Default in Construction Clause Samples

Default in Construction. At any time prior to Completion, the Project shall be abandoned or work thereon shall cease for a period of more than thirty (30) days (which period shall be measured from the first occurrence of a work stoppage and continuing until work of a substantial nature is resumed and thereafter diligently continued, but which period shall not include delays caused by Force Majeure and strikes not extending for any one work stoppage or abandonment beyond 30 days so long as an independent engineer, selected by Borrower and subject to Lender's approval, has certified that Completion is not likely to be achieved beyond the applicable Construction Loan Maturity Date, provided that Borrower gives Lender immediate written notice of all such events) for any reason, or the Project shall not be constructed substantially in accordance with the Plans and Specifications (except as to changes therein approved by the Lender or permitted by Section 6.12), or changes shall be made in the Plans and Specifications without the prior written approval of the Lender (except as to changes permitted by Section 6.12).

Default in Construction. If at any time prior to the completion of the construction and equipping of the Improvements the same shall be abandoned or work thereon shall cease for any cause or causes other than those permitted by the Construction Contract, or if the Improvements are not completed for purposes of final payment (as provided in Section 4.4) prior to the Completion Date described in Section 5.1, whichever is the first to occur, regardless of the reason for the delay, or if the Improvements shall not be constructed and equipped substantially in accordance with the Plans and Specifications (except as to changes therein approved by the Lender or permitted by Section 5.5), or if changes shall be made in the Plans and Specifications without the Lender’s prior written approval (except as to changes permitted by Section 5.5), or if the Borrower shall fail in any respect to comply with the provisions of this Agreement, then, and in any such event, the Lender, at its option, may refuse to make further advances, may accelerate the indebtedness under the Note and other Loan Documents as provided in Section 7, and in addition, without thereby impairing any of the rights, powers or privileges of the Lender under any of the Loan Documents, may enter into possession of the construction site and perform any and all work and labor necessary to complete the Improvements substantially according to the Plans and Specifications, and all sums expended by the Lender in so doing, including, but not limited to, a construction supervision fee, payable to the Lender, up to ten percent (10%) of all such sums, shall be deemed to be paid for the account of the Borrower and secured by the Mortgage and the Security Agreement, notwithstanding that such expenditures (including such fee) may exceed the amount of the loan or the cost of the Construction Contract or any other contracts. For this purpose, the Borrower hereby constitutes and appoints the Lender its true and lawful attorney-in-fact, with full power of substitution, to complete such construction and equipping in the name of the Borrower, and hereby empowers such attorney or attorneys: (a) To use any of the Loan proceeds and any Equity Funds which may remain unadvanced for the purpose of completing the construction and equipping in the manner called for by the Plans and Specifications; (b) To make such changes and corrections in the Plans and Specifications as shall be necessary or desirable to complete the construction in substantially the man...

Default in Construction. In the event the Developer, the General Contractor, or the Architect shall fail to perform in accordance with the provisions of any of the Construction Documents to which it is a party in connection with the design, acquisition, construction, furnishing, and/or equipping of the Project, the Lessee shall exercise all of the rights and remedies available to the Lessee in each such Construction Document(s) in consultation with the Lessor. If an Event of Default shall occur and be continuing or if the Lessee shall default under the Development Agreement, the Lessor may, subject to the rights of the Trustee and the provisions of Sections 12(a) and 36(i) hereof, assert the rights of the Lessee under the terms of the [Development Agreement], the Construction Contract, and the Architect's Agreement.

Default in Construction. In the event of a default by the Developer, the Contractor, or the Architect in connection with the design and/or construction of the Series 2022 Project or by any party to any design or construction documents related to any Additional Improvements, subject to the rights of the Issuer and the Trustee under the Bond Documents, the Lessee shall exercise all of the rights and remedies available to the Lessee in each such agreement, and shall consult with Lessor regarding the same. If Lessee shall fail to exercise such remedies, an Event of Default shall occur and be continuing, or the Lessee shall default under the Construction Documents or any design or construction documents related to Additional Improvements to be constructed by Lessee on the Property, the Lessor may, subject to the rights of the Issuer and the Trustee under the Bond Documents, and without limiting any other rights and remedies of the Lessor under this Ground Lease or at law and in equity, assert the rights of the Lessee under the terms of the Construction Documents or such other design and construction documents, as the case may be.

Default in Construction. In the event of a material default by the Developer or the Architect under the Development Agreement or the Design Services Agreement, respectively, or of any party to any design or construction documents related to the Improvements and any Additional Improvements, subject to the rights of the Trustee under the Bond Documents, the