Common use of Credit Assurances Clause in Contracts

Credit Assurances. If Buyer has reasonable grounds to believe that Seller’s creditworthiness or performance under this Agreement has become unsatisfactory, Buyer will provide Seller with written notice requesting Performance Assurance in an amount determined by Buyer in a commercially reasonable manner. Upon receipt of such notice Seller shall have three (3) Business Days to remedy the situation by providing such Performance Assurance to Buyer. In the event that Seller fails to provide such Performance Assurance, or a guaranty or other credit assurance acceptable to Buyer within three (3) Business Days of receipt of notice, then an Event of Default under Article Five will be deemed to have occurred and Buyer will be entitled to the remedies set forth in Article Five of this Agreement.

Credit Assurances. If Buyer Seller has reasonable grounds to believe that SellerBuyer’s creditworthiness or performance under this Agreement has become unsatisfactory, Buyer Seller will provide Seller Buyer with written notice requesting Performance Assurance in an amount determined by Buyer Seller in a commercially reasonable manner. Upon receipt of such notice Seller Buyer shall have three (3) Business Days to remedy the situation by providing such Performance Assurance to BuyerSeller. In the event that Seller Buyer fails to provide such Performance Assurance, or a guaranty or other credit assurance acceptable to Buyer Seller within three (3) Business Days of receipt of notice, then an Event of Default under Article Five will be deemed to have occurred and Buyer Seller will be entitled to the remedies set forth in Article Five of this Agreement.