Operating Bond Sample Clauses
An Operating Bond clause requires a party, typically a contractor or operator, to provide a financial guarantee ensuring the performance of their obligations under an agreement. This bond is usually issued by a third-party surety and covers activities such as construction, operation, or maintenance, protecting the other party from losses if the operator fails to meet contractual requirements. The core function of this clause is to allocate risk and provide financial security, ensuring that the project or operation will be completed as agreed or that compensation will be available in case of default.
POPULAR SAMPLE Copied 12 times
Operating Bond. It refers to the letter of guarantee issued by a Financial Institution to be presented by the Concession Holder to ensure compliance with all of its contractual obligations since the Commercial Start-Up, including the penalties of the agreement. In all cases, the Operating Bond may be comprised of more than one letter of guarantee, provided that they add up the total amount demanded for the corresponding guarantee. Such guarantees shall be joint and several, unconditional, irrevocable, with an express waiver of the benefit of excussion and division and automatically enforceable. The Operating Bond shall adhere to the format of Annex No. 4-A of the Contract.
Operating Bond. All of Seller’s rights, title, and interest in and to the operating bond are hereby assigned to the buyer;
Operating Bond. (a) During the Term, Lessee shall provide and maintain a bond in favor of Lessor from an “A” rated or higher bonding company qualified to do business in the State in an amount no less than one hundred percent (100%) of the projected annual operating budget for the following Fiscal Year (“Operating Bond”). Lessee shall cause such Operating Bond to be adjusted each Fiscal Year of the Term to reflect the annual operating budget for that Fiscal Year. Lessee shall provide written documentation of the amount of the Operating Bond to Lessor at the beginning of each Fiscal Year.
(b) If Lessor terminates this Agreement pursuant to an Event of Default by Lessee or Lessee otherwise fails to perform its obligations under this Agreement and Lessor subsequently incurs costs, expenses, or losses to remedy such nonperformance, Lessor shall be entitled to the proceeds of the Operating Bond.