Common use of Owner Insolvency Clause in Contracts

Owner Insolvency. If Owner becomes insolvent, institutes bankruptcy proceedings or has bankruptcy proceedings instituted against it, or makes a general assignment for the benefit of creditors, or if a receiver is appointed for the benefit of its creditors, or if a receiver is appointed on account of its insolvency, and Contractor does not receive the full amount owed to it under the Prime Contract (the “Prime Contract Price”), then Subcontractor is only entitled to receive, and Contractor is only responsible for, that percentage of the Subcontract Price which is equal to the percentage of the Prime Contract Price that Contractor receives from Owner.

Owner Insolvency. If Owner becomes insolvent, institutes bankruptcy proceedings or has bankruptcy proceedings instituted against it, or makes a general assignment for the benefit of creditors, or if a receiver is appointed for the benefit of its creditors, or if a receiver is appointed on account of its insolvency, and Contractor Design-Builder does not receive the full amount owed to it under the Prime Contract (the “Prime Contract Price”), then Subcontractor is only entitled to receive, and Contractor Design-Builder is only responsible for, that percentage of the Subcontract Price which is equal to the percentage of the Prime Contract Price that Contractor Design-Builder receives from Owner.