Guidance Note - The Project Owner should consider whether it will require an unconditional bank guarantee or other form of security from the NOPs in respect of the performance of the NOPs' obligations under the Agreement. Please note that this clause 26 contemplates that the NOPs will provide an unconditional bank guarantee. If the Project Owner determines that an alternative form of security is required, then this clause will need to be amended accordingly. |
(a) On the date of this Agreement, the NOPs must provide an irrevocable and unconditional bank guarantee in favour of the Project Owner in the amount of $[insert amount], on terms and conditions and from a financial institution acceptable to the Project Owner, as security for performance by the NOPs of their respective terms, covenants and responsibilities under this Agreement. This unconditional bank guarantee, the amount and terms of operation, applies irrespective of clause 21.
(b) The NOPs acknowledge and agree that all security required to be provided by them under this Agreement will at all times be provided by each NOP in the following proportions:
(1) Non-Owner Participant 1 - [insert percentage]%; and
(2) Non-Owner Participant 2 - [insert percentage]%.