9.3 - Payment Guaranty.
In the event Purchaser has no guaranty disclaimer granted by Seller, Seller may demand from Purchaser to guarantee payment of supplied Product pursuant to this Agreement through letters of credit, granting of a suretyship or any other manner of Payment Guaranty as selected by Seller. The letter of credit or suretyship shall be (i) issued by a bank o a bonding company legally authorized to operate in the Mexican Republic, as applicable, acceptable to Seller, (ii) in an unconditional and irrevocable manner, (iii) for a term acceptable to Seller, (iv) payable based on a first out-of-court demand by Seller to issuer, notwithstanding any opposition by Purchaser; and (v) in an amount reasonably determined by Seller. In the event Seller demands Purchaser to guarantee Product payment in accordance with aforementioned, and Purchaser shall fail to do so within five (5) Days following the date of demand, Seller may terminate this Agreement and termination shall become immediately effective (without needing a court order), through personal notice to Purchaser. Payment guaranties shall be issued pursuant to suretyship and letter of credit models delivered therefor by Seller.
Payment Guaranty shall be delivered directly to Seller by guarantor institution no later than two business days before first day of product delivery, and including therein full address for guaranty delivery.
In any case, and to remain in payment on credit plan, Purchaser shall maintain Payment Guaranty by making any required renewals or substitutions, otherwise, Seller shall proceed to suspend deliveries or product sale on credit.
If Purchaser chooses to submit a letter of credit and in order for Seller to deem it valid, Purchaser shall renew or substitute it for another with any applicable term, at least sixty Days before its due day.
Whenever Purchaser changes corporate name or is transformed, or merged into o spun-off, Purchaser shall update any applicable Payment Guaranty.