Common use of Insolvency Event or Direction by Customer under The Main Contract Clause in Contracts

Insolvency Event or Direction by Customer under The Main Contract. If an Insolvency Event occurs with respect to the Subcontractor, or if Honeywell is directed by the Customer under the Main Contract to remove the Subcontractor from the Site as a result of some act or omission of the Subcontractor, Honeywell may by written notice to the Subcontractor: 1) terminate the Subcontractor or 2) take over the whole or part of the Works. An ”Insolvency Event" occurs when 1) a Party is, or informs the other Party in writing or creditors generally that the Party is, insolvent or financially unable to proceed with this Subcontract; 2) execution is levied against a Party by a creditor; 3) in relation to a corporation: (i) presumed by a court to be insolvent under relevant legislation; (ii) notice is given of a meeting of creditors with a view to the corporation entering a deed of company arrangement; (iii) a Party stops or suspends payment to creditors generally or enters into an arrangement, assignment or composition with or for the benefit of its creditors generally or any class of them or proposes to do so; (iv) an administrator, receiver, receiver and manager, controller, managing controller, trustee, provisional liquidator or liquidator is appointed to a Party or any of its assets or business or any step is taken to do so or any Party requests such appointment; (v) an application is made, a resolution is passed, or an order is made for the winding-up of the Party, including an application relating to dissolution, liquidation, provisional liquidation or bankruptcy; (vi) a charge of any property of the Party takes possession of that property; (vii) the corporation resolves by special resolution that the Party be wound up voluntarily (other than for a members’ voluntary winding-up); or