This form provides boilerplate contract clauses that outline means of securing the funds for payment of any indemnity, including use of an escrow fund or set-offs.
Kings New York Indemnity Provisions serve as a crucial aspect of contracts, intended to protect the party against potential liabilities that may arise from certain actions or circumstances. These provisions outline the means of securing the payment of the indemnity, which ensures that the obligated party fulfills their financial responsibility in case of a breach or loss. There are various types of Kings New York Indemnity Provisions that can be employed to secure the payment of the indemnity. Here are some common variations: 1. Cash Deposit: In this type of provision, the obligated party is required to make a cash deposit or upfront payment, serving as a security against potential indemnification claims. The amount is typically agreed upon by both parties and held in a designated account until the contract's termination or expiration. 2. Performance Bonds or Guarantees: This provision involves obtaining a performance bond or guarantee from a third party, such as a financial institution or insurance company. The bond or guarantee acts as a form of surety, assuring the indemnified party that they will receive the necessary compensation if a breach occurs. 3. Letter of Credit: This provision involves the issuance of a letter of credit by a bank on behalf of the obligated party. A letter of credit serves as a guarantee of payment, ensuring that the indemnified party can draw funds from the bank in the event of a breach or loss. 4. Collateral: Another means of securing the payment of the indemnity is through collateral. The obligated party may provide valuable assets, such as property or securities, as collateral to guarantee their financial obligation. These assets can be seized or sold to cover the indemnity in case of breach. 5. Insurance: Depending on the nature of the contract, the obligated party may be required to obtain appropriate insurance coverage as a means of securing the indemnity. This type of provision helps ensure that the indemnified party can be compensated from the insurance company if a loss or liability occurs. To sum up, Kings New York Indemnity Provisions — Means of Securing the Payment of the Indemnity encompass a range of strategies aimed at protecting the indemnified party. Through mechanisms like cash deposits, performance bonds, letters of credit, collateral, or insurance, parties can establish a secure means of payment that safeguards against potential breaches and losses.Kings New York Indemnity Provisions serve as a crucial aspect of contracts, intended to protect the party against potential liabilities that may arise from certain actions or circumstances. These provisions outline the means of securing the payment of the indemnity, which ensures that the obligated party fulfills their financial responsibility in case of a breach or loss. There are various types of Kings New York Indemnity Provisions that can be employed to secure the payment of the indemnity. Here are some common variations: 1. Cash Deposit: In this type of provision, the obligated party is required to make a cash deposit or upfront payment, serving as a security against potential indemnification claims. The amount is typically agreed upon by both parties and held in a designated account until the contract's termination or expiration. 2. Performance Bonds or Guarantees: This provision involves obtaining a performance bond or guarantee from a third party, such as a financial institution or insurance company. The bond or guarantee acts as a form of surety, assuring the indemnified party that they will receive the necessary compensation if a breach occurs. 3. Letter of Credit: This provision involves the issuance of a letter of credit by a bank on behalf of the obligated party. A letter of credit serves as a guarantee of payment, ensuring that the indemnified party can draw funds from the bank in the event of a breach or loss. 4. Collateral: Another means of securing the payment of the indemnity is through collateral. The obligated party may provide valuable assets, such as property or securities, as collateral to guarantee their financial obligation. These assets can be seized or sold to cover the indemnity in case of breach. 5. Insurance: Depending on the nature of the contract, the obligated party may be required to obtain appropriate insurance coverage as a means of securing the indemnity. This type of provision helps ensure that the indemnified party can be compensated from the insurance company if a loss or liability occurs. To sum up, Kings New York Indemnity Provisions — Means of Securing the Payment of the Indemnity encompass a range of strategies aimed at protecting the indemnified party. Through mechanisms like cash deposits, performance bonds, letters of credit, collateral, or insurance, parties can establish a secure means of payment that safeguards against potential breaches and losses.
