Common use of DEFAULT BY THE BUILDER Clause in Contracts

DEFAULT BY THE BUILDER. The BUILDER shall be deemed to be in default under this CONTRACT ; (i) If the BUILDER shall apply for or consent to the appointment of a receiver, trustee or liquidator, shall be adjudicated insolvent, shall apply to the courts for protection from its creditors, file a voluntary petition in bankruptcy or take advantage of any insolvency law, or any action shall be taken by the BUILDER having an effect similar to any of the foregoing or the equivalent thereof in any jurisdiction, or the BUILDER shall be unable to pay its debts as they fall due and following the occurrence of any of the foregoing events and for as long as they are continuing, there has been then a delay of more than fifty (50) days in the commencement of steel cutting or the completion of keel laying or launching after the due date as specified in the construction schedule agreed by the BUYER. (ii) If the BUILDER, without reasonable excuse, delays in the commencement or progress of the construction of the VESSEL for a period of one hundred (100) days or more and the BUILDER has not rectified the same within fourteen (14) days of being notified by the BUYER of such delay. (iii) If the refund guarantee is not issued within thirty (30) days from the date of this CONTRACT. In the event of such BUILDER’s default the BUYER may then cancel this CONTRACT by promptly notifying the BUILDER in writing but not later than two (2) weeks from the date the BUYER becomes aware of the BUILDER’s default. Such cancellation is to be effective as of the date when such notice of cancellation is received by the BUILDER.

DEFAULT BY THE BUILDER. The BUILDER shall be deemed to be in default under this CONTRACT ; (i) If the BUILDER shall apply for or consent to the appointment of a receiver, trustee or liquidator, shall be adjudicated insolvent, shall apply to the courts for protection from its creditors, file a voluntary petition in bankruptcy or take advantage of any insolvency law, or any action shall be taken by the BUILDER having an effect similar to any of the foregoing or the equivalent thereof in any jurisdiction, jurisdiction or there is possibility of occurrence of any of foregoing events due to the BUILDER shall be unable BUILDER’s inability to pay its debts as they fall due and following the occurrence of any of the foregoing events and for as long as they are continuing, there has been then a delay of more than fifty (50) days in the commencement of steel cutting or the completion of keel laying or launching after the due date as specified in the construction schedule agreed by the BUYERdue. (ii) If the BUILDER, without reasonable excuse, delays in suspends the commencement or progress of the construction of the VESSEL for a period of one hundred (100) days or more and the BUILDER has not rectified the same within fourteen (14) days of being notified by the BUYER of such delay. (iii) If the refund guarantee is not issued within thirty (30) days from the date of this CONTRACTCONTRACT or if the refund guarantee is not maintained in accordance with the terms and conditions of this CONTRACT and the BUILDER fails to provide the BUYER with a replacement refund guarantee from a first class bank acceptable to the BUYER (acting reasonably) . In the event of such BUILDER’s default the BUYER may then cancel this CONTRACT by promptly notifying the BUILDER in writing but not later than two (2) weeks from the date the BUYER becomes aware of the BUILDER’s default. Such cancellation is to be effective as of the date when such notice of cancellation is received by the BUILDER.

DEFAULT BY THE BUILDER. The BUILDER shall be deemed to be in default under this CONTRACT CONTRACT; (i) If the BUILDER shall apply for or consent to the appointment of a receiver, trustee or liquidator, shall be adjudicated insolvent, shall apply to the courts for protection from its creditors, file a voluntary petition in bankruptcy or take advantage of any insolvency law, or any action shall be taken by the BUILDER having an effect similar to any of the foregoing or the equivalent thereof in any jurisdiction, or the BUILDER shall be unable to pay its debts as they fall due and following the occurrence of any of the foregoing events and for as long as they are continuing, there has been then a delay of more than fifty (50) days in the commencement of steel cutting or the completion of keel laying or launching after the due date as specified in the construction schedule agreed by the BUYER. (ii) If the BUILDER, without reasonable excuse, delays in the commencement or progress of the construction of the VESSEL for a period of one hundred (100) days or more and the BUILDER has not rectified the same within fourteen (14) days of being notified by the BUYER of such delay. (iii) If the refund guarantee is not issued within thirty (30) days from the date of this CONTRACT. In the event of such BUILDER’s default the BUYER may then cancel this CONTRACT by promptly notifying the BUILDER in writing but not later than two (2) weeks from the date the BUYER becomes aware of the BUILDER’s default. Such cancellation is to be effective as of the date when such notice of cancellation is received by the BUILDER.

