5 escrow default 51 following events shall constitute

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5. Escrow Default 5.1 Following events shall constitute an event of default by the Contractor (an“Escrow Default”) unless such event of default has occurred as a result of Force Majeure or any act or omission of the Government: (a) the Contractor commits breach of this Agreement by failing to deposit any receipts into the Escrow Account as provided herein and fails to cure such breach by depositing the same into the Escrow Account within a Cure Period of 5 (five) Business Days; (b) the Contractor causes the Escrow Bank to transfer funds to any account of the Contractor in breach of the terms of this Agreement and fails to cure such breach by depositing the relevant funds into the Escrow Account in which such transfer should have been made, within a Cure Period of 5 (five) Business Days; or (c) the Contractor commits or causes any other breach of the provisions of this Agreement and fails to cure the same within a Cure Period of 5 (five) Business Days. 5.2 Upon occurrence of an Escrow Default, the consequences thereof shall be dealt with under and in accordance with the provisions of the Contract. 6. Termination of Escrow Agreement 6.1 Duration of the Escrow Agreement This Agreement shall remain in full force and effect so long as any sum remains to be advanced or is outstanding from the Contractor in respect of the Contract, or any of its obligations to the Government remain to be discharged, unless terminated earlier by consent of all the Parties or otherwise in accordance with the provisions of this Agreement. 6.2 Substitution of Escrow Bank The Contractor may, by not less than 45 (forty five) days prior notice to the Escrow Bank and the Government, terminate this Agreement and appoint a new Escrow Bank, provided that the new Escrow Bank is acceptable to the Government and arrangements are made satisfactory to the Government for transfer of amounts deposited in the Escrow Account to a new Escrow Account established with the successor Escrow Bank.The termination of this Agreement shall take effect only upon coming into force of an Escrow Agreement with the substitute Escrow Bank. 6.3 Closure of Escrow Account The Escrow Bank shall, at the request of the Contractor and the Government made on or after
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96 the payment by the Contractor of all outstanding amounts under the Contract including the payments specified in Clause 4.2 (“Withdrawals upon termination”), and upon confirmation of receipt of such payments, close the Escrow Account and pay any amount standing to the credit thereof to the Contractor. Upon closure of the Escrow Account hereunder, the Escrow Agreement shall be deemed to be terminated. 7. Representation and warranties of the Escrow Bank and the Contractor Each of the Escrow Bank and the Contractor represent and warrant that it is duly organized and validly existing under the laws of India with power to enter into this Agreement and to exercise its rights and perform its obligations hereunder and has taken all corporate and other actions required for the execution of this Agreement and the performance of its obligations hereunder.
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  • Winter '14
  • Bijay K Behra
  • Government, Petroleum Operations, Contract Area

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