLE GUARANTEE