Common use of Early Termination for Non-Appropriation Clause in Contracts

Early Termination for Non-Appropriation. Customer is a Texas governmental entity subject to legislative appropriation requirements and provisions of the Texas Constitution that may limit Customer’s ability to incur contractual debts. Accordingly, notwithstanding anything to the contrary contained elsewhere in this MSA or in any Service Order, in the event that, for any future fiscal period, sufficient funds are not appropriated or allocated for payment of any one or more Service Orders, Customer may terminate the Service Order at issue as a matter of public convenience without incurring a Termination Charge or any other early termination fee. If and when Customer becomes aware that non-allocation of funds for the coming fiscal period appears likely, Customer shall use reasonable efforts to notify Provider of that possibility prior to the end of the then-current fiscal period. Once the non-appropriation decision has been made, Customer shall, as soon as reasonably practicable, deliver written notice of termination for non-appropriation to Provider specifying which Service or Services and/or which Service Order or Service Orders are being terminated for non-appropriation and the date on which such early termination shall occur. Customer shall remain obligated to pay for all Services delivered through the date of termination.