Common use of Financial Assurance Clause in Contracts

Financial Assurance. If Client admits in writing its inability to pay its debts as they become due, makes a general assignment for the benefit of its creditors, institutes or agrees to the institution of proceedings in bankruptcy or insolvency, or is the subject of a court order relating thereto, or if Laboratory in good faith determines that Client may not be able to timely pay for Services performed under the Agreement, Laboratory may refuse to perform additional Services until Client delivers adequate financial assurance to Laboratory, which may include advance cash payment, a guarantee from a creditworthy entity acceptable to Laboratory, or a letter of credit from a nationally recognized financial institution.

Financial Assurance. If Client admits in writing its inability to pay its debts as they become due, makes a general assignment for the benefit of its creditors, institutes or agrees to the institution of proceedings in bankruptcy or insolvency, or is the subject of a court order relating thereto, or if Laboratory in good faith determines that Client may not be able to timely pay for Services performed under the this Agreement, Laboratory may refuse to perform additional Services until Client delivers adequate financial assurance to Laboratory, which may include advance cash payment, a guarantee from a creditworthy entity acceptable to Laboratory, or a letter of credit from a nationally recognized financial institution.