Common use of Payment guarantees Clause in Contracts

Payment guarantees. 6.7.1. Where it has been fixed that the payment must come with a bank guarantee, the Buyer, together with the order confirmation, must provide the Seller with a bank demand guarantee, issued according to the ICC’s Uniform Rules for Demand Guarantees by a primary Italian bank and payable against simple Seller’s declaration of not having received the payment within the agreed deadline. 6.7.2. Save for what is fixed by article 1.1.3 above, other possible forms of guarantee released by the Buyer for purchases done by other Buyers will be ruled by a separate guarantee agreement. 6.7.3. The Parties can agree on specific payment guarantees in favor of the Seller (suretyship released by a primary bank or insurance agency; registration of a mortgage upon real estate or machinery). The Parties agree on such guarantees in a separate act. 6.7.4. In case the Buyer or his guarantors do not perform the agreed guarantees according to the agreed terms and conditions, the Seller can suspend the execution of his obligations and the Buyer will not have anything to claim. After thirty (30) days from the expected day of the guarantee payment the Seller can terminate the agreement.