Common use of CONVERSION OF SECURITY DEPOSIT Clause in Contracts

CONVERSION OF SECURITY DEPOSIT. 40(1) If the work is taken out of the Contractor's hands pursuant to section 16 or if the Contract is terminated pursuant to section 19 or if the Contractor is in breach of or in default under the Contract, the Owner may negotiate the security deposit, in the case of bonds, or convert the security deposit to the Owner's own use, in the case of money, and the amount realized by the Owner shall be deemed to be a debt by the Owner to the Contractor and the Owner shall have the right of set-off and may set-off against the debt any sum or amount which the Contractor may be liable to pay to the Owner and the balance of the debt, if any, after the right of set-off has been exercised, shall if such balance, in the opinion of the Engineer-Architect, is not required for the purpose of the Contract and subject always to the provisions of section 20 be paid by the Owner to the Contractor.

CONVERSION OF SECURITY DEPOSIT. 40(1) If the work Work is taken out of the Contractor's ’s hands pursuant to section 16 or if the Contract is terminated pursuant to section 19 or if the Contractor is in breach of or in default under the Contract, the Owner may negotiate the security depositSecurity Deposit, in the case of bonds, or convert the security deposit Security Deposit to the Owner's ’s own use, in the case of money, and the amount realized by the Owner shall be deemed to be a debt by the Owner to the Contractor and the Owner shall have the right of set-off and may set-off against the debt any sum or amount which the Contractor may be liable to pay to the Owner and the balance of the debt, if any, after the right of set-off has been exercised, shall if such balance, in the opinion of the Engineer-ArchitectOwner’s Representative, is not required for the purpose of the Contract and subject always to the provisions of section 20 be paid by the Owner to the Contractor.