Adequate Assurance of Performance definition

Adequate Assurance of Performance has the meaning given to it in Section 10.3.

Adequate Assurance of Performance means sufficient security in the form, amount and for the term reasonably acceptable to X, including, but not limited to, a standby irrevocable letter of credit, a prepayment, a security interest in an asset or a performance bond or guaranty (including the issuer of any such security).

Adequate Assurance of Performance means sufficient security in the form, amount, for a term, and from an issuer, all as reasonably acceptable to X, including, but not limited to cash, a standby irrevocable letter of credit, a prepayment, a security interest in an asset or guaranty. Y hereby grants to X a continuing first priority security interest in, lien on, and right of setoff against all Adequate Assurance of Performance in the form of cash transferred by Y to X pursuant to this Section 10.1. Upon the return by X to Y of such Adequate Assurance of Performance, the security interest and lien granted hereunder on that Adequate Assurance of Performance shall be released automatically and, to the extent possible, without any further action by either party.

Examples of Adequate Assurance of Performance in a sentence

• Capitalized terms used, but not otherwise defined, in this Agreement shall have the respective meanings given to such terms set forth below: Adequate Assurance of Performance.

• If (i) Producers fail to pay according to the provisions hereof and such failure continues for a period of 5 Business Days after Notice of such failure is provided to Producers or (ii) Gatherer has reasonable grounds for insecurity regarding the performance by Producers of any obligation under this Agreement, then Gatherer, by Notice to Producers, may, singularly or in combination with any other rights it may have, demand Adequate Assurance of Performance by Producers.

• A demand by a Party seeking Adequate Assurance of Performance shall be in writing and shall include an explanation in reasonable detail of the calculation of the Adequate Assurance of Performance demand.

• If the Parties cannot resolve such concerns, Seller may request that Buyer provide Adequate Assurance of Performance (as defined below) and if Buyer fails to provide such Adequate Assurance of Performance within five Business Days of receipt of request therefor, Seller may, without waiving any other rights or remedies available to it under this Agreement or now or hereafter existing at Law or in equity, withhold further deliveries until the demanded Adequate Assurance of Performance is received.

• If either Party has reasonable grounds for insecurity regarding the performance of any payment obligation under this Agreement (whether or not then due) by the other Party or that other Party’s guarantor, if any, including, without limitation, the occurrence of a material adverse change in the creditworthiness of the other Party, a Party may demand Adequate Assurance of Performance.

More Definitions of Adequate Assurance of Performance

Adequate Assurance of Performance means sufficient security in the form, amount, for a term and from an issuer, all as reasonably acceptable to the party demanding the same, including, but not limited to, cash, an irrevocable standby letter of credit issued by a Qualified Institution, a prepayment, a Guaranty or a security interest in an asset.

Adequate Assurance of Performance means, at the option of Producer, any of the following, (x) advance payment in cash by Producer to Midstream Co for Services to be provided under this Agreement in the following Month or (y) delivery to Midstream Co by Producer of an irrevocable standby letter of credit or a performance bond, in form and substance reasonably acceptable to Midstream Co, issued by a Credit-Worthy Person, in an amount equal to not less than the aggregate proceeds due from Producer under Section 10.1 for the prior 2-Month period. Promptly following the termination of the condition giving rise to Midstream Co’s reasonable grounds for insecurity or payment in full of amounts outstanding, as applicable, Midstream Co shall release to Producer the cash, letter of credit, bond or other assurance provided by Producer (including any accumulated interest, if applicable, and less any amounts actually applied to cover Producer’s obligations hereunder).

Adequate Assurance of Performance means any of the following, in Gatherer’s reasonable discretion:

Adequate Assurance of Performance shall have the meaning set forth in Section 6.5(d).

Adequate Assurance of Performance means any of the following, as selected in Producer’s discretion subject to the below:

Adequate Assurance of Performance means sufficient security in a form, amount, for a term and from an issuer, all as reasonably acceptable to Carrier, including but not limited to, cash, prepayment, a standby irrevocable letter of credit or a guaranty.

Adequate Assurance of Performance means: (i) at the option of the party providing the Adequate Assurance, either (a) an irrevocable stand-by letter of credit in a form and for a commercially-reasonable amount acceptable to the Secured Party issued or confirmed by a Qualified Institution acceptable to the Secured Party, or (b) cash in a commercially-reasonable amount acceptable to the Secured Party; or (ii) another form of assurance mutually agreed by the parties;