PERFORMANCE BOND (PB). 11.1. The Seller’s Bank, in accordance with the provisions set out, will post into the beneficiary’s bank account nominated by the Buyer, an irrevocable, revolving, transferable, Performance Bond to cover two percent (2%) of each monthly quantity, revolving for the entire contract period as per Addendum №4. 11.2. The format of the Performance Bond shall be in accordance with the least UCP 500 (Uniform Customs and Practice for Documentary Credits, 1999 revision, ICC Publication No. 500 & 2000). 11.3. In the event of Non-Performance by the Seller, the Seller’s PB will be called up by the Buyer and the Seller will instruct his bank to issue a new PB within a period twenty-four (24) hours having the same tenor as the previous one. Should this be the case, all future payments due by the buyer will be suspended until such a time the new PB has been placed.
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Sources: Sales & Purchase Agreement, Sales & Purchase Agreement