Delay in Startup Sample Clauses
The Delay in Startup clause defines the terms and conditions under which compensation or remedies are provided if a project or business fails to commence operations by an agreed-upon date. Typically, this clause outlines the circumstances that constitute a delay, the calculation of damages or penalties, and any exceptions such as force majeure events. Its core practical function is to allocate risk between parties by ensuring that the party responsible for the delay is held accountable, thereby incentivizing timely project completion and protecting the interests of the party expecting the startup.
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Delay in Startup. Delay in startup insurance, on an “all risks” basis including testing, commissioning and startup (machinery breakdown and electrical injury) coverage, during the construction period with limits of not less than 12 months of projected revenues less non-continuing expenses, with the 12 months indemnification period being exclusive of the deductible waiting period. The deductible or waiting period shall not exceed thirty (30) days from the planned Final Completion Date. Borrower shall also maintain or cause to be maintained contingent delay in startup as respects an insured loss at either facility of any single supplier or customer which would significantly delay the Project’s completion or going into operation.
Delay in Startup. (A) During the Construction Period and as part of the Builders All Risk policy, and until the Final Completion Date, the Parent and/or each Co-Borrower shall maintain or cause to be maintained, delay in startup insurance following all perils required to be insured above under the Builder’s All-Risk insurance, including mechanical or electrical breakdown, inland transit and off-Project site storage perils, with per occurrence limits (other than for the perils subject to an aggregated sublimit) in an amount required by the Lender (to the extent such coverage is available on commercially reasonable terms). Such policies shall include sums adequate to cover the debt service payments of each Co-Borrower (taking into account any insurance proceeds receivable by the Parent and/or the Co-Borrower with respect to losses to the Project and the fixed/ continuing expenses with a 12 month indemnification period). If coverage is subject to an 7257764v.2 indemnification period, such period shall not be less than the greater of 12 months, or the maximum time period it would take to remanufacture, reship and reinstall the subject equipment.
(B) First tier contingent delay in startup coverage shall also be included with a limit for the contingent exposure of an indemnification period of 12 months, on terms and conditions reasonably acceptable to the Lender to the extent such coverage is available on commercially reasonably terms. This coverage shall not include any annual or term aggregate limits of liability, except to the extent that Parent and/or a Co-Borrower has reported monthly values to the insurer. The deductible or waiting period shall not exceed 45 days on a per occurrence basis.
Delay in Startup. The Borrower shall maintain, or cause to be maintained, with respect to each Project, delay in startup insurance following all perils required to be insured above under Section 1.2(a), including without limitation mechanical or electrical breakdown, inland transit and off-site storage perils (whether covered under the Builders All-Risk policy or a separate policy), with limits of not less than the projected equivalent twelve (12) months gross revenues (including all revenues derived from the sale of any Environmental Credits that are owned or sold by a Project Company), less non-continuing expenses or such other amount approved by the Administrative Agent. If coverage is subject to an indemnification period, such period shall not be less than twelve (12) months unless otherwise approved by the Administrative Agent. Contingent delay in startup coverage shall also be included with respect to key customers and damage to the electrical interconnections and pipeline lateral interconnections with covered perils acceptable to the Administrative Agent and limits and indemnity period not less than ninety (90) days. The deductible or waiting period shall not exceed forty-five (45) days on a per occurrence basis or other deductibles approved by the Administrative Agent. In the event that a Project becomes operational prior to Substantial Completion and is moved to the Operational “All-Risk” Property policy required in (c) below, the delay in startup cover shall be converted to business interruption insurance
Delay in Startup. From the date of the initial Borrowing Notice, delay in startup insurance, on an “all risks” basis (as such term is used in common practice of the insurance industry on the date of this Agreement) including operational testing, and startup (machinery breakdown and electrical injury) coverage, during the construction period with limits of no less than twelve (12) months of projected scheduled debt service requirements and continuing expenses with the twelve (12) month indemnification period being exclusive of the deductible waiting period. The deductible or waiting period shall not exceed thirty (30) days from the planned Final Completion Date. This coverage shall not include any annual or term aggregate limits of liability or clause requiring the payment of additional premium to reinstate the limits after loss except with regards to the insurance applicable to the perils of flood and earth movement.