Assurance of Payment Clause Samples
The Assurance of Payment clause requires one party to provide guarantees or evidence that payment will be made as agreed under the contract. In practice, this may involve providing a letter of credit, a payment bond, or other financial instruments to demonstrate the ability and commitment to pay. This clause is essential for protecting the receiving party from the risk of non-payment, ensuring that they have recourse or security if the paying party defaults.
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Assurance of Payment. 6.1 Upon request by ▇▇▇▇▇▇▇, CCA shall, at any time and from time to time, provide to Verizon adequate assurance of payment of amounts due (or to become due) to Verizon hereunder.
6.2 Assurance of payment of charges may be requested by Verizon if CCA (a) prior to the Effective Date, has failed to timely pay a bill rendered to CCA by Verizon or its Affiliates, (b) on or after the Effective Date, fails to timely pay a bill rendered to CCA by Verizon or its Affiliates, (c) in Verizon’s reasonable judgment, at the Effective Date or at any time thereafter, is unable to demonstrate that it is creditworthy, or (d) admits its inability to pay its debts as such debts become due, has commenced a voluntary case (or has had a case commenced against it) under the U.S. Bankruptcy Code or any other law relating to bankruptcy, insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
6.3 Unless otherwise agreed by the Parties, the assurance of payment shall consist of an unconditional, irrevocable standby letter of credit naming Verizon as the beneficiary thereof and otherwise in form and substance satisfactory to Verizon from a financial institution acceptable to Verizon. The letter of credit shall be in an amount equal to two (2) months anticipated charges (including, but not limited to, both recurring and non-recurring charges), as reasonably determined by Verizon, for the Services to be provided by Verizon to CCA in connection with this Agreement. If CCA meets the condition in subsection 6.2(d) above or has failed to timely pay two or more bills rendered by Verizon or a Verizon Affiliate in any twelve (12)-month period, Verizon may, at its option, demand (and CCA shall provide) additional assurance of payment, consisting of monthly advanced payments of estimated charges as reasonably determined by Verizon, with appropriate true-up against actual billed charges no more frequently than once per Calendar Quarter.
6.4 [Intentionally Left Blank].
6.5 [Intentionally Left Blank].
6.6 Verizon may (but is not obligated to) draw on the letter of credit upon notice to CCA in respect of any amounts to be paid by CCA hereunder that are not paid within thirty (30) days of the date that payment of such amounts is required by this Agreement.
6.7 If Verizon draws on the letter of credit, upon request by ▇▇▇▇▇▇▇, CCA shall provide a replacement or sup...
Assurance of Payment. 6.1 Upon request by Verizon, CBB shall, at any time and from time to time, provide to Verizon adequate assurance of payment of amounts due (or to become due) to Verizon hereunder.
6.2 Assurance of payment of charges may be requested by Verizon if CBB (a) prior to the Effective Date, has failed to timely pay a ▇▇▇▇ rendered to CBB by Verizon or its Affiliates, (b) on or after the Effective Date, fails to timely pay a ▇▇▇▇ rendered to CBB by Verizon or its Affiliates, (c) in Verizon’s reasonable judgment, at the Effective Date or at any time thereafter, is unable to demonstrate that it is creditworthy, or (d) admits its inability to pay its debts as such debts become due, has commenced a voluntary case (or has had a case commenced against it) under the U.S. Bankruptcy Code or any other law relating to bankruptcy, insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
6.3 Unless otherwise agreed by the Parties, the assurance of payment shall consist of an unconditional, irrevocable standby letter of credit naming Verizon as the beneficiary thereof and otherwise in form and substance satisfactory to Verizon from a financial institution acceptable to Verizon. The letter of credit shall be in an amount equal to two (2) months anticipated charges (including, but not limited to, both recurring and non-recurring charges), as reasonably determined by Verizon, for the Services to be provided by Verizon to CBB in connection with this Agreement. If CBB meets the condition in subsection 6.2(d) above or has failed to timely pay two or more bills rendered by Verizon or a Verizon Affiliate in any twelve (12)-month period, Verizon may, at its option, demand (and CBB shall provide) additional assurance of payment, consisting of monthly advanced payments of estimated charges as reasonably determined by Verizon, with appropriate true-up against actual billed charges no more frequently than once per Calendar Quarter.
