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Indemnity Bond Agreement
"I need an Indemnity Bond Agreement for a construction project in Auckland, with a bond amount of NZD 5 million to secure contractor performance, effective from March 1, 2025, for a 24-month duration."
1. Parties: Identifies and defines all parties to the agreement - the Indemnitor (party providing the indemnity), the Indemnitee (party receiving the protection), and any other relevant parties
2. Background: Sets out the context and purpose of the indemnity bond, including the underlying transaction or obligation being secured
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Bond Amount: Specifies the maximum amount of the indemnity bond and any conditions affecting this amount
5. Scope of Indemnity: Details the specific risks, losses, or circumstances covered by the indemnity bond
6. Term and Duration: Specifies the commencement date and duration of the bond, including any renewal provisions
7. Obligations of the Indemnitor: Sets out the specific duties and responsibilities of the party providing the indemnity
8. Conditions for Claims: Establishes the circumstances and process for making claims under the bond
9. Payment Terms: Details the timing and method of payments for valid claims
10. Termination: Specifies circumstances under which the bond may be terminated and the consequences
11. Governing Law and Jurisdiction: Confirms New Zealand law applies and specifies jurisdiction for disputes
12. Execution: Formal signing section including witness requirements
1. Security Provisions: Required when specific assets or securities are pledged to support the indemnity obligation
2. Insurance Requirements: Included when the indemnitor must maintain specific insurance coverage
3. Assignment and Transfer: Needed when the agreement allows for transfer of rights or obligations
4. Force Majeure: Included when certain events should excuse performance under the bond
5. Confidentiality: Required when sensitive information is involved in the underlying transaction
6. Multiple Indemnitors: Included when more than one party provides the indemnity, establishing joint and several liability
7. Dispute Resolution: Optional detailed provisions for alternative dispute resolution procedures
1. Schedule 1 - Bond Details: Detailed specifications of the bond amount, payment terms, and any calculation methods
2. Schedule 2 - Secured Obligations: Comprehensive list of obligations covered by the indemnity bond
3. Schedule 3 - Claim Procedures: Detailed procedures and requirements for making and processing claims
4. Schedule 4 - Security Details: Description of any security or collateral provided to support the bond
5. Appendix A - Forms: Standard forms for claims, notices, or other required communications
6. Appendix B - Insurance Certificates: Copies of required insurance certificates or policies
7. Appendix C - Corporate Authorizations: Copies of relevant corporate authorizations and resolutions
Authors
Applicable Law
Bond Amount
Business Day
Claim
Claim Notice
Commencement Date
Confidential Information
Default Event
Effective Date
Expiry Date
Force Majeure Event
Guaranteed Obligations
Indemnified Party
Indemnifying Party
Indemnity Period
Losses
Material Adverse Effect
Notice
Parties
Payment Date
Protected Obligations
Related Entity
Security
Security Interest
Secured Property
Specified Events
Surety
Term
Termination Date
Trigger Event
Underlying Agreement
Working Day
Definitions
Bond Amount and Payment
Scope of Indemnity
Security Arrangements
Conditions Precedent
Representations and Warranties
Covenants
Events of Default
Claims Procedure
Payment Terms
Termination
Assignment
Notices
Confidentiality
Force Majeure
Dispute Resolution
Governing Law
Jurisdiction
Entire Agreement
Severability
Amendments
Counterparts
Time of Essence
Further Assurance
Costs and Expenses
Waiver
Independent Legal Advice
Authority and Capacity
Third Party Rights
Construction
Infrastructure
Financial Services
Real Estate Development
Mining
Engineering
Manufacturing
Government Contracting
Insurance
Energy
Legal
Finance
Risk Management
Treasury
Compliance
Commercial
Procurement
Project Management
Operations
Corporate Governance
Chief Financial Officer
Risk Manager
Legal Counsel
Contract Manager
Project Director
Commercial Director
Treasury Manager
Company Secretary
Compliance Officer
Finance Director
Insurance Manager
Bond Administrator
Construction Manager
Procurement Manager
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