Common use of Receivership and Foreclosure Clause in Contracts

Receivership and Foreclosure. a. The Franchise shall, at the option of the Grantors, cease and terminate one hundred twenty (120) days after the appointment of a receiver or receivers, or trustee or trustees, to take over and conduct the business of the Grantee, whether in a receivership, reorganization, or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120) days, or unless such receivers or trustees shall have, within one hundred twenty (120) days after their election or appointment, fully complied with all the terms and provisions of this Franchise, and the receivers or trustees, within said one hundred twenty (120) days, shall have remedied all defaults under the Franchise; and such receivers or trustees shall, within said one hundred twenty (120) days, execute an agreement, duly approved by the court having jurisdiction of the premises, whereby such receivers or trustees assume and agree to be bound by each and every term, provisions and limitation of this Franchise. b. In the case of a foreclosure or other judicial sale or transfer in lieu thereof of the plant, property and equipment of the Grantee or any part thereof, including or excluding the Franchise, the Grantors may serve notice of termination upon the Grantee and the successful bidder at such sale or proposed transferee, in which event the Franchise and all rights and privileges of the Grantee granted hereunder shall cease and terminate one hundred twenty (120) days after service of such notice unless the Grantors shall have approved the transfer of the Franchise pursuant to section 19. Provided, however, that if such transferee is a prior secured party pursuant to section 19.a to whom the transfer has been made in lieu of foreclosure or as a result of a foreclosure or other judicial sale or is a successful bidder at foreclosure or other judicial sale whom the Grantors has not approved pursuant to Section 19, the transferee shall be permitted to continue operating the system for twelve months from the date of such transfer, while actively seeking another operator meeting Grantors' requirements for approval, if the transferee shall have covenanted and agreed with the Grantors to assume and be bound by all of the terms and conditions of the Franchise reasonably applicable under the conditions and circumstances existing during said twelve month period.

Receivership and Foreclosure. a. The Franchise shall, at Grantee shall immediately notify the option Grantor in writing if it: files a voluntary petition in bankruptcy or a voluntary petition to effect a plan or other arrangement with creditors; files an answer admitting the jurisdiction of the GrantorsCourt and the material allegations of an involuntary petition filed pursuant to the Bankruptcy Code, cease as amended; or is adjudicated bankrupt, makes an assignment for the benefit of creditors, or applies for or consents to the appointment of any receiver or trustee of all or any part of its property including all or any parts of its business Operations or Facilities within or affecting the Franchise Area. Upon the foreclosure or other judicial sale of all or a substantial part of Grantee's business Operations, pipeline(s) or Facilities within or affecting the Franchise Area, or upon the occasion of additional events which effectively cause termination of Grantee's rights or ability to Operate the Facilities within or affecting the Franchise Area, Grantee shall notify the Grantor of such fact, and terminate such notification or the occurrence of such terminating events shall be treated as a notification that a change in control of the Grantee has taken place, and the provisions of this Franchise Agreement governing the consent of the Grantor to such change in control of the Grantee shall apply. The Grantor shall have the right to cancel this Franchise one hundred twenty (120) days after the appointment of a receiver or receivers, or trustee or trustees, to take over and conduct the business of the a Grantee, whether in a receivership, reorganization, bankruptcy, or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120) days, or unless such receivers or trustees shall have, within unless: A. Within one hundred twenty (120) days after their the election or appointment, such receiver or trustee shall have fully complied with all of the terms and provisions of this Franchise, Franchise Agreement and the receivers or trustees, within remedied any existing violations and/or Defaults; and B. Within said one hundred twenty (120) days, such receiver or trustee shall have remedied all defaults under the Franchise; and such receivers or trustees shall, within said one hundred twenty (120) days, execute executed an agreement, duly approved by the court having jurisdiction of the premisesjurisdiction, whereby such receivers receiver or trustees assume trustee assumes and agree agrees to be bound by each and every term, provisions and limitation provision of this Franchise. b. In the case of a foreclosure or other judicial sale or transfer in lieu thereof of the plant, property and equipment of Franchise Agreement granted to the Grantee or any part thereof, including or excluding the Franchise, the Grantors may serve notice of termination upon the Grantee and the successful bidder at such sale or proposed transferee, in which event the Franchise and all rights and privileges of the Grantee granted hereunder shall cease and terminate one hundred twenty (120) days after service of such notice unless the Grantors shall have approved the transfer of the Franchise pursuant to section 19. Provided, however, that if such transferee is a prior secured party pursuant to section 19.a to whom the transfer has been made in lieu of foreclosure or as a result of a foreclosure or other judicial sale or is a successful bidder at foreclosure or other judicial sale whom the Grantors has not approved pursuant to Section 19, the transferee shall be permitted to continue operating the system for twelve months from the date of such transfer, while actively seeking another operator meeting Grantors' requirements for approval, if the transferee shall have covenanted and agreed with the Grantors to assume and be bound except where expressly prohibited by all of the terms and conditions of the Franchise reasonably applicable under the conditions and circumstances existing during said twelve month periodWashington law.