Non-Appropriation Event Clause Samples
A Non-Appropriation Event clause defines what happens if a government entity is unable to fulfill its payment obligations under a contract due to a failure to secure necessary funding or budget appropriations. In practice, this clause typically allows the government party to terminate the agreement without penalty if its legislative body does not allocate funds for future payments, often requiring prompt written notice to the other party. The core function of this clause is to protect public entities from being bound to financial commitments that exceed their legally approved budgets, thereby allocating the risk of non-funding to the other contracting party and ensuring compliance with public finance laws.
Non-Appropriation Event. It is the present intention and expectation of the Purchaser that the applicable budgetary entity, within the limits of available funds and revenues, will make an appropriation of a sufficient amount to fund Purchaser’s obligations hereunder during each fiscal year of the Term; provided, however, this declaration of intent shall not be binding upon any future applicable budgetary entity in any future fiscal year, except to the extent of any previously appropriated funds. Purchaser shall use reasonable good faith efforts to have funds properly budgeted, appropriated, allotted, or otherwise made available for this Agreement (including obtaining legislative and other authorizations for use of such funds) and to satisfy such conditions in a timely manner. All payments made by Purchaser under this Agreement shall constitute currently budgeted expenditures and shall not constitute or give rise to a general obligation debt, an indebtedness, or multiple-fiscal year direct or indirect debt or other financial obligation whatsoever within the meaning of any constitutional or statutory provisions or limitation.
(a) If an appropriation for this Agreement is not made for Purchaser by the applicable budgetary entity for any fiscal year of Purchaser during the Term (a “Non-Appropriation Event”), Purchaser shall promptly give notice of such Non-Appropriation Event (the “NAE Notice”). Notwithstanding the occurrence of a Non-Appropriation Event or the delivery of the NAE Notice, Purchaser will not interrupt or impair the delivery of Energy or jeopardize Provider’s sale, transfer or other monetization of Environmental Incentives or Tax Credits.
(b) Following receipt by Provider of an NAE Notice, Provider, in its sole discretion, (i) may terminate this Agreement and remove the System, or (ii) may continue to operate the System and deliver the Energy to Purchaser or to a third party or utility company without payment by Purchaser therefore during the applicable fiscal year (and each fiscal year thereafter until an appropriation of made). Under the circumstances of (ii), other than with respect to the obligation to make payment for energy delivered, all obligations of Purchaser under this Agreement shall remain in full force and effect. Should Purchaser receive an appropriation for this Agreement during the continuationof the Non-Appropriation Event, before termination under option (i) has been exercised, Purchaser shall pay such monies to Provider as to make Provider whole for ...
Non-Appropriation Event. Notwithstanding anything herein to the contrary, due to the constitutional limitations on Purchaser, a Force Majeure event shall include a “budget non-appropriation event” in which Purchaser’s appropriation for any year covered in this Agreement does not appropriate funds for the procurement of any utility services for Purchaser. During the continuation of a budget non-appropriation event as defined above, if Purchaser does not otherwise have other funds available to make payments otherwise due on this Agreement, Purchaser shall not be obligated to pay for (and Seller shall not be required to deliver) any services provided under this Agreement until the budget non-appropriation event has terminated. Purchaser agrees that it shall use its best efforts to seek appropriation for utility services during the term of this Agreement. If a budget non-appropriation event continues for more than 180 days, Seller (but not Purchaser) may terminate this Agreement.
Non-Appropriation Event. Purchaser shall use reasonable best efforts to annually appropriate funds for the purchase of electrical output of System. Should Purchaser fail to appropriate funds, Purchaser may elect to buyout System per Section 1.2. Should Purchaser elect not to purchase System, Non-Appropriation event shall be deemed “Termination for Convenience” as described in Section 20. And Purchaser will be obligated to pay Provider the early termination fee per Exhibit F.
Non-Appropriation Event. The Operator acknowledges and agrees that in accordance with Colorado constitutional restrictions, Customer has appropriated funds necessary to satisfy the payments that are required to fulfill its obligations under this Agreement for the initial year of the term of this Agreement. The payment of any compensation due under this Agreement for any year beyond the first year provided for herein is contingent upon annual appropriation of funds in accordance with applicable law. During the Term of this Agreement, you agree in good faith that your staff will include the amounts to become due under this Agreement in your budget request for each fiscal year for funding your energy costs.
A. In any fiscal year, your failure to make an appropriation for the purchase of electricity from any source at any of your locations for a future fiscal year, including the encumbrance under this Agreement will be a non-appropriation event (a “Non-Appropriation Event”). If a Non-Appropriation Event occurs, you agree to assign your Production Capacity to us. We will have the right to retain your Production Capacity, and the Bill Credits and RECs associated with your Production Capacity, for the duration of the Non-Appropriation Event. You will not have the right to receive Bill Credits during the occurrence of a Non-Appropriation Event.