Performance LOC definition

Performance LOC means an LOC used directly or indirectly to cover a default in the performance of any non-financial or commercial obligations of any Applicant or any Subsidiary Account Party under specific contracts, and any LOC issued in favor of a bank or other surety who in connection therewith issues a guarantee or similar undertaking, performance bond, surety bond or other similar instrument that covers a default of any such performance obligations, that is classified as a performance standby letter of credit by the Board of Governors of the Federal Reserve System or by the Office of the Comptroller of the Currency of the United States.
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Performance LOC means a letter of credit used directly or indirectly to cover a default in the performance of any non-financial or commercial obligations of a Person under specific contracts, and any letter of credit issued in favor of a bank or other surety who in connection therewith issues a guarantee or similar undertaking, performance bond, surety bond or other similar instrument that covers a default of any such performance obligations, that is classified as a performance standby letter of credit by the FRB or by the OCC or any other applicable regulatory authority.
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Examples of Performance LOC in a sentence

  • Owner shall return the Five Percent LOC and the Performance LOC to Contractor upon their respective expiration dates subject to any extensions permitted hereunder.

  • In the event that Contractor fails to pay liquidated damages pursuant to Article 22 of this Contract within 30 days of the date due under the Contract, then Owner shall be entitled to draw upon the Five Percent LOC and Performance LOC for the amount due by Contractor.

  • Contractor shall deliver such Performance LOC within two hundred seventy (270) days after and the Notice to Proceed Date and such delivery shall be a condition precedent to Owner’s further obligations hereunder.

  • Subject to Section 34.10, the Performance LOC shall remain in full force and effect through Substantial Completion.

  • The Performance LOC shall remain in full force and effect until Contractor has achieved Unit 2 Provisional Acceptance.