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Indemnity Bond Agreement
"I need an Indemnity Bond Agreement for a construction project in Manchester, where my company will act as guarantor for a £5 million development, with the bond to be effective from March 2025 and including step-in rights for the guarantor."
1. Parties: Details of the indemnifier and indemnitee, including full legal names and addresses
2. Background: Context of the indemnity, including the underlying transaction or relationship
3. Definitions: Key terms used throughout the document, including 'Secured Obligations', 'Bond Amount', 'Enforcement Event'
4. Bond Amount: Specific sum for which the indemnifier is liable
5. Scope of Indemnity: Detailed description of what losses, damages, or circumstances are covered
6. Duration: Term of the bond and any conditions for expiry
7. Payment Terms: Procedure and timing for making claims and payments
8. Governing Law and Jurisdiction: Confirmation of English and Welsh law and courts' jurisdiction
1. Security Provisions: Details of any security provided to support the bond - include when additional security is required
2. Step-in Rights: Rights of the indemnifier to take over obligations - include in construction or project-related bonds
3. Insurance Requirements: Specific insurance obligations - include when insurance is part of the risk mitigation strategy
4. Assignment and Transfer: Rights to assign or transfer the bond - include when transfer rights are important to parties
1. Schedule 1 - Form of Demand: Template for making claims under the bond
2. Schedule 2 - Underlying Agreement: Copy or summary of the agreement being secured
3. Schedule 3 - Security Documents: Details of any supporting security arrangements
4. Schedule 4 - Notice Requirements: Specific requirements for serving notices under the bond
Authors
Beneficiary
Bond Amount
Business Day
Claim
Commencement Date
Default Event
Demand
Effective Date
Enforcement Event
Expiry Date
Guaranteed Obligations
Indemnified Losses
Indemnifier
Liability
Notice
Obligor
Party/Parties
Principal
Secured Obligations
Security
Security Documents
Termination Date
Underlying Agreement
Authorised Representative
Claim Period
Enforcement Notice
Event of Default
Interest Rate
Maximum Liability
Payment Date
Performance Standards
Project
Security Trustee
Step-in Rights
Working Hours
Payment Obligations
Bond Amount
Duration and Term
Representations and Warranties
Enforcement
Claims Procedure
Notice Requirements
Default Events
Remedies
Security
Governing Law
Jurisdiction
Assignment
Costs and Expenses
Force Majeure
Confidentiality
Entire Agreement
Severability
Amendments
Waiver
Step-in Rights
Insurance
Interest
Currency
Set-off Rights
Third Party Rights
Counterparts
Further Assurance
Time of Essence
Joint and Several Liability
Dispute Resolution
Mediation
Arbitration
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