6.4 [Intentionally Left Blank].
6.5 [Intentionally Left Blank].
6.6 Verizon may (but is not obligated to) draw on the letter of credit upon notice to CBB in respect of any amounts to be paid by CBB hereunder that are not paid within thirty (30) days of the date that payment of such amounts is required by this Agreement.
6.7 If Verizon draws on the letter of credit, upon request by Verizon, CBB shall provide a replacement or sup...
Assurance of Payment. 10.1 Upon request by AT&T-21STATE, CLEC will provide AT&T-21STATE with the AT&T-21STATE Credit Profile form and provide information to AT&T-21STATE regarding CLEC’s credit and financial condition.
10.2 Assurance of payment may be requested by AT&T-21STATE:
10.2.1 If based on AT&T-21STATE’s analysis of the AT&T-21STATE Credit Profile and other relevant information regarding CLEC’s credit and financial condition, there is an impairment of the credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from Third Party financial sources; or
10.2.2 CLEC fails to timely pay a bill rendered to CLEC by AT&T-21STATE (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 12.4 below); and/or
10.2.3 CLEC’s gross monthly billing has increased, AT&T-21STATE reserves the right to request additional security (or to require a security deposit if none was previously requested) and/or file a Uniform Commercial Code (UCC-1) security interest in CLEC’s “accounts receivables and proceeds”; or
10.2.4 When CLEC admits its inability to pay its debts as such debts become due, has commenced a voluntary case (or has had an involuntary case commenced against it) under the U.S. Bankruptcy Code or any other law relating to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
10.3 If AT&T-21STATE requires CLEC to provide a security deposit, CLEC shall provide such security deposit prior to the inauguration of service or within fifteen (15) calendar days of AT&T-21STATE’s request, as applicable. Deposit request notices will be sent to CLEC via certified mail or overnight delivery. Such notice period will start the day after the deposit request notice is rendered by certified mail or overnight delivery. Interest on a cash security deposit shall accrue and be applied or refunded in accordance with the terms in AT&T-21STATE’s applicable Tariff.
10.4 Unless otherwise agreed by the Parties, the assurance of payment will consist of:
10.4.1 a Cash Deposit; or
10.4.2 a Letter of Credit; or
10.4.3 a Surety Bond.
10.5 The Cash Deposit, Letter of Credit or Surety Bond must be in an amount up to three (3) months anticipated charges (including, but not limited to, recurring, non-recurring and usage sen...
Assurance of Payment. 3.1 Upon request by AT&T OKLAHOMA, CLEC will provide AT&T OKLAHOMA with adequate assurance of payment of amounts due (or to become due) to AT&T OKLAHOMA.
3.2 Assurance of payment may be requested by AT&T OKLAHOMA if:
3.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made a least twelve (12) consecutive months of timely payments to AT&T OKLAHOMA for charges incurred as a CLEC; or
3.2.2 CLEC fails to timely pay a bill rendered to CLEC by AT&T OKLAHOMA (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 13.4); or
3.2.3 when AT&T OKLAHOMA sends CLEC the second delinquency notification during the most recent twelve (12) months; or
3.2.4 when AT&T OKLAHOMA suspends CLEC's ability to process orders in accordance with Section 14.4.1; or
3.2.5 when CLEC files for protection under the bankruptcy laws; or when an involuntary petition in bankruptcy is filed against CLEC and is not dismissed within sixty (60) days; or
3.2.6 when this Agreement expires or terminates.
3.3 The Cash Deposit or Letter of Credit must be in an amount equal to two (2) months anticipated charges (including, but not limited to, recurring, non-recurring and usage sensitive charges, termination charges and advance payments), as reasonably determined by AT&T OKLAHOMA, for the Interconnection, Resale Services, Unbundled Network Elements, Collocation or any other functions, facilities, products or services to be furnished by AT&T OKLAHOMA under this Agreement.
