Common use of SECURITY DEPOSIT (PERFORMANCE BOND Clause in Contracts

SECURITY DEPOSIT (PERFORMANCE BOND. 6.1 In the event the Order issued by the Buyer stipulates that the Seller is required to lodge with the Buyer a security deposit for the due and faithful performance of the Seller’s obligations pursuant to the Order and these conditions, the Seller shall deposit with the Buyer a Bank Draft or issue a Banker’s Guarantee (“Security Deposit”) acceptable to the Buyer within two weeks from the date of acceptance of the Order or as per supply agreement. The Buyer shall thereafter be entitled to utilize and make payments out of or deductions from the said Security Deposit in the event the Seller fails to meet its obligation relating to the Purchase Order for whatever reason and whether in whole or in part.

SECURITY DEPOSIT (PERFORMANCE BOND. 6.1 5.1 In the event the Order issued by the Buyer stipulates that the Seller is required to lodge with the Buyer a security deposit for the due and faithful performance of the Seller’s obligations pursuant to the Order and these conditions, the Seller shall deposit with the Buyer a Bank Draft or issue a Banker’s Guarantee (“Security Deposit”) acceptable to the Buyer within two weeks from the date of acceptance of the Order or as per supply agreement. The Buyer shall thereafter be entitled to utilize and make payments out of or deductions from the said Security Deposit in the event the Seller fails to meet its obligation relating to the Purchase Order for whatever reason and whether in whole or in part.