Common use of Insolvency of Contractor Clause in Contracts

Insolvency of Contractor. It is recognized that if the Contractor is adjudged a bankrupt, makes a general assignment for the benefit of creditors, or if a receiver is appointed for the benefit of creditors on account of the Contractor's insolvency, such circumstance could impair or frustrate the Contractor's performance of this Contract. Accordingly, the parties to this Contract agree that upon the occurrence of any such event, the City shall be entitled to request of the Contractor or its successor in interest adequate assurances of future performance in accordance with the terms and conditions of the Contract Documents and the Contractor shall have seven (7) business days to provide such assurances. The Contractor's failure to comply with such request shall entitle the City to terminate this Contract immediately and to the accompanying rights thereunder.

Insolvency of Contractor. It is recognized that if the Contractor is adjudged a as bankrupt, makes a general assignment for the benefit of creditors, or if a receiver is appointed for the benefit of creditors on account of the Contractor's insolvency, such circumstance could impair or frustrate the Contractor's performance of this Contract. Accordingly, the parties to this Contract agree that upon the occurrence of any such event, the City shall be entitled to request of the Contractor or its successor in interest adequate assurances of future performance in accordance with the terms and conditions of the Contract Documents and the Contractor shall have seven (7) business days to provide such assurances. The Contractor's failure to comply with such request shall entitle the City to terminate this Contract immediately and to the accompanying rights thereunder.