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Bond Indemnity Agreement Template for Netherlands

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Key Requirements PROMPT example:

Bond Indemnity Agreement

"I need a Bond Indemnity Agreement under Dutch law for our construction company (as indemnifier) to secure a performance bond from ABN AMRO Bank for a major infrastructure project in Rotterdam, with multiple project-specific indemnifiers and parent company guarantee."

Document background
The Bond Indemnity Agreement is a crucial document in commercial and financial transactions under Dutch law, typically required when a company or individual needs to obtain bonds or guarantees from a surety company. This agreement serves as the surety's primary protection against potential losses, establishing the indemnifier's obligation to reimburse the surety for any claims, losses, or expenses incurred in connection with the issued bonds. The document is particularly common in construction, infrastructure, and international trade sectors where performance bonds, bid bonds, or other guarantees are required. The agreement must comply with Dutch legal requirements, particularly the provisions of the Dutch Civil Code regarding security rights and financial obligations. It typically includes detailed procedures for claims, continuing security arrangements, and may involve multiple parties such as parent companies or additional guarantors.
Suggested Sections

1. Parties: Identification of the Indemnifier(s) and the Bond Issuer/Surety

2. Background: Context of the agreement, including reference to the underlying bond(s) and primary obligation

3. Definitions: Definitions of key terms including Bond, Principal Obligation, Claims, Loss, etc.

4. Indemnity: Core indemnification obligations, scope of coverage, and trigger events

5. Payment Terms: Terms and timing of indemnity payments, including currency and method

6. Claims Procedure: Process for making claims under the indemnity, including notice requirements

7. Representations and Warranties: Standard representations about capacity, authority, and financial condition

8. Continuing Security: Establishment of the indemnity as continuing security until discharge

9. Costs and Expenses: Responsibility for costs related to enforcement and claims

10. Term and Termination: Duration of the indemnity and conditions for termination

11. Governing Law and Jurisdiction: Specification of Dutch law and jurisdiction for disputes

Optional Sections

1. Multiple Indemnifiers: Required when there is more than one indemnifier, establishing joint and several liability

2. Collateral Security: Include when specific assets are pledged as additional security

3. Counter-Indemnities: Required when there are back-to-back indemnity arrangements

4. Currency Provisions: Include for cross-border transactions involving multiple currencies

5. Tax Gross-Up: Include when payments may be subject to withholding tax

6. Financial Covenants: Include when ongoing financial requirements are imposed on the indemnifier

7. Assignment and Transfer: Include when transfer rights need to be specifically addressed

Suggested Schedules

1. Schedule 1 - The Bond(s): Details of the bond(s) covered by the indemnity, including amount, beneficiary, and purpose

2. Schedule 2 - Form of Demand: Standard form for making claims under the indemnity

3. Schedule 3 - Claims Documentation: List of required supporting documents for claims

4. Schedule 4 - Notice Details: Contact information and procedures for serving notices

5. Schedule 5 - Collateral (if applicable): Description of any collateral security provided

6. Appendix A - Power of Attorney: Standard form of power of attorney if required for enforcement

7. Appendix B - Compliance Certificate: Form for periodic compliance certification if required

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































Clauses






























Relevant Industries

Construction

Infrastructure

Real Estate Development

Financial Services

Insurance

Mining

Oil & Gas

Manufacturing

Government Contracting

International Trade

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Commercial

Project Management

Business Development

Corporate Secretariat

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Contract Manager

Risk Manager

Treasury Manager

Company Secretary

Commercial Director

Project Manager

Compliance Officer

Bond Manager

Security Trustee

Financial Controller

General Counsel

Business Development Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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