Financial Performance Guarantee Clause Samples
A Financial Performance Guarantee is a contractual provision that ensures one party will meet specific financial obligations or performance targets outlined in the agreement. Typically, this clause requires a guarantor—often a parent company or financial institution—to step in and fulfill payment or performance commitments if the primary party fails to do so. By providing a financial backstop, the clause protects the beneficiary from losses due to non-performance or default, thereby reducing financial risk and increasing confidence in the transaction.
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Financial Performance Guarantee. If capitation is prepaid, Contractor shall provide satisfactory evidence of and maintain Financial Performance Guarantee in an amount equal to at least one month’s capitation payment, in a manner specified by DHS. At Contractor’s request and with DHS approval, Contractor may establish a phase-in schedule to accumulate the required Financial Performance Guarantee. The Financial Performance Guarantee will remain in effect for at least 90 calendar days following termination or expiration of this Contract or until, in the judgment of DHS the obligations set forth in this Contract are fulfilled. If Contractor elects to receive capitation on a postpaid basis, the requirement for the Financial Performance Guarantee will be considered satisfied by the DHS.
Financial Performance Guarantee. Contractor shall provide satisfactory evidence of, and maintain Financial Performance Guarantee in, an amount equal to at least one month’s capitation payment, in a manner specified by CDHS. At the Contractor’s request, and with CDHS approval, Contractor may establish a phase-in schedule to accumulate the required Financial Performance Guarantee. Contractor may elect to satisfy the Financial Performance Guarantee requirement by receiving payment on a post payment basis. The Financial Performance Guarantee shall remain in effect for a period not exceeding 90 calendar days following termination or expiration of this Contract unless CDHS has a financial claim against Contractor. Further rights and obligations of the Contractor and the Department, in regards to the Financial Performance Guarantee, shall be as specified in Title 22, CCR, Section 53865.