Model Form of Bank Guarantee Bond [paragraph 2.2.7.2]

master_circulars · 1934 · State unknown

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Parent: THE RESERVE BANK OF INDIA ACT, 1934 (edb4b0bb51aeed408edafc1e5ca731cd0dbe73f6)

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Model Form of Bank Guarantee Bond [paragraph 2.2.7.2] GUARANTEE BOND 1. In consideration of the President of India (hereinafter called 'the Government') having agreed to exempt _______________________________ [hereinafter called 'the said Contractor(s)'] from the demand, under the terms and conditions of an Agreement dated ___________ made between ______ ___________________________________________ and___________________________________for_____________ (hereinafter called 'the said Agreement'), of security deposit for the due fulfilment by the said Contractor(s) of the terms and conditions contained in the said Agreement, on production of a bank Guarantee for Rs. __________ (Rupees______________________________________ Only) We, ______________________________________________________________, (hereinafter referred (indicate the name of the bank) to as 'the Bank') at the request of _________________________________________________ [contractor(s)] do hereby undertake to pay to the Government an amount not exceeding Rs. ______________ against any loss or damage caused to or suffered or would be caused to or suffered by the Government by reason of any breach by the said Contractor(s) of any of the terms or conditions contained in the said Agreement. We _______________________________________________________ (indicate the name of the bank) do hereby undertake to pay the amounts due and payable under this guarantee without any demur, merely on a demand from the Government stating that the amount claimed is due by way of loss or damage caused to or would be caused to or suffered by the Government by reason of breach by the said contractor(s) of any of the terms or conditions contained in the said Agreement or by reason of the contractor(s)' failure to perform the said Agreement.

Rule TOC

1 · In consideration of the President of India (hereinafter called 'the Government') having agreed to exempt _______________________________ [hereinafter called 'the said Contractor(s)'] from the demand, under the terms and conditions of an Agreement dated ___________ made between ______ ___________________________________________ and___________________________________for_____________ (hereinafter called 'the said Agreement'), of security deposit for the due fulfilment by the said Contractor(s) of the terms and conditions contained in the said Agreement, on production of a bank Guarantee for Rs. __________ (Rupees______________________________________ Only) We, ______________________________________________________________, (hereinafter referred (indicate the name of the bank) to as 'the Bank') at the request of _________________________________________________ [contractor(s)] do hereby undertake to pay to the Government an amount not exceeding Rs. ______________ against any loss or damage caused to or suffered or would be caused to or suffered by the Government by reason of any breach by the said Contractor(s) of any of the terms or conditions contained in the said Agreement.

4 · We,_____________________________________________________________ (indicate the name of bank) further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the performance of the said Agreement and that it shall continue to be enforceable till all the dues of the Government under or by virtue of the said Agreement have been fully paid and its claims satisfied or discharged or till__________________________________ Office/Department/Ministry of________________________________ certifies that the terms and conditions of the said