Common use of Insolvency of Subcontractor Clause in Contracts

Insolvency of Subcontractor. A. Upon the appointment of a receiver for Subcontractor, or upon Subcontractor making an assignment for the benefit of creditors, or if Subcontractor seeks protection under the Bankruptcy Code, or commits any other act of insolvency, Contractor may, absent any applicable legal limitation, terminate this Agreement upon giving seventy-two (72) hours written notice, by certified mail, to Subcontractor, its trustee, and its surety, if any, unless Subcontractor, the surety, or the trustee: 1. Promptly cures all defaults; 2. Provides adequate assurance of future performance; 3. Compensates Contractor for all actual pecuniary loss resulting from such defaults; and 4. Assumes the obligations of Subcontractor within the statutory time limits. B. If Subcontractor is not performing in accordance with the schedule of work at the time of entering an order for relief, or at any subsequent time, Contractor, while awaiting the decision of Subcontractor or its trustee to reject or to accept this Agreement and provide adequate assurance of its ability to perform hereunder, may avail itself of such remedies under this Section as are reasonably necessary to maintain the schedule of work. Contractor may offset against any sums due or to become due Subcontractor all costs incurred in pursuing any of the remedies provided hereunder, including, but not limited to, reasonable overhead, profit and actual attorneys’ fees incurred as a result of Subcontractor’s non-performance. Subcontractor shall be liable for the payment of any amount by which such expense may exceed the unpaid balance of the Subcontract Price.

Insolvency of Subcontractor. A. Upon the appointment of a receiver for Subcontractor, or upon Subcontractor making an assignment for the benefit of creditors, or if Subcontractor seeks protection under the Bankruptcy Code, or commits any other act of insolvency, Contractor may, absent any applicable legal limitation, terminate this Agreement upon giving seventy-two (72) hours written notice, by certified mail, to Subcontractor, its trustee, and its surety, if any, unless Subcontractor, the surety, or the trustee: 1. Promptly cures all defaults; 2. Provides adequate assurance of future performance; 3. Compensates Contractor for all actual pecuniary loss resulting from such defaults; and 4. Assumes the obligations of Subcontractor within the statutory time limits. B. If Subcontractor is not performing in accordance with the schedule of work at the time of entering an order for relief, or at any subsequent time, Contractor, while awaiting the decision of Subcontractor or its trustee to reject or to accept this Agreement and provide adequate assurance of its ability to perform hereunder, may avail itself of such remedies under this Section Article as are reasonably necessary to maintain the schedule of work. Contractor may offset against any sums due or to become due Subcontractor all costs incurred in pursuing any of the remedies provided hereunder, including, but not limited to, reasonable overhead, profit and actual attorneys’ fees incurred as a result of Subcontractor’s non-performance. Subcontractor shall be liable for the payment of any amount by which such expense may exceed the unpaid balance of the Subcontract Price.