FINANCIAL RESPONSIBILITY99100 Clause Samples

FINANCIAL RESPONSIBILITY99100. 10.1. 101If either party (“X”) has reasonable grounds102 for insecurity regarding the performance of any payment103104105 106107108109obligation under this Contract (whether or not then due) by the other party (“Y”) (including, without limitation, the occurrence of a material change in the creditworthiness of Y), X may demand Adequate Assurance of Performance. “Adequate Assurance of Performance” shall mean sufficient security in the form, amount and for the term reasonably specified by110 X, including, but not limited to, a standby irrevocable letter of credit111, a prepayment, a security interest in an asset acceptable to X or a performance bond or guarantee by a creditworthy entity112113.114 97 AIG [8b] notices sent by facsimile should be deemed received on the date that transmission is received by a responsible employee of the recipient in legible form.