Common use of Application of Money Drawn Clause in Contracts

Application of Money Drawn. The Vendor must apply money drawn from the Bond Account, so far as the money will extend: (1) to discharge the outstanding Purchaser obligation/s; (2) to do anything else that the Vendor reasonably considers necessary to mitigate the damaging effects of incomplete or improperly completed work performed by or for the Purchaser; and (3) to compensate itself for damages suffered as a result of the Purchaser’s breach of covenant.