Common use of State Obligation Clause in Contracts

State Obligation. 12.1. The parties recognize that the performance by the ABOR for and on behalf of the University may be dependent upon the appropriation of funds by the State Legislature of Arizona. Should the State Legislature of Arizona fail to appropriate the necessary funds or if the University's appropriation is reduced during the fiscal year, the ABOR may reduce the scope of this Agreement if appropriate or cancel this Agreement without further duty or obligation. The ABOR agrees to notify other party(ies) as soon as reasonably possible after the unavailability of said funds comes to the ABOR's attention.