Failure to Invest Clause Samples
The "Failure to Invest" clause defines the consequences and procedures that apply if a party does not fulfill its agreed-upon investment obligations under a contract. Typically, this clause outlines what constitutes a failure to invest, such as missing a scheduled capital contribution or not providing required funding by a certain deadline, and may specify remedies like loss of rights, penalties, or dilution of ownership. Its core practical function is to ensure accountability and protect the interests of the other parties by providing clear recourse if an investment commitment is not met.
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Failure to Invest. Failure to fulfill the investment obligations, in full or in part, shall give the right to the Agency to claim penalties in the amount of 120% (hundred and twenty percent) of the amount that the Buyer has failed to invest, in accordance with the provisions on the Investment Obligation. The penalties shall be payable at the end of every year of the Investment period during which the Buyer has failed to fulfill its investment obligations. Payment of penalties related to the invest failure within the agreed time period (as per Business Plan) shall be effected within two months after setting the date for payment.
Failure to Invest. Failure to invest the Port Initial Capital Expenditure Obligation and/or Initial Second Amendment Payment Warehouse Capital Obligation and/or failure to invest the Total Capital Expenditure Obligation and/or Minimum Warehouse Capital Obligation;
Failure to Invest