Bona Fide Exchanges Permitted Clause Samples
The "Bona Fide Exchanges Permitted" clause allows parties to transfer or exchange their rights or obligations under the agreement, provided the exchange is genuine and conducted in good faith. In practice, this means a party may assign its interests to another entity, such as in a merger or sale, as long as the transaction is not a sham or designed to circumvent the contract's intent. This clause ensures flexibility for parties to adapt to business changes while maintaining the integrity of the agreement and preventing fraudulent or manipulative transfers.
Bona Fide Exchanges Permitted. Nothing in this article shall be deemed to prevent the Agency from entering into bona fide exchanges of project water for use outside the Agency’s service area with other parties for project water or nonproject water if the State consents to the use of the project water outside the Agency’s service area. Also, nothing in this article shall be deemed to prevent the Agency from continuing those exchange or sale arrangements entered into prior to September 1, 1995, which had previously received any required State approvals. A “bona fide exchange” shall mean an exchange of water involving a contractor and another party where the primary consideration for one party furnishing water to another is the return of a substantially similar amount of water, after giving due consideration to the timing or other nonfinancial conditions of the return. Reasonable payment for costs incurred in effectuating the exchange and reasonable deductions from water delivered, based on expected storage or transportation losses may be made. A “bona fide exchange” shall not include a transfer of water from one contractor to another party involving a significant payment unrelated to costs incurred in effectuating the exchange. The State, in consultation with the contractors, shall have authority to determine whether transfers of water constitute “bona fide exchanges” within the meaning of this paragraph and not disguised sales.
Bona Fide Exchanges Permitted. Nothing in this article shall be deemed to prevent the Agency from entering into bona fide exchanges of project water for use outside the Agency’s service area with other parties for project water or nonproject water if the State consents to the use of the project water outside the Agency’s service area. Also, nothing in this article shall be deemed to prevent the Agency from continuing those exchange or sale arrangements entered into prior to September 1, 1995, which
Bona Fide Exchanges Permitted. Notwithstanding the provisions of Article 15(a), the State hereby consents to the Agency exchanging project water outside its service area consistent with this Article. Nothing in this article shall prevent the Agency from entering into bona fide exchanges of project water for use outside the Agency’s service area with other parties for project water or nonproject water if the State consents to the use of the project water outside the Agency’s service area. Also,
Bona Fide Exchanges Permitted. Notwithstanding the provisions of Article 15(a), the State hereby consents to the Agency exchanging Project Water outside its service area consistent with this Article. Nothing in this Article shall prevent the Agency from entering into bona fide exchanges of Project Water for use outside the Agency’s service area with other parties for Project Water or Nonproject Water if the State consents to the use of the Project Water outside the Agency’s service area. Also, nothing in this Article shall prevent the Agency from continuing those exchange or sale arrangements entered into prior to September 1, 1995. Nothing in this Article shall prevent the Agency from continuing those exchange or sale arrangements entered into prior to the effective date of this Amendment which had previously received any required State approvals. The State recognizes that the hydrology in any given year is an important factor in exchanges. A “