Section 6.2 Failure to Post Performance Securities

- Failure of the PROPONENT-LESSOR to post any of the performance securities shall be sufficient ground for the LGU-LESSEE not to execute this Agreement. Should the LGU-LESSEE, under any of the conditions stipulated under Article 14, terminate this Agreement, the performance security not so released shall be forfeited in favor of the PROPONENT-LESSOR without any need of judicial action. The PROPONENT-LESSOR shall obtain the consent of the surety, if necessary, for any changes to this Agreement to ensure the effectivity of the performance securities submitted to the LGU-LESSEE.