Common use of Handback Security Clause in Contracts

Handback Security. 9.3.1 The Private Partner shall submit to the Public Partner an unconditional and irrevocable on-demand bank guarantee issued by a Reliable Bank, substantially in the form of the guarantee letter set out in ANNEX 5 (Requirements for Securities) and together with the relevant agreement on the Handback Security, to secure the due performance of the Private Partner's handback obligations under this Agreement (the "Handback Security"): 9.3.1.1 no later than ten (10) Business Days after receiving the conclusion of the Independent Expert prepared based on the results of the first Handback Condition Survey in accordance with Clause 20.2 for the amount in AMD specified in such conclusion – in case there is no early Termination of the Agreement; 9.3.1.2 no later than ten (10) Business Days after receiving the conclusion of the Independent Expert prepared based on the results of the Handback Condition Survey in accordance with Clause 20.2 for the amount in AMD specified in such conclusion – in case there is an early Termination of the Agreement and the handback is carried out in connection with such early Termination. 9.3.2 If the bank issuing the Handback Security at any time from the date of submitting the Handback Security to the Public Partner fails to meet the requirements to Reliable Banks set out in ANNEX 6 (Requirements to Reliable BanksRequirements to Reliable Banks), the Private Partner shall, as soon as possible, but no later than ten (10) Business Days, obtain a new Handback Security for the same amount remaining at the time of such occurrence, from a bank complying with the requirements to Reliable Banks. 9.3.3 If the Private Partner failed to provide the Public Partner with the Handback Security prior to the term specified in Clauses 9.3.1.1 and 9.3.1.2, the Public Partner shall be entitled to draw on the entire amount of the Operation Security. Private Partner's failure to provide and/or maintain the validity of the Handback Security in accordance with the requirements of this Clause 9.3 for a period of more than thirty three (33) Business Days shall be deemed a Private Partner Event of Default. 9.3.4 The Handback Security shall be valid from its issuance date according to Clause 9.3.1 until the expiry of thirty (30)-day term from the date of signing of the Handback Act according to Clause 20.5. 9.3.5 If the Handback Security is scheduled to expire until the expiry of the period indicated in Clause 9.3.4, the Private Partner shall no later than twenty two (22) Business Days before the relevant expiration date of the Handback Security extend the validity period of such Handback Security or replace it. 9.3.6 Upon the receipt by the Private Partner of each report of the Independent Expert following the relevant Handback Condition Survey conducted according to Clause 20.2, the Private Partner shall, within ten (10) Business Days from receiving such a report, submit to the Public Partner a notification of changing the amount of the Handback Security, provided that the amount of the Handback Security shall not be lower than the amount specified in the conclusion of the Independent Expert based on the results of the relevant survey. 9.3.7 Within five (5) Business Days after receiving calculation of the amount of the Handback Security based on the results of the relevant survey, the Public Partner shall: 9.3.7.1 approve the amount of the Handback Security provided by the Private Partner and submit to the Private partner a written notice with such approval; or 9.3.7.2 reject the amount of the Handback Security provided by the Private partner in case such an amount is lower than the amount specified in the conclusion of the Independent Expert based on the results of the relevant survey, and submit to the Private Partner the written notice with the instruction to provide the Handback Security for the amount indicated in the said conclusion. 9.3.8 The Public Partner may determine a different amount of the Handback Security solely in case the conclusion of the Independent Expert following the relevant survey was challenged under the procedure set out in Section 26 and solely within the scope of the amount established based on such challenge. 9.3.9 In case the conclusion of the Independent Expert is challenged under Section 26, the Private Partner shall provide the Handback Security in the amount specified in the conclusion of the Independent Expert, and increase/decrease its amount under the arbitral award based on the results of the relevant challenge in accordance with the Handback Security amount indicated in the said arbitral award. 9.3.10 The Private Partner shall provide the Public Partner with the new Handback Security within fifteen (15) Business Days after receiving the written notice of the Public Partner according to Clause 9.3.7. 9.3.11 If on the date of signing of the Handback Act the Handback Assets: 9.3.11.1 do not conform to the requirements set out in Section 20, without prejudice to any other rights the Public Partner may have under this Agreement, the Public Partner shall be entitled to claim withdrawal of the Handback Security for the amount specified by the Independent Expert in the conclusion on the results of the relevant Handback Condition Survey; 9.3.11.2 conform to the requirements set out in Section 20, the Public Partner shall return the bank guarantee letter on provision of the Handback Security to the Private Partner and submit the written notice of releasing the guarantee to the bank that issued the Handback Security.