Forms Of Securities Samples (Page 6 of 6) in pdf

Forms Of Securities Samples Page 6

Section 8 - Forms of Securities

BANK GUARANTEE FOR ADVANCE PAYMENT

To:

__________________________________________ [name of Employer]

__________________________________________ [address of Employer]

___________________________________________[name of Contract]

Gentlemen:

In accordance with the provisions of the Conditions of Contract, subclause 51.1 ("Advance Payment") of

the above-mentioned Contract, ________________________________ [name and address of Contractor]

(hereinafter called "the Contractor") shall deposit with ________________________ [name of Employer] a bank

guarantee to guarantee his proper and faithful performance under the said Clause of the Contract in an amount of

_____________ [amount of guarantee]

_________________________________ [in words].

We, the ____________________ [bank or financial institution], as instructed by the Contractor, agree

unconditionally and irrevocably to guarantee as primary obligator and not as Surety merely, the payment to

____________________ [name of Employer] on his first demand without whatsoever right of objection on our part

and without his first claim to the Contractor, in the amount not exceeding ____________________ [amount of

guarantee]

__________________________________ [in words].

We further agree that no change or addition to or other modification of the terms of the Contract or of

Works to be performed thereunder or of any of the Contract documents which may be made between

_____________________ [name of Employer] and the Contractor, shall in any way release us from any liability

under this guarantee, and we hereby waive notice of any such change, addition or modification.

This guarantee shall remain valid and in full effect from the date of the advance payment under the

Contract until _________________________ [name of Employer] receives full repayment of the same amount from

the Contractor.

Yours truly,

Signature and seal: _______________________________

Name of Bank/Financial Institution: _________________

Address: _______________________________________

Date: ____________________

__________________________

An amount shall be inserted by the bank representing the amount of the Advance Payment, and

denominated in Indian Rupees.

GSHP-II: Bidding Document Volume 2

Forms Of Securities Samples Page 6