Common use of Receivership or Assignment for the Benefit of Creditors Clause in Contracts

Receivership or Assignment for the Benefit of Creditors. 8.4.2.1 If the A/E makes a general assignment for the benefit of creditors or if a receiver is appointed for all or a substantial part of the A/E’s business or property, the Contracting Authority shall serve written notice on the A/E stating that any failure of the A/E to provide adequate assurance of continued performance shall be considered a rejection of the Agreement, which shall result in termination of the Agreement for cause. Such termination of the Agreement need not be evidenced by an order of any court.

Receivership or Assignment for the Benefit of Creditors. 8.4.2.1 If the A/E makes a general assignment for the benefit of creditors or if a receiver is appointed for all or a substantial part of the A/E’s business or property, the Contracting Authority shall serve written notice on the A/E and the A/E’s Surety stating that any failure of the A/E to provide adequate assurance of continued performance shall be considered a rejection of the Agreement, which shall result in termination of the Agreement for cause. Such termination of the Agreement need not be evidenced by an order of any court.