Common use of Contract Performance Security Clause in Contracts

Contract Performance Security. 10.2.1 The Operator shall, for the performance of its obligations hereunder in respect of the O&M Services, provide to the Authority, no later than 60 (sixty) days from the Effective Date, an irrevocable and unconditional guarantee from a Bank for a sum equivalent to INR 49.95 lakhs (INR Forty nine lakhs and ninety five thousand only) in the form set forth in SCHEDULE 6 (Format of Contract Performance Security) (“Contract Performance Security”), with a validity upto 1 (one) year from the Appointed Date and shall be renewed not less than 1 (one) month prior to expiry of its validity period, for an additional term of 1 (one) year. 10.2.2 Until such time the Contract Performance Security is provided by the Operator pursuant hereto and the same comes into effect, the Bid Security shall remain in force and effect, and upon such provision of the Contract Performance Security pursuant hereto, the Authority shall release the Bid Security to the Operator. 10.2.3 Notwithstanding anything to the contrary contained in this Contract, in the event Contract Performance Security is not provided by the Operator within a period of 60 (sixty) days from the Effective Date, the Authority may encash the Bid Security and appropriate the proceeds thereof as Damages, and thereupon all rights, privileges, claims and entitlements of the Operator under or arising out of this Contract shall be deemed to have been waived by, and to have ceased with the concurrence of the Operator, and this Contract shall be deemed to have been terminated by mutual agreement of the Parties.

Contract Performance Security. 10.2.1 The Operator shall, for the performance of its obligations hereunder in respect of the O&M Services, provide to the Authority, no later than 60 (sixty) days from the Effective Date, an irrevocable and unconditional guarantee from a Bank for a sum equivalent to INR 49.95 85.29 lakhs (INR Forty nine Eighty five lakhs and ninety five twenty nine thousand only) in the form set forth in SCHEDULE 6 (Format of Contract Performance Security) (“Contract Performance Security”), with a validity upto 1 (one) year from the Appointed Date and shall be renewed not less than 1 (one) month prior to expiry of its validity period, for an additional term of 1 (one) year. 10.2.2 Until such time the Contract Performance Security is provided by the Operator pursuant hereto and the same comes into effect, the Bid Security shall remain in force and effect, and upon such provision of the Contract Performance Security pursuant hereto, the Authority shall release the Bid Security to the Operator. 10.2.3 Notwithstanding anything to the contrary contained in this Contract, in the event Contract Performance Security is not provided by the Operator within a period of 60 (sixty) days from the Effective Date, the Authority may encash the Bid Security and appropriate the proceeds thereof as Damages, and thereupon all rights, privileges, claims and entitlements of the Operator under or arising out of this Contract shall be deemed to have been waived by, and to have ceased with the concurrence of the Operator, and this Contract shall be deemed to have been terminated by mutual agreement of the Parties.