Common use of Automatic Default Clause in Contracts

Automatic Default. In the event that: (a) any party shall elect to, or be wound up and dissolved; (b) any party shall become insolvent or admit in writing its inability to pay its debts as they mature; (c) any party shall make an assignment for the benefit of creditors; (d) any party shall file a voluntary petition in bankruptcy or for reorganization or be adjudicated as bankrupt or insolvent; (e) any party shall have a liquidator or trustee appointed over its affairs; (f) in the case of AUSA, AUSA shall become insolvent or its surplus shall become impaired as such terms are defined under applicable New York insurance law; or (g) in the case of AUSA, the insurance commissioner of its state of domicile shall commence a delinquency proceeding or apply for a court order of rehabilitation or liquidation, or the insurance commissioner of any other state or jurisdiction shall commence a delinquency proceeding or apply for a court order of conservation or receivership or take other action of a similar nature; then such party shall be in default and the other party to this Agreement may elect to terminate this Agreement immediately upon written notice to the other parties.

Automatic Default. In the event that: (a) any party shall elect to, or be wound up and dissolved; (b) any party shall become insolvent or admit in writing its inability to pay its debts as they mature; (c) any party shall make an assignment for the benefit of creditors; (d) any party shall file a voluntary petition in bankruptcy or for reorganization or be adjudicated as bankrupt or insolvent; (e) any party shall have a liquidator or trustee appointed over its affairs; (f) in the case of AUSAWestern Reserve, AUSA Western Reserve shall become insolvent or its surplus shall become impaired as such terms are defined under applicable New York Ohio insurance law; or (g) in the case of AUSAWestern Reserve, the insurance commissioner of its state of domicile shall commence a delinquency proceeding or apply for a court order of rehabilitation or liquidation, or the insurance commissioner of any other state or jurisdiction shall commence a delinquency proceeding or apply for a court order of conservation or receivership or take other action of a similar nature; then such party shall be in default and the other party to this Agreement may elect to terminate this Agreement immediately upon written notice to the other parties.