Common use of PREPA’s Right to Assign Clause in Contracts

PREPA’s Right to Assign. Notwithstanding the provisions of Section 19.1 (Restriction on Assignment), the Parties acknowledge that PREPA is undergoing a transformation process, and therefore agree that, after the front-end transition period of a Partnership Contract, Sale Contract, or any other PREPA Transaction (as these terms are defined in Act 120-2018), PREPA may sell, assign, convey, transfer, pledge, mortgage, sublease, delegate, hypothecate, or otherwise dispose (each, a “Transfer”) any of its rights, title, or interest in this Agreement as permitted by Applicable Law and at any time, without Resource Provider’s consent, and without cost, expense, or incremental liability to PREPA, to a T&D Operator, an Affiliate of PREPA or any Governmental Authority of Puerto Rico; provided that PREPA shall notify Resource Provider no later than thirty (30) Days before the effective date of any such Transfer. Unless otherwise agreed by PREPA, following the Transfer, PREPA shall be released from all obligations under this Agreement to the extent such transferee assumes such obligations in writing, provided that, for any Transfer to an Affiliate of PREPA, PREPA shall guarantee the payment obligations of such Affiliate arising out of this Agreement following such assignment.

PREPA’s Right to Assign. Notwithstanding the provisions of Section 19.1 (Restriction on Assignment), the Parties acknowledge that PREPA is undergoing a transformation process, and therefore agree that, after the front-end transition period of a Partnership Contract, Sale Contract, or any other PREPA Transaction (as these terms are defined in Act 120-2018), PREPA may sell, assign, convey, transfer, pledge, mortgage, sublease, delegate, hypothecate, or otherwise dispose (each, a “Transfer”) any of its rights, title, or interest in this Agreement as permitted by Applicable Law and at any time, without Resource Provider’s consent, and without cost, expense, or incremental liability to PREPA, to a T&D Operator, an Affiliate of PREPA PREPA, or any Governmental Authority of Puerto Rico; provided that PREPA shall notify Resource Provider no later than thirty (30) Days before the effective date of any such Transfer. Unless otherwise agreed by PREPA, following the Transfer, PREPA shall be released from all obligations under this Agreement to the extent such transferee assumes such obligations in writing, provided that, for any Transfer to an Affiliate of PREPA, PREPA shall guarantee the payment obligations of such Affiliate arising out of this Agreement following such assignment.