3.4 To the extent that a CLEC elects to make a Cash Deposit, the Parties intend that the provision of such Cash Deposit shall constitute the grant of a security interest in the Cash Deposit pursuant to Article 9 of the Uniform Commercial Code in effect in any relevant jurisdiction.
3.4.1 For the purposes of this Section, interest will be calculated as specified in Section 9.2.1 and shall be credited to CLEC’s account at the time that the cash deposit is credited to CLEC's account.
3.4.2 So long as CLEC maintains timely compliance with its payment obligations, AT&T OKLAHOMA will not increase the deposit amount required. If CLEC fails to maintain timely compliance with its payment obligations, AT&T OKLAHOMA reserves the right to require additional deposit(s) in accordance with this Section 3.
3.5 If during the first six (6) months of operations, CLEC has been sent one delinquency notification letter b...
Assurance of Payment. 7.1 Upon request by ▇▇▇▇▇, TCA shall provide to ▇▇▇▇▇ adequate assurance of payment of amounts due (or to become due) to ▇▇▇▇▇ hereunder. Assurance of payment of charges may be required by ▇▇▇▇▇ if TCA (a) in ▇▇▇▇▇’▇ reasonable judgment, at the Effective Date or at any time thereafter, is unable to demonstrate that it is creditworthy, (b) fails to timely pay a bill rendered to TCA by ▇▇▇▇▇, or (c) admits its inability to pay its debts as such debts become due, has commenced a voluntary case (or has had a case commenced against it which is not withdrawn within thirty (30) days) under the U.S. Bankruptcy Code or any other law relating to bankruptcy, insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.2 Unless otherwise agreed by the Parties, the assurance of payment shall consist of a cash security deposit in U.S. dollars held by ▇▇▇▇▇. The cash security deposit shall be in an amount equal to two (2) months anticipated charges (including, but not limited to, both recurring and non-recurring charges), as reasonably determined by ▇▇▇▇▇, for the Services to be provided by ▇▇▇▇▇ to TCA in connection with this Agreement.
7.3 To the extent that ▇▇▇▇▇ elects to require a cash deposit, the Parties intend that the provision of such deposit shall constitute the grant of a security interest in the deposit pursuant to Article 9 of the Uniform Commercial Code as in effect in any relevant jurisdiction.
7.4 Interest will be paid on all sums held on deposit pursuant to KRS 278.460.
7.5 ▇▇▇▇▇ may (but is not obligated to) draw on the cash deposit, as applicable, upon notice to TCA in respect of any amounts to be paid by TCA hereunder that are not paid within thirty (30) days of the date that payment of such amounts is required by this Agreement.
7.6 If ▇▇▇▇▇ draws on the cash deposit, upon request by ▇▇▇▇▇, TCA shall provide a replacement or supplemental cash deposit conforming to the requirements of Section 7.2.
7.7 Notwithstanding anything else set forth in this Agreement, if ▇▇▇▇▇ makes a request for assurance of payment in accordance with the terms of this Section, and TCA has failed to comply with such request within thirty calendar days following such request, then ▇▇▇▇▇ shall have no obligation thereafter to perform under this Agreement until such time as TCA has provided ▇▇▇▇▇ with such assurance of payment.
7.8 The fact tha...
Assurance of Payment. 3.1 Upon request by SBC ARKANSAS, CLEC will provide SBC ARKANSAS with adequate assurance of payment of amounts due (or to become due) to SBC ARKANSAS.
