Common use of Faithful Performance Bond Clause in Contracts

Faithful Performance Bond. At the time of making written application under this Agreement, Licensee may be required by Licensor to furnish Licensor with a bond to cover the faithful performance by Licensee of its obligations to make the payments provided for in paragraphs 8, 15, 17, 20, 22 and 23 hereof; to pay the premiums for the insurance provided for in paragraph 24 hereof; and to remove or to pay for the removal of its equipment from said Outside Plant, or any of them, if this Agreement should be terminated in whole or in part pursuant to Paragraph 27 or Paragraph 34 hereof. Licensor may require such bond only if Licensee does not maintain at least an investment grade (e.g., B+ or higher) debt or credit rating as determined by a nationally recognized debt or credit rating agency such as Xxxxx’x, Standard and Poor’s or Duff and Xxxxxx and have liquid assets of at least $3,000,000 as demonstrated by the most recent year-end financial statement. Such bond shall be issued by a commercial bonding company selected by Licensee and satisfactory to Licensor; shall not be subject to termination or cancellation except upon thirty (30) days prior written notice of cancellation thereof or material change thereto by certified mail to Licensor; shall be in such form and in such amount as Licensor shall reasonably specify from time to time; and, subject to termination or cancellation as aforesaid, shall be maintained in full force and effect in the amounts and for the period or periods required by Licensor, including reinstatement thereof at any time throughout the life of this Agreement.

Faithful Performance Bond. At the time of making written application under this Agreement, Licensee may be required by Licensor to furnish Licensor with a bond to cover the faithful performance by Licensee of its obligations to make the payments provided for in paragraphs 8, 15, 17, 20, 22 and 23 hereof; to pay the premiums for the insurance provided for in paragraph 24 hereof; and to remove or to pay for the removal of its equipment from said Outside Plant, or any of them, if this Agreement should be terminated in whole or in part pursuant to Paragraph 27 or Paragraph 34 hereof. Licensor may require such bond only if Licensee does not maintain at least an investment grade (e.g., B+ or higher) debt or credit rating as determined by a nationally recognized debt or credit rating agency such as Xxxxx’xMoody’s, Standard and Poor’s or Duff and Xxxxxx and have liquid assets of at least $3,000,000 as demonstrated by the most recent year-end financial statement. Such bond shall be issued by a commercial bonding company selected by Licensee and satisfactory to Licensor; shall not be subject to termination or cancellation except upon thirty (30) days prior written notice of cancellation thereof or material change thereto by certified mail to Licensor; shall be in such form and in such amount as Licensor shall reasonably specify from time to time; and, subject to termination or cancellation as aforesaid, shall be maintained in full force and effect in the amounts and for the period or periods required by Licensor, including reinstatement thereof at any time throughout the life of this Agreement.