Future moratorium legislation Clause Samples
A 'Future moratorium legislation' clause addresses how the parties will handle the impact of any new laws or regulations that impose a moratorium affecting the contract's subject matter. Typically, this clause outlines the steps the parties must take if such legislation is enacted, such as suspending obligations, renegotiating terms, or even terminating the agreement if performance becomes impossible or illegal. Its core function is to allocate risk and provide a clear process for adapting the contract in response to unforeseen legal changes, thereby ensuring both parties are protected from circumstances beyond their control.
POPULAR SAMPLE Copied 1 times
Future moratorium legislation. If after the date of this agreement, any state or locality enacts legislation granting mortgagors a full or partial moratorium on mortgage payments while the mortgagor is on active military service, CitiMortgage, will, by notice to the Paying Agent, elect whether CitiMortgage will advance part or all of any postponed payments under such legislation. CitiMortgage will make a separate election for each state or locality that adopts such legislation. To the extent CitiMortgage elects not to advance part or all of such postponed payments, the Paying Agent will not have any obligation to advance such payments.