Utility Default Clause Samples
The Utility Default clause defines the consequences and procedures that apply if a utility provider fails to meet its contractual obligations. Typically, this clause outlines what constitutes a default, such as non-delivery of services or persistent service interruptions, and specifies the remedies available to the non-defaulting party, which may include the right to terminate the agreement or seek damages. Its core practical function is to allocate risk and provide a clear framework for addressing failures in utility service, thereby protecting the interests of the party relying on those services.
Utility Default. If a Utility Event of Default has occurred and the Utility Event of Default has not been cured within the period specified in Paragraph 10.3, Developer, in its sole discretion, may take any or all of the following actions:
(a) terminate this Agreement by delivering written notice to Utility (Developer Termination Notice) or
(b) proceed in accordance with Paragraph 14 (Resolution of Disputes) to protect and enforce its rights and to recover any damages to which it may be entitled, including all costs and expenses reasonably incurred in the exercise of its remedy, or
(c) at its election, take such steps as are reasonably necessary to cure the default before so proceeding.
Utility Default. The Government and Utility agree that Utility default provisions will be governed by those FAR clauses applicable to specific circumstances. A determination of applicable FAR default clauses will be made by the Contracting Officer for a specific T.O. WR.5 Prompt Payment. As required in FAR, Part 32, Subpart 32.903, the Government shall promptly pay ECM utility bills. Late payments shall accrue interest as provided in FAR, Part 32, Subpart 32.907.
Utility Default. If a Utility Event of Default has occurred and the Utility Event of Default has not been cured within the period specified in Paragraph 10.3, Developer, in its sole discretion, may take any or all of the following actions:
(a) terminate this Agreement by delivering written notice to Utility (Developer Termination Notice) or remedy, or
Utility Default. (A) The existence of any of the following material default conditions (“Utility Default Conditions”) may result in a Utility Default:
(1) Utility fails to comply with a material obligation of Utility under this Agreement;
(2) Utility is more than twenty (20) days overdue respecting payments due to SJCC under this Agreement and no written notification of dispute is provided regarding the payment in question;
(3) Utility files a petition or otherwise commences, authorizes or acquiesces in any cause or action under any bankruptcy or similar law for the protection of creditors or has a petition filed against it;
(4) Utility makes an assignment or any general arrangement for the benefit of creditors;
(5) Utility is unable to pay its debts as they fall due;
(6) A receiver or receiver-manager is appointed for the business, property, affairs or revenues of Utility; or
(7) Termination of either the Reclamation Services Agreement or the CCR Disposal Agreement by SJCC due to a “Utility Event of Default” thereunder (as such term is used in each agreement, respectively).
(B) Utility Default exists when (i) the Utility Default Condition in Section 12.4(A)(7) occurs, or (ii) any one of the Utility Default Condition in Sections 12.4(A)(1) - (6) occurs and:
(1) Notice is provided pursuant to Section 12.4(C), and
(2) Utility fails to avoid Utility Default under Section 12.4(D).
Utility Default