Bank Guarantee/Deposit Bond

1. The Buyer shall be deemed to have complied with the requirements concerning payment of the Deposit or part of the Deposit (as the case may be) where the Buyer tenders to the Stakeholder an unconditional Bank Guarantee or Deposit Bond which satisfies the following requirements:
(a) the form of the Bank Guarantee or Deposit Bond is acceptable to the Seller, providing the Seller shall not object to the bond only because it is issued in electronic form ; and
(b) the value of the Bank Guarantee or Deposit Bond is equal to the amount of the Deposit (or part thereof) due and payable; and
(c) The Bank Guarantee or Deposit Bond is drawn in favour of the Stakeholder.
2. Should the Buyer commit a default the Stakeholder is authorised to present the Bank Guarantee or Deposit Bond for payment and to deal with the monies as if they were Deposit monies paid in accordance with the Contract.
3. On completion, if there is no default on the part of the Buyer, the Seller shall return the Bank Guarantee or Deposit Bond to the Buyer in which event the Buyer shall be obliged to pay the full Purchase Price without deduction for Deposit.

Deposit To Be Released Prior to Settlement:

Both the Buyer and the Seller agree that [$INSERT] of the deposit in this matter will be released to the seller prior to settlement after [DATE/condition is satisfied/is unconditional with respect to finance and buyer’s inspections] at the direction the parties’ solicitors and on the following terms:
The parties do not intend to for this contract to take on any of the features of an Instalment Contract, and therefore the amount of the deposit (including any additional deposit) released under this Special Condition remains refundable to the Buyer in all circumstances in which it would have been required to be refunded to the Buyer if not for this special condition;
If, after its release, the deposit (including any additional deposit) becomes refundable to the Buyer, the Seller will, from the date on which the Buyer gives a valid notice to refund the deposit, be allowed [30/90/120] days in which to refund the deposit (including any additional deposit) to the Buyer as a single payment or otherwise and no interest can be charged by the Buyer on this amount;
To avoid doubt, the deposit (including any additional deposit) in all cases remains payable:
To the Buyer in the event of the Seller’s breach of contract; and
To the Seller in the event of the Buyer’s breach of contract;
If for any reason, it is unlawful for the deposit holder to release funds from the deposit, the Buyer agrees to pay an additional deposit of [$INSERT] directly to the Seller.
The buyer understands that this may cause the total amount of the deposit to be [$INSERT – original deposit amounts + additional deposit amount (which must not exceed 10% of the purchase price)].