Performance Security General Provisions Clause Samples

Performance Security General Provisions. 7.12.2.1 The Design & Construction Guaranty will provide that it may be transferred by Tenant to Landlord, as beneficiary, with rights to draw upon or exercise other remedies thereunder if Landlord, succeeds to the position of Tenant under the Construction Contract. The Performance Bond and Payment Bond must be issued by an Eligible Security Provider and name the Landlord as an additional obligee pursuant to a multiple oblige rider. 7.12.2.2 Landlord may draw on any form of Performance Security either individually or simultaneously, and unless otherwise specified in this Lease, a draw on any form of Performance Security will not be conditioned on prior resort to any other security or each other form of Performance Security. If Landlord receives proceeds of a draw on any Performance Security in excess of the relevant obligation, Landlord will promptly refund the excess to Tenant (or to its designee) after all relevant obligations are satisfied in full. 7.12.2.3 The Tenant or its Construction Contractors will obtain and furnish all Construction Performance Security and replacements thereof at its sole cost and expense and will pay all charges imposed in connection with Landlord’s presentment of sight drafts and drawing against any Construction Performance Security or replacements thereof (to the extent made in accordance with the terms hereof). 7.12.2.4 In the event Landlord makes a permitted assignment of its rights and interests under this Lease, Tenant will cooperate so that concurrently with the effectiveness of such assignment, either replacement Performance Security for, or appropriate amendments to, the outstanding Construction Performance Security will be delivered to the assignee naming the assignee as replacement beneficiary, at no cost to Tenant.