Good Performance Guarantee for the United States
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Good Performance Guarantee
"I need a Good Performance Guarantee for a construction project in Texas, where our bank will guarantee the performance of our primary contractor for a $5M development project starting March 2025, with specific milestones for completion of each building phase."
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1. Parties: Identification of guarantor and beneficiary
2. Background: Context of the underlying obligation being guaranteed
3. Definitions: Key terms used in the guarantee
4. Scope of Guarantee: Specific performance obligations being guaranteed
5. Duration: Term of the guarantee and conditions for expiry
6. Claims Process: Procedure for making claims under the guarantee
7. Governing Law: Applicable jurisdiction and law
1. Step-in Rights: Optional provisions detailing the rights of guarantor to take over performance in case of default
2. Counter-indemnity: Optional provisions for reimbursement to guarantor in case of claims
3. Assignment: Optional provisions governing the rights to assign or transfer the guarantee
1. Schedule of Guaranteed Obligations: Detailed list of performance obligations covered under the guarantee
2. Form of Demand: Template format for making claims under the guarantee
3. Performance Standards: Specific metrics or standards that must be met to satisfy the guarantee
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