Advance Payment Guarantee

Advance Payment Guarantee

Bank Guarantee Date                     :_______________________________

Brief Description of Contract         :___________________________

Beneficiary    Name                         :           M/s. ____________________________________. (Whom the Contract defines as the Purchaser)

            At the request of ISGEC Heavy Engineering Limited having its Registered Office at Yamunanagar-135001, Haryana, India and an office at A-4, Sector-24, NOIDA-201301, (India) (hereinafter called the “Supplier”)

 we, _______________________________(name of the bankhereby irrevocably undertake to pay you the Beneficiary/Purchaser any unadjusted sum or sums of advance not exceeding in total the amount of USD 99,963 (US Dollars Ninety Nine Thousand Nine Hundred Sixty Three only) upon receipt by us of your demand in writing and your written statement stating:

(a)       That the Supplier has failed to repay the advance payment in accordance with the conditions of the Contract, and

(b)       The amount which the Supplier has failed to repay.

            This Guarantee shall become effective upon receipt of the full advance payment of __________ (US Dollar s _______________________Only) by the Supplier in account      with ___________________ Such guaranteed amount shall be automatically reduced by the amounts of the advance payment repaid to you by way of proportionate adjustment in the amount invoiced for the dispatch of Machinery and Equipment upon receipt of copy of Invoice and Bill of Lading from the Supplier, without any consent from the Beneficiary/Purchaser.

            Any demand for payment must contain your signature(s) which must be authenticated by your bankers or by a notary public. The claim must be authenticated and statement must be received by us in this office on or before ________________ when this Guarantee shall expire and shall be returned to us.

                                                           

-2-

            We have been informed that the Beneficiary/Purchaser may require the Supplier to extend this Guarantee if the advance payment has not been fully adjusted by the date____________ days prior to such expiry date. We undertake to pay you such remaining unadjusted advance amount upon receipt by us, within such period of _____________ days of your demand in writing and your written statement that the advance payment has not been adjusted fully and that this Guarantee has not been extended.

            This Guarantee shall be subject to the Uniform Rules for Demand Guarantees published as number 758 by the International Chamber of Commerce, except as stated above.

            Notwithstanding anything stated hereinbefore the liability of the Guarantor under this Guarantee is restricted to USD 99,963 (US Dollars Ninety Nine Thousand Nine Hundred Sixty Three only)    This Guarantee shall remain in force up to _______________ (date), Unless a demand under this Guarantee is received by the Guarantor in writing before ______________ (date) all rights of the Beneficiary/Purchaser under this Guarantee shall be forfeited and the Guarantor shall be released and discharged from all liabilities hereunder.

This Guarantee is Non-assignable and Non-Transferable.