3.2 Assurance of payment may be requested by SBC ARKANSAS if:
3.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made a least twelve (12) consecutive months of timely payments to SBC ARKANSAS for charges incurred as a CLEC; or where CLEC is doing or has done business as a local service provider,
3.2.2 in SBC ARKANSAS’ reasonable judgment, at the Effective Date or at any time thereafter, there has been an impairment of the established credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from financial sources, including but not limited to Moody's, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor Page 13 of 533 Interconnection Agreement-ARKANSAS/SOUTHWESTERN BELL TELEPHONE, L.P. warning briefs, rating downgrades, and articles discussing pending credit problems, SBC will take into account the entirety of the circumstances and act in a in a commercially reasonable manner; or
3.2.3 CLEC fails to timely pay a bill rendered to CLEC by SBC ARKANSAS (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.4); or
3.2.4 CLEC admits its inability to pay its debts as such debts become due, has commenced a voluntary case (or has had an involuntary case commenced against it) under the U.S. Bankruptcy Code or any other law relating to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
3.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC ARKANSAS’ option, consist of:
3.3.1 a cash security deposit in U.S. dollars held by SBC ARKANSAS (“Cash Deposit”) or
3.3.2 an unconditional, irrevocable standby bank letter of credit from a financial institution acceptable to SBC ARKANSAS naming SBC ARKANSAS as the beneficiary thereof and otherwise in form and substance satisfactory to SBC ARKANSAS (“Letter of Credit”).
3.4 The Cash Deposit or Letter of Credit must be in an amount equal to three (3) months anticipated charges (including, but not limited to, recurring, n...
Assurance of Payment. 6.1 Frontier may, in order to safeguard its interest, require Band CLEC to make a deposit to be held by Frontier as a guarantee of the payment of rates and charges, unless satisfactory credit has already been established. Any such deposit may be held during the continuance of the service as security for the payment of any and all amounts accruing for the service. A deposit will be returned with interest, at the Commission prescribed deposit rate, if and when Band CLEC pays its undisputed bills on time for twenty-four (24) consecutive months.
6.2 Unless otherwise agreed by the Parties, the assurance of payment shall consist of a deposit or irrevocable standby letter of credit naming Frontier as the beneficiary thereof and otherwise in form and substance satisfactory to Frontier from a financial institution acceptable to Frontier. The assurance of payment shall be in an amount equal to two (2) months anticipated charges (including, but not limited to, both recurring and non-recurring charges), as reasonably determined by Frontier, for the Services to be provided by Frontier to Band CLEC in connection with this Agreement. Frontier reserves the right to increase the deposit requirements when, in its sole judgment, the conditions justify such action; such conditions include but are not limited to: current deposit does not cover two (2) months billing, history of late payment, or reconnection after disconnection for non-payment, or a significant probability of a bankruptcy filing by Band CLEC.
6.3 Frontier may (but is not obligated to) draw on the assurance of payment upon notice to Band CLEC in respect of any amounts to be paid by Band CLEC hereunder that are not paid within thirty (30) days of the date that payment of such amounts is required by this Agreement.
6.4 If Frontier draws on the assurance of payment, upon request by Frontier, Band CLEC shall provide a replacement or supplemental assurance of payment conforming to the requirements of Section 6.2.
6.5 Notwithstanding anything else set forth in this Agreement, if Frontier makes a request for assurance of payment in accordance with the terms of this Section, then Frontier shall have no obligation thereafter to perform under this Agreement until such time as Band CLEC has provided Frontier with such assurance of payment.
6.6 The fact that assurance of payment has been made in no way relieves Band CLEC the prompt payment of bills on presentation nor, does it constitute a waiver or modification of the regu...
Assurance of Payment. 6.1 If an event specified in Section 6.2 occurs, then upon request by Frontier, Onvoy shall, at any time and from time to time, provide to Frontier adequate assurance of payment of amounts due (or to become due) to Frontier hereunder. Adequate assurance of payment is subject to the limitations in Section 6.3.
