SECURITY DEPOSIT

           Security Deposit may be submitted in the form of D.D. or in the form of Bank Guarantee. Bank Guarantee should be of  the State bank of India or other scheduled bank Bank guarantee will attract stamp duty as per Mumbai stamp act 1958. The format of Bank guarantee is as below.

  Guarantee Bond

             In consideration of the Governor of Maharashtra (hereinafter called "the Government") having agreed to exempt....(Name of the Firm)......(hereinafter called "the said Contractor (s) ") from the demand, under the terms and conditions of an agreement dated......................made between.. The Director, Directorate of Technical Education M.S. ,3, Mahapalika Marg , Mumbai-400 001.  and .....(Name of the Firm).......... (hereinafter called "the said Agreement") ,of security  deposit for the due fulfillment  by the said contractor(s) of the terms and conditions contained in the said Agreement ,on production of a Bank Guarantee for  Rs..............................................(Rupees....................................

........................................................................................Only) We, ..........(Name of Bank)..............Bank, Ltd., Further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the performance of the said Agreement and that it shall continue to be enforceable till all the dues of the Government under or by virtue of the said Agreement have been fully paid and its claims satisfied or discharged or  till 18 months certifies that the terms and conditions of the said Agreement have been fully and properly carried out by the said Contractor (s) and accordingly discharges the guarantee, subject , however , that the Government shall have no right under this bond after expiry of 18 months from  the date of its execution. 

We .....(Name of the Firm).........  Bank ,Ltd. , lastly undertake not to revoke this guarantee during its currency except with previous consent of the Government in writing.

Dated the ...(Date)......... day of .....(Month)................       2000 for ..........(Name of Bank) .......................Bank, Limited.