Obligations of the Developer. In addition to and not in derogation or substitution of any of its other obligations under this Agreement, the Developer shall have the following obligations: Performance Security The Developer shall, for due and punctual performance of its obligations relating to the Project, should submit to the Authority a demand draft from a scheduled bank acceptable to the Authority for an amount equal to the Annual Fee payable for the year subsequent to such submission (the “Performance Security”). The first of such Performance Security has been submitted prior to signing of this Agreement for a sum of Rs. /- (Rupees only). The Performance Security shall be kept valid throughout the Agreement Period and the Developer shall ensure that the amount of Performance Security submitted is equal to the Annual Fee payable for the subsequent year of such submission. The Authority shall not be liable to pay any interest on the Performance Security and the same shall be interest free. In case of Developer’s Event of Default, the Authority shall, without prejudice to its other rights and remedies hereunder or in law, be entitled to encash and appropriate the relevant amounts from the Performance Security as damages for such Developer default. Upon such encashment and appropriation from the Performance Security, the Developer’s shall, within 30 (thirty) days thereof, replenish, in case of partial appropriation, to its original level of the Performance Security, and in case of appropriation of the entire Performance Security provide a fresh Performance Security, as the case may be, and the Developer shall, within the time so granted, replenish or furnish fresh Performance Security as aforesaid failing which the Authority shall be entitled to terminate this Agreement in accordance with Article 9 -.
Appears in 4 contracts
Samples: Project Development and Management Agreement, Project Development and Management Agreement, Project Development and Management Agreement
