Common use of Non-Appropriation Event Clause in Contracts

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 continuation of 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 any amounts due and owing under this Agreement to the extent practicable, and upon payment such Non-Appropriation event shall be nullified. (c) Within 30 days of Provider’s receipt of the NAE Notice, Provider shall give notice to Purchaser of Provider’s election among options (i) and (ii) under subsection (b) above. If Provider does not provide notice to Purchaser of Provider’s election under this subsection (c) within such period, Provider shall be deemed to have elected option (ii) under subsection (b) above, provided that, if Provider elects or is deemed to have elected option (ii) it may subsequently change its election at any time upon prior written notice to Purchaser. (d) If Provider elects option (i) under subsection (b) above, Provider shall cause the System to be disconnected and removed from the Site and Purchaser shall pay to Provider all reasonable removal costs within 30 days after receiving Provider’s invoice for such removal costs.

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 continuation of 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 any amounts due and owing under this Agreement to the extent practicable, and upon payment such Non-Appropriation event shall be nullified. (c) Within 30 days of Provider’s receipt of the NAE Notice, Provider shall give notice to Purchaser of Provider’s election among options (i) and (ii) under subsection (b) above. If Provider does not provide notice to Purchaser of Provider’s election under this subsection (c) within such period, Provider shall be deemed to have elected option (ii) under subsection (b) above, provided that, if Provider elects or is deemed to have elected option (ii) it may subsequently change its election at any time upon prior written notice to Purchaser. (d) If Provider elects option (i) under subsection (b) above, Provider shall cause the System to be disconnected and removed from the Site and Purchaser shall pay to Provider all reasonable removal costs within 30 days after receiving Provider’s invoice for such removal costs.