Common use of – Payment Assurance Clause in Contracts

– Payment Assurance. 5.1 In the event that the Borrower fails to, or is in jeopardy of failing to, make payments as required under Section 4.1, the Borrower shall impose and collect taxes on all taxable property and businesses in its municipality of an amount sufficient to pay to ACFA all amounts in arrears and becoming due and owing under this Agreement or any Debenture. 5.2 In authorizing its borrowing of each Principal Amount, the Borrower’s authorizing bylaw shall specifically obligate the Borrower to impose and collect adequate taxes as required under Section 5.1, with such obligation being set out in the form as required by ACFA. Such obligation shall not be amended or rescinded without the prior written consent of ACFA.

– Payment Assurance. 5.1 In the event that the Borrower fails to, or is in jeopardy of failing to, make payments as required under Section 4.1, the Borrower shall impose upon and collect taxes on all taxable property and businesses in from its municipality customers a fee of an amount sufficient to pay to ACFA all amounts in arrears and becoming due and owing under this Agreement or any Debenture. 5.2 In authorizing its borrowing of each Principal Amount, the Borrower’s authorizing bylaw or resolution shall specifically obligate the Borrower to impose and collect adequate taxes fees as required under Section 5.1, with such obligation being set out in the form as required by ACFA. Such obligation shall not be amended or rescinded without the prior written consent of ACFA.