Common use of CONTRACT PERFORMANCE GUARANTEE Clause in Contracts

CONTRACT PERFORMANCE GUARANTEE. 21.1 As security for the timely fulfillment of the obligations assumed by the Concession Holder under the present Contract, the Concession Holder shall post a guarantee in the amount of US$10 million, which shall be kept in effect throughout the term of the Concession and updated in accordance with the Producer Price Index for Finished Goods, Seasonally Adjusted – Total, published monthly by the Bureau of Labor Statistics of the United States Department of Labor. The posting of this guarantee may not be invoked by the Concession Holder as a means of limiting or avoiding the complete fulfillment of all of the obligations assumed by the Concession Holder under the present Contract. The issuing bank and the terms on which the guarantee is issued and/or renewed must be approved by the Office of the Head of the Cabinet. The aforementioned guarantee may be renewable for successive periods of no less than two years, such renewal to occur no less than 60 days in advance of each expiration date.