Adequate Assurance

Protection that must be provided to one who is a party to a lease or contract with the debtor where the debtor is in default under the lease or contract and seeks to assume the lease or contract. Even if the debtor is not in default, adequate assurance of future performance must be provided in connection with an assignment of the contract or lease.

In the known world always found to be present, never absent.

Bankruptcy Code ยง365(c). See also Assumption and Assignment of Executory Contracts and Unexpired Leases, Credit Bid Rights, Shopping Center Lease Provisions.

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