UBAF BANK LTD LONDON
PLS ISSUE A PERFORMANCE BOND IN ACCORDANCE WITH THE TERMS OF YOUR OFFICIAL TEXT AND H.O. CIRCULAR 164/40/FM DATED 19.1.88 AGAINST OUR COUNTERGUARANTEE (OUR REF. NO. G93/1742) AS FOLLOWING AND TRANSMIT IT TO THE BENEFICIARY: GENERAL ORGANISATION FOR LAND DEVELOPMENT (GOLD), MINISTRY OF IRRIGATION, SYRIAN ARAB REPUBLIC.
QUOTE
PERFORMANCE BOND
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TO: GENERAL ORGANIZATION FOR LAND DEVELOPMENT (GOLD), MINISTRY OF IRRIGATION, SYRIAN ARAB REPUBLIC
L/G NO. ( ) FOR USD8,790,000.00 VALID UNTIL JULY 25TH 1998, 1:00 P.M.
WE INFORM YOU THAT WE HEREBY GUARANTEE SICHUAN MACHINERY AND EQUIPMENT IMPORT AND EXPORT CORP, 27 HONG ZHAO BI STREET, CHENGDU, SICHUAN, P.R. CHINA (HEREINAFTER REFERRED TO AS 'SCMEC'). JOINTLY AND SEVERALLY FOR AN AMOUNT OF USD8,790,000.00 (SAY EIGHT MILLION SEVEN HUNDRED NINETY THOUSAND U.S. DOLLARS ONLY).
IN RESPECT OF GOOD EXECUTION OF THE CONTRACT NO. 627/92 OF THE TISHRIN DAM HYDROPOWER PLANT AND EQUIPMENT OF 6X105MW WHICH IS THE SUBJECT OF THE TENDER NO. 917/D/3 DATED JULY 22ND, 1991 ISSUED BY GOLD (HEREINAFTER REFERRED TO AS THE 'CONTRACT'). THIS GUARANTEE IS VALID AND OPERATIVE FROM THE DATE WHEN SCMEC RECEIVES THE LETTER OF CREDIT UNDER THE CONTRACT AND SHALL REMAIN VALID UNTIL JULY 25th, 1998, 1:00 P.M. AND CANNOT BE CANCELLED DURING ITS VALIDITY WITHOUT YOUR WRITTEN CONSENT.
WE UNDERTAKE TO PAY TO YOUR ORDER THE ABOVE MENTIONED AMOUNT OR ANY PART THEREOF OWING TO BREACH OF NON-COMPLIANCE BY THE GUARANTEED PARTY (SCMEC) WITH ANY OF THE OBLIGATIONS INCUMBENT ACCORDING TO THE CONTRACT TERMS UPON YOUR SIMPLE DEMAND BY TESTED TELEX OR LETTER WHICH SHOULD BE DELIVERED AND REACH US OFFICIALLY DURING ITS VALIDITY LATEST ON JULY 25TH, 1998, 1:00 P.M.
AUTOMATICALLY THEREAFTER OUR OBLIGATION UNDER THIS GUARANTEE WILL CEASE WITHOUT NEED FOR WARNING OR ANY OTHER PROCEDURE, AND ALL CLAIMS RECEIVED WILL BE IGNORED AND WILL BE CONSIDERED CANCELLED UNLESS WE PROCEED TO EXTEND OR RENEW IT IN WRITING.
WE DECLARE THAT THAT THIS PERFORMANCE BOND IS SUBJECT TO SYRIAN LAWS AND REGULATIONS AND WE CHOOSE THE FOLLOWING ADDRESS AS OUR DOMICILE IN ALL THAT CONCERNS THE EXECUTION OF THIS GUARANTEE:
THE COMMERCIAL BANK OF SYRIA, BRANCH NO. 6, SYRIAN ARAB REPUBLIC.
UNQUOTE"
There then follows set out in the telex immediately below the terms of the BACB counter-guarantee to CBS:
"IN CONSIDERING OF YOUR ISSUING THE ABOVE MENTIONED PERFORMANCE BOND, WE, UBAF BANK LIMITED LONDON, HEREBY UNDERTAKE TO PAY TO YOUR ORDER UPON YOUR SIMPLE DEMAND BY TESTED TELEX OR LETTER ANY AMOUNT UP TO FULL AMOUNT OF THIS GUARANTEE INCLUDING THE COMMISSIONS INTERESTS AND EXPENSES IN FOREIGN CONVERTIBLE CURRENCIES AT RATES RULING AT YOUR BANK PROVIDED YOU RECEIVE SUCH CLAIM(S) FROM BENEFICIARY ON OR BEFORE JULY 25TH, 1998, 1:00 P.M. AND THIS CLAIM(S) MUST REACH US SOONEST THEREAFTER. OUR COUNTERGUARANTEE TO YOU WILL AUTOMATICALLY BECOME ENFORCEABLE WHEN YOUR A/M PERFORMANCE