The Deposit Bond - Sample
At the request of [Name of Purchaser] (the purchaser) and in consideration of [Name of Vendor] (the Vendor) accepting this undertaking in respect of the Contract of Sale between the Vendor(s) and Purchaser(s) for the property at [Full Address of Property], for a full purchase price of (Purchase price in words and figures) QBE Insurance (Australia) Limited ABN 18 090 935 765("the Financial Institution") undertakes to pay on demand, subject to the conditions set out below, any sum or sums which may be demanded by the Vendor to a maximum aggregate sum of [Bond Amount in Words and Figures] (The Bond Amount).
The Financial Institution will make payment, should it receive from the Vendor:
- a copy of a notice of termination or recision of the Contract of Sale served by the Vendor on the Purchaser entitling the Vendor to recover the Deposit in accordance with the terms and conditions of the Contract of Sale and
- a statement in writing that the Deposit has not been paid to the Vendor by the Purchaser in accordance with the terms of the Contract of Sale and
- a written demand for the outstanding amount
It is agreed that the Financial Institution will make payment or payments to the Vendor forthwith without reference to the Purchaser and notwithstanding any notice given by the Purchaser not to pay same.
This undertaking is to continue until:
- the Contract of Sale being completed or
- the expiry date detailed below or
- the Contract of Sale being terminated or rescinded and the purchaser is entitled to a refund of the deposit or
- payment to the Vendor by the Financial Institution of the whole of the sum or such part as the Vendor may require.
This Bond expires at 4.00pm on the ______the Day of ______________200[ ](The Expiry Date).
Signed on behalf of QBE Insurance (Australia) Limited by its authorised agent Deposit Bond Australia Pty Ltd
Dated at Sydney this [ ] day of [ ], 200[ ]