6.2 Assurance of payment of charges may be requested by Frontier if ▇▇▇▇▇ (a) prior to the Effective Date, has failed to timely pay a bill rendered to Onvoy by Frontier or its Affiliates, (b) on or after the Effective Date, fails to timely pay a bill rendered to Onvoy by Frontier or its Affiliates, (c) in Frontier’s reasonable judgment, at the Effective Date or at any time thereafter, is unable to demonstrate that it is creditworthy, or (d) admits its inability to pay its debts as such debts become due, has commenced a voluntary case (or has had a case commenced against it) under the U.S. Bankruptcy Code or any other law relating to bankruptcy, insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
6.3 Unless otherwise agreed by the Parties, the assurance of payment shall consist of, at Onvoy’s election, a cash security deposit or an unconditional, irrevocable standby letter of credit naming Frontier as the beneficiary thereof and otherwise in form and substance satisfactory to Frontier from a financial institution acceptable to Frontier. The adequate assurance of payment shall be in an amount equal to two (2) months anticipated charges (including, but not limited to, both recurring and non-recurring charges), as reasonably determined by Frontier, for the Services to be provided by Frontier to Onvoy in connection with this Agreement. If Onvoy meets the condition in subsection 6.2(d) above or has failed to timely pay two or more bills rendered by Frontier or a Frontier Affiliate in any twelve (12)-month period, Frontier may, at its option, demand (and Onvoy shall provide) additional assurance of payment, consisting of monthly advanced payments of estimated charges as reasonably determined by Frontier, with appropriate true-up against actual billed charges no more frequently than once per Calendar Quarter.
6.4 [Intentionally Left Blank].
6.5 [Intentionally Left Blank].
6.6 Frontier may (but is not obligated to) draw on the assurance of payment upon notice to Onvoy in respect of any amounts to be paid by Onvoy hereun...
Assurance of Payment. 10.1 Upon request by AT&T-22STATE, CLEC will provide AT&T-22STATE with the AT&T-22STATE Credit Profile form and provide information to AT&T-22STATE regarding CLEC’s credit and financial condition.
10.2 Assurance of payment may be requested by AT&T-22STATE:
10.2.1 If based on AT&T-22STATE’s analysis of the AT&T-22STATE Credit Profile and other relevant information regarding CLEC’s credit and financial condition, there is an impairment of the credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from Third Party financial sources; or
10.2.2 CLEC fails to timely pay a bill rendered to CLEC by AT&T-22STATE (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 12.4 below); and/or
10.2.3 CLEC’s gross monthly billing has increased, AT&T-22STATE reserves the right to request additional security (or to require a security deposit if none was previously requested); or
10.2.4 When CLEC admits its inability to pay its debts as such debts become due, has commenced a voluntary case (or has had an involuntary case commenced against it) under the U.S. Bankruptcy Code or any other law relating to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
Assurance of Payment. (a) At any time and from time to time, based on the conditions set forth in this Section 7, Verizon may request, and Broadview shall provide to Verizon, adequate assurance of payment of amounts due (or to become due) to Verizon under the Amended Agreements.
(b) Verizon may request, and Broadview shall provide, assurance of payment if (i) Broadview (A) in any month (“Month X”), fails to pay when due amounts (including, without limitation, past due amounts from previous billing periods) that in total equal or exceed five percent (5%) of the total amount due to Verizon during that month for Services billed by Verizon and fails to cure such nonpayment within five (5) business days of Verizon’s written notice of nonpayment, and (B) in any other month within the same period of twelve consecutive months as Month X (“Month Y”), fails to pay when due amounts (including, without limitation, past due amounts from previous billing periods) that in total equal or exceed five percent (5%) of the total amount due to Verizon during Month Y for Services billed by Verizon and fails to cure such nonpayment within five (5) business days of Verizon’s written notice of nonpayment (such notice, the “Cure Notice,” to be provided in accordance with Section 9 below (or, in the case of an Adopting CLEC, in accordance with the notice provisions of the Interconnection Agreement, until such time as the Adopting CLEC may provide Verizon with proper notice of the Adopting CLEC’s contact information that the Adopting CLEC identifies as being for the specific purpose of the Cure Notice under Section 9(b) below)); or (ii) Broadview admits its inability to pay its debts as such debts become due, has commenced a voluntary case (or has had a case commenced against it) under the U.S. Bankruptcy Code or any other law relating to bankruptcy, insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding. For purposes of Section 7(b)(i) above, a payment shall not be deemed untimely if, at the payment Due Date: (i) Broadview has notified Verizon of a bona fide dispute regarding such amount in accordance with the requirements of Section 5(a) of this Amendment, and (ii) in cases where Verizon has previously denied such a dispute, Broadview, in a written notice provided within (ten) 10 business days after such denial, stated that it had a bona fide basis to challenge the d...