DEFAULT BY THE BUILDER. The BUILDER shall be deemed to be in default under this CONTRACT ;Events of Builder's Default (i) If 18.1. In the BUILDER shall apply for or consent to the appointment of a receiver, trustee or liquidator, shall be adjudicated insolvent, shall apply to the courts for protection from its creditors, file a voluntary petition in bankruptcy or take advantage of any insolvency law, or any action shall be taken by the BUILDER having an effect similar to event that any of the foregoing or following events should occur:- a. the equivalent thereof in Builder shall commit any jurisdiction, or the BUILDER material breach of this Contract and shall be unable have failed to pay its debts as they fall due and following the occurrence of any of the foregoing events and for as long as they are continuing, there has been then a delay of more than fifty (50) days in the commencement of steel cutting or the completion of keel laying or launching after the due date as specified in the construction schedule agreed by the BUYER. (ii) If the BUILDER, without reasonable excuse, delays in the commencement or progress of the construction of the VESSEL for a period of one hundred (100) days or more and the BUILDER has not rectified commence action to remedy the same within fourteen (14) days of being notified Working Days from receipt by the BUYER Builder of written notice from the Purchaser specifying such delay.breach; or b. the making of any order or the passing of an effective resolution for the winding-up of the Builder (iii) other than for the purposes of reconstruction or amalgamation which has been previously approved in writing by the Purchaser), or the appointment of a receiver of the undertaking or property of the Builder, or the insolvency of or a suspension of payment by the Builder, or the cessation of the carrying on of business by the Builder, or the making by the Builder of any special arrangement or composition with creditors of the Builder, the Purchaser may elect to terminate this Contract. If the refund guarantee is not issued within thirty (30) days from Purchaser elects to terminate this Contract, then the date of this CONTRACT. In the event of such BUILDER’s default the BUYER may then cancel this CONTRACT by promptly notifying the BUILDER Purchaser shall give notice in writing but not later than two to the Builder that the Purchaser regards this Contract as terminated in which case the provisions of Clause 18.2 below shall apply. Such notice shall be effective from receipt thereof by the Builder. Termination by the Purchaser 18.2. If, in accordance with (1) the provisions of Clause 18.1 above or (2) weeks from the date the BUYER becomes aware Clause 15.2 above or (3) Clause 14.4 above or (4) any other right it may have by reason of the BUILDER’s default. Such cancellation is Builder's breach of contract, the Purchaser exercises its right to be effective as terminate this Contract, then the Builder shall promptly repay to the Purchaser the amount of all monies paid by the Purchaser on account of the Contract Price together with interest thereon at the rate of one and a half percent (1.5%) above LIBOR from the date when such notice of cancellation is received monies were paid by the BUILDERPurchaser to the Builder up to the date of the repayment thereof Provided Always that in the event of a termination in accordance with Clause 14.4 the Builder shall not be required to pay the aforesaid interest on the Contract Price. All interest hereunder shall be calculated on the basis of a three hundred and sixty (360) day year and compounded monthly and shall be paid on the date when payment is made of the sum on which such interest is accrued. The Builder shall also redeliver to the Purchaser at the Shipyard all of the Owner Furnished Equipment delivered to the Builder. The Builder shall have no other obligations or liability to the Purchaser save for those contained in this Clause 18.2. Non-payment by the Builder 18.3. Should the Builder default in payment of any amount due under this Contract (including, without limitation, payment of liquidated damages), then the Builder shall pay to the Purchaser interest thereon at the rate of one and a half percent (1.5%) over LIBOR from the date when the amount became due to the Purchaser to the date of the payment thereof. All interest hereunder shall be calculated on the basis of a three hundred and sixty (360) day year and compounded monthly and shall be paid on the date when payment is made of the sum on which such interest is accrued. 18.4. It is expressly understood and agreed by the Parties that if the Purchaser terminates this Contract for any reason, the Purchaser shall not be entitled to any liquidated damages, or to any other damages or other remedy, except as expressly provided in this Contract.