Security Cheque Sample Clauses
A Security Cheque clause requires one party to provide a post-dated or undated cheque as a form of collateral to secure the performance of contractual obligations. In practice, this cheque is held by the other party and may be deposited if the first party defaults on payments or breaches the agreement. The core function of this clause is to provide a straightforward and immediate remedy for non-payment or non-performance, thereby reducing the risk of loss and encouraging compliance with the contract terms.
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Security Cheque. The security bank cheque will be returned to the SUPPLIER/CONTRACTOR after successful completion of the construction.
Security Cheque is already executed and signed by the "Borrower". The "Borrower" authorises the "Bank' to insert the date on the said cheque and present for payment upon default by the Borrower in paying of any instalment. In such circumstances the whole amount outstanding including any default interest and other charges will become due and payable. As and when required, the "Bank may request the "Borrower" to replace the Undated Cheque and the "Borrower" agrees to provide the same. (The "Borrower" understands that this cheque would in the ordinary course be destroyed by the Bank" on satisfactory settlement of the "Loan" unless specifically requested by the "Borrower" 7 days before the settlement of the "Loan" to be returned to the Borrower)