PACKAGE HOLIDAYS AND TRAVEL TRADE ACT 1995 (“The Act”)

Terms of Security to be Secured by an Organiser or Trader with an Insurance Undertaking

I/We (name of Insurance Undertaking)

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hereafter referred to as the Surety, having our registered office at

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at the behest of

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of

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(being an organiser, or a trader facilitating linked travel arrangements, under the Act) hereby undertake and acknowledge that I/we are bound to pay to the Commission for Aviation Regulation such sum as the Commission may demand, but not exceeding

€

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(euro)

to be applied in accordance with section 22 or 22A of the Act, as appropriate, for the purposes set out in those sections.

This security shall come into effect on the _______ day of _____________, 20____, and shall cease to have effect after the _______ day of ____________, 20____, and shall be available to the Commission for Aviation Regulation in respect of a package or a linked travel arrangement, as the case may be, regardless of when the package travel contract or linked travel arrangement, was made with the traveller, PROVIDED THAT the Commission shall make any demand under this security not later than 6 months following the expiry date of this security.

Notwithstanding the generality of the foregoing, where this security is replaced by a new security arranged by the organiser or trader facilitating linked travel arrangements, as the case may be, in accordance with section 22 or 22A of the Act, and which complies with section 24 of the Act, the liability of the Surety under this security shall cease on the commencement of such new security.

IT IS AGREED that this money shall become payable upon demand in writing from the Commission for Aviation Regulation in one or more of the following events —

(a) a petition is granted by a court for the compulsory winding up of the business of the organiser or trader;

(b) the organiser or trader by reason of being unable to fulfil its financial obligations, seeks a voluntary winding up of the business or has convened a meeting of the creditors of the organiser or trader, for the purpose of considering a settlement of the liabilities of the organiser or trader to its creditors;

(c) a receiver is appointed over the assets of the organiser or trader;

(d) the organiser or trader has failed to discharge its debts or is unable to discharge those debts or has ceased to carry on business by reason of the inability to discharge those debts;

(e) the organiser or trader has committed an act of bankruptcy;

(f) the Commission for Aviation Regulation has reasonable grounds for believing that, having regard to all the circumstances, the organiser or trader is unable to, or has failed to, carry out the obligations under the Act owed by it to travellers in respect of package travel contracts or linked travel arrangements to which the Act applies.

IT IS FURTHER AGREED that, in circumstances outlined at paragraph (f), the Commission for Aviation Regulation will, before calling for payment under the security, notify the organiser or trader facilitating linked travel arrangements in writing by delivering the notice to the organiser or trader’s principal place of business or registered office in the State, of its proposal to call the security and the reasons for such proposal and shall afford the organiser or trader concerned all reasonable opportunity to make representations to the Commission.

IT IS A CONDITION of this security that the Commission for Aviation Regulation will repay to the Surety such part of the sum advanced as shall not be expended for the benefit of the travellers of the organiser or trader facilitating linked travel arrangements or to defray the reasonable expenses incurred by the Commission under section 24(2) of the Act.

Monies payable under this security shall be applied for all or any of the following purposes —

In respect of an organiser:

- For the refund of travellers in the circumstances referred to in section 22 of the Act.

In respect of a trader facilitating a linked travel arrangement:

- For the refund of travellers in the circumstances referred to in section 22A of the Act.

Without prejudice to any existing right of a traveller to recover compensation under the Act, nothing in this instrument shall be construed as enabling such traveller to recover any such compensation out of any sum of money made available under this security.

Signed FOR AND ON BEHALF OF

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this __________________ day of ____________________ 20____.]