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BG Format For Security Deposit

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517 views3 pages

BG Format For Security Deposit

Uploaded by

happ_dent
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BANK GUARANTEE FOR SECURITY DEPOSIT FORMAT

(To be prepared on Stamp paper of Rs. 500/- issued in the name of Bank)

This BANK GUARANTEE No. _________________________ made this day of


____________ between _________________________________________ a bank incorporated and
having its registered office at ______________________________ (hereinafter called BANK)
which expression shall unless repugnant to the context or contrary to the meaning
thereof include its successors and assigns on the One part and Ramagundam
Fertilizers and Chemicals Limited, a Company registered in India under Companies
Act, 2013 and having its Registered Office at Core - III, Scope Complex, 7,
Institutional Area, Lodhi Road, New Delhi - 110003, India to the context or contrary
to the meaning thereof include its successors and assigns on the other part.

WHEREAS in pursuance to the agreement No. ___________________ dated __________


(hereinafter called CONTRACT) entered into between Ramagundam Fertilizers and
Chemicals Limited (hereinafter called OWNER) and
________________________________________________________ a Company incorporated in
________________________ (hereinafter called CONTRACTOR) which expression shall unless
repugnant to the context or contrary to the meaning thereof include its successors and
assigns, for supply of ______________________________________ as envisaged in the Contract,
Contractor has to submit a SECURITY DEPOSIT for Rs.____________.

CONTRACTOR accordingly agrees to furnish the Bank Guarantee for Security


Deposit as hereinafter contained towards fulfillment of all of its obligations under the
contract.

NOW THIS DEED WITNESSES AS FOLLOWS:

1. In pursuance of the Contract, the Bank hereby guarantees as a direct


responsibility to the OWNER that the BANK is holding the amount of Rs.
_____________________________ at Owner's disposal and hereby promises and shall
be bound to pay to OWNER, forthwith at Owner's written notice stating that the
contractor has failed to fulfill its obligations under the contract for reasons for
which contractor is liable and without any protest or demur and without recourse
to contractor and without asking for any reasons as to whether the amount if
lawfully asked for by Owner or not, the entire amount or the portion thereof as
mentioned by Owner in the notice.

The decision of the Owner as to whether the terms and conditions of this BANK
GUARANTEE FOR SECURITY DEPOSIT have been observed or not shall be final and
binding on the BANK. In any case, however the Bank's responsibility under this
BANK GUARANTEE FOR SECURITY DEPOSIT is limited to Rs. _____________________

2. This BANK GUARANTEE FOR SECURITY DEPOSIT shall be valid for an initial period
of ________________ months from the date of this Bank Guarantee No.
_________________________ dated ___________________ given by the Bank to Owner
become effective. Upon issuance of Commissioning/ Erection / Completion
certificate according to terms of contract on expiry of _________________ months
after the issuance of the above- mentioned certificate of commissioning / erection
/ completion certificate, the BANK GUARANTEE FOR SECURITY DEPOSIT shall
become null and void.

3. This BANK GUARANTEE FOR SECURITY DEPOSIT shall be in addition to and shall
not affect or be affected by any other security now or hereafter held by Owner on
account of money hereby intended to secure and Owner at its discretion and
without any further consent from the Bank, and without affecting its rights against
the Bank, may compound with, give time or other indulgence to or make any
other arrangement with Contractor and nothing done or omitted to be done by
Owner in pursuance of any authority or permission contained in this guarantee,
shall effect discharge of the liability of the Bank.
:2:

4. UNLESS PREVIOUSLY CANCELLED BY THE OWNER, this Bank Guarantee for


Security Deposit will remain in force initially up to __________________ months from
the effective date of Bank Guarantee No. ________________ dated ____________ given
by the Bank to the Owner and subject to provisions of paragraph 2 above will
stand automatically cancelled on the expiry of the said period. Unless demand or
claim under this Bank Guarantee is made on Bank in writing within three months
from the date of expiry of this Bank Guarantee, all the rights of Owner against the
Bank shall be forfeited and Bank shall be relieved and discharged from all the
liabilities hereunder.

5. Any notice by way of request, demand or otherwise hereunder may be sent by


post to the Bank, addressed as aforesaid, and if sent by post, it shall be deemed
to have been given at the time when it would be delivered in due course of post,
and in proving such notice, when given by post, it shall be sufficient to prove that
the envelope containing the notice was posted and a certificate, signed by an
officer of the owners, to the effect that the envelope was so posted, shall be
conclusive.

6. The BANK GUARANTEE FOR SECURITY DEPOSIT is to be returned to the Bank after
its expiry in terms of Paragraph 4 above.

7. The Bank declares that it has the power to issue this guarantee and the
undersigned have full power to do so.

Dated _______________ this __________________ day of _____________.

(Indicate the name of the Bank with


stamp)

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