Common use of Security for Costs Clause in Contracts

Security for Costs. 1. Upon request of a disputing party, the arbitral tribunal may order any disputing party asserting a claim or counterclaim to provide security for costs. 2. In determining whether to order a disputing party to provide security for costs, the arbitral tribunal shall consider all relevant circumstances, including: (a) that disputing party’s ability to comply with an adverse decision on costs; (b) that disputing party’s willingness to comply with an adverse decision on costs; (c) the effect that providing security for costs may have on that disputing party’s ability to pursue its claim or counterclaim; and (d) the conduct of the disputing parties. 3. The arbitral tribunal shall specify any relevant terms in an order to provide security for costs and shall fix a time limit for compliance with the order. 4. If a disputing party fails to comply with an order to provide security for costs within 30 days after the arbitral tribunal’s order or within any other time period set by the arbitral tribunal, the arbitral tribunal may suspend the proceeding. If the proceeding is suspended for more than 90 days, the arbitral tribunal may, after consulting with the disputing parties, order the discontinuance of the proceeding. 5. A disputing party shall promptly disclose any material change in the circumstances upon which the arbitral tribunal ordered security for costs. 6. The arbitral tribunal may at any time modify or revoke its order on security for costs, on its own initiative or upon a disputing party’s request.

Security for Costs. 1. Upon request of a disputing party, the arbitral tribunal may order any disputing party asserting a claim or counterclaim to provide security for costs. 2. In determining whether to order a disputing party to provide security for costs, the arbitral tribunal shall consider all relevant circumstances, including: (a) that disputing party’s 's ability to comply with an adverse decision on costs; (b) that disputing party’s 's willingness to comply with an adverse decision on costs; (c) the effect that providing security for costs may have on that disputing party’s 's ability to pursue its claim or counterclaim; and (d) the conduct of the disputing parties. 3. The arbitral tribunal shall specify any relevant terms in an order to provide security for costs and shall fix a time limit for compliance with the order. 4. If a disputing party fails to comply with an order to provide security for costs within 30 days after the arbitral tribunal’s 's order or within any other time period set by the arbitral tribunal, the arbitral tribunal may suspend the proceeding. If the proceeding is suspended for more than 90 days, the arbitral tribunal may, after consulting with the disputing parties, order the discontinuance of the proceeding. 5. A disputing party shall promptly disclose any material change in the circumstances upon which the arbitral tribunal ordered security for costs. 6. The arbitral tribunal may at any time modify or revoke its order on security for costs, on its own initiative or upon a disputing party’s 's request.