FERFORMANCE GUARANTEE FORMAT(BANK LETTERHAD)
to: ____________(company name),a company incorporated under the laws of and having its registered office at ____________(hereinafter called' npog')
whereas
(1) by an agreement for the ____________(hereinafter referred to as the of the one part and npog of the other part, the contractor agrees to perform the works in accordance with the contract.
(2) one of the expressed conditions of the contract is the receipt by npog of this guarantee duly executed by (name of banker:) ____________(hereinafter called the ' guarantor') who hereby irrevocably and unconditionally guarantees and undertakes to npog as follows:
i) if the contractor shall in any respect fail to execute the contract or commit any breach of this obligations thereunder the guarantor shall pay to npog on first demand without proof or conditions the sum of us. dollar ____________(usd: ____________) within 14 days after receipt of the said demand notwithstanding any contestation or protest by the contractor or any other third party.
ii) the guarantor shall not be discharged or released from this guarantee by any agreement made between the contractor and npog with or without the consent of the guarantor or by any alteration in the obligations undertaken by the contractor or by any forbearance whether as to payment time, performances or otherwise, or by any change in mane or constitution of npog or the contractor.
iii) this guarantee is continuing security and accordingly shall remain in force until the issuance of the notice for final acceptance of three(3) months after the early termination of the contract, whichever is earlier.
iv) the guarantor agree that the grauantee is given regardless whether or not the sum outstanding occasioned by the loss, damages costs ,expenses or otherwise incurred by npog is recoverable by legal action or arbitration.
in witness whereof this guarantee has been duly executed by guarantor the____________ day of ____________.
for and on behalf of ____________
(name of banker)
signature: ____________________
name: _______________________
designation:___________________
banker' s seal: _________________
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