Step-in from Termination Date Clause Samples
The 'Step-in from Termination Date' clause allows a third party, often a lender or project sponsor, to assume the rights and obligations of a party to a contract immediately upon the contract's termination. In practice, this means that if the original party defaults or the agreement is otherwise terminated, the designated third party can 'step in' and continue the contract without interruption, ensuring continuity of service or project delivery. This clause is essential for protecting the interests of stakeholders who rely on the ongoing performance of the contract, minimizing disruption and financial loss in the event of termination.
Step-in from Termination Date. Subject to Section 9.4, from the Termination Date, provided that the Authority has (if applicable) complied with Section 3.7 and Section 4.5 in terminating the Project Agreement, the Authority will be free to exercise its rights under any Material Project Contractor Collateral Agreement to step-in and assume (or cause a third party designated by the Authority to step-in and assume) Project Co’s rights and obligations under, or to transfer or assign, any Material Contract in accordance with a Material Project Contractor Collateral Agreement.
Step-in from Termination Date. Subject to Section 9.4, from the Termination Date, provided that the Owner has (if applicable) complied with Section 3.7 and Section 4.5 in terminating the Project Agreement, the Owner will be free to exercise its rights under the Design-Builder Collateral Agreement to step-in and assume (or cause a third party designated by the Owner to step-in and assume) Project Co’s rights and obligations under, or to transfer or assign, the Design-Build Agreement in accordance with the Design-Builder Collateral Agreement.
Step-in from Termination Date. Subject to Section 9.4 [Retention of Security for Deficiency] , from the Termination Date, provided that the Authority has (if applicable) complied with Section 3.7 [No Right to Terminate] and Section 4.5 [Authority Right to Terminate] in terminating the Project Agreement, the Authority will be free to exercise its rights under any Collateral Agreement to step-in and assume (or cause a third party designated by the Authority to step-in and assume) Project Co’s rights and obligations under, or to transfer or assign, any Material Contract in accordance with a Collateral Agreement.
Step-in from Termination Date. Subject to Section 10.4 [Retention of Security for Deficiency] of this Agreement, from the Termination Date, provided always that the Province has (if applicable) complied with Section 4.9 [Province Right to Terminate] of this Agreement in terminating the Project Agreement, the Province shall be free to exercise its rights under any Collateral Agreement to step-in and assume (or cause a third party designated by the Province to step-in and assume) Project Co’s rights and obligations under, or to transfer or assign, any Principal Contract in accordance with a Collateral Agreement.