Default in Contractors' Performance. (a) In the event of default of the Contractor, including any subcontractor, under any Development Contract made in connection with any Project, the Lessee shall promptly proceed, either separately or in conjunction with others, to exhaust the remedies of the Lessee against the Contractor or any subcontractor so in default and against each surety for the performance of such Contractor or subcontractor. All such actions shall be construed to be Costs of the Project for purposes of this Company Lease Agreement, inasmuch as the same shall be necessary to enable any such Project to be designed, permitted, constructed, acquired, renovated or installed in accordance with the terms hereof and of the Development Contracts. The Lessee agrees to advise the Lessor, in writing, of the steps it intends to take in connection with any such default. If the Lessee shall so notify the Lessor, the Lessor may, in good faith, in its own name or in the name of the Lessee, with notice to the Lessee, prosecute or defend any action or proceeding or take such other action involving the Contractor, including any subcontractor, or surety that the Lessor deems reasonably necessary, and in such event the Lessor hereby agrees to cooperate fully with the Lessee, but at the sole cost and expense of the Lessor. Any amounts recovered by way of damages, refunds, adjustments or otherwise in connection with the foregoing shall be paid into the Project Fund or the Revenue Fund, as shall be determined by the Lessee.
(b) In the event that the Lessee is unable to comply with its requirements under this Company Lease Agreement prior to the execution of any Acceptance Certificate or if for any reason the design, permitting, acquisition, construction, renovation and installation of any Project is delayed, there shall be no resulting liability on the part of the Lessor and there shall be no diminution in or postponement of the amounts that are due and payable by the Lessee to the Lessor under the terms of this Company Lease Agreement.
Default in Contractors' Performance. In the event of default of any contractor or subcontractor under any construction contract in connection with the Project, the County will promptly proceed, either separately or in conjunction with others, to exhaust the remedies of the Authority or the County, as agent for the Authority, against the contractor or
Default in Contractors' Performance. In the event of default of any contractor or subcontractor under any contract for the Financed Projects, the City shall promptly proceed, either separately or in conjunction with others, to exhaust the remedies of the Authority or the City, as appropriate, against the contractor or subcontractor so in default and against each surety for the performance of such contractor. The City agrees to advise the Authority, in writing, of the steps it intends to take in connection with any such default. The City may, in good faith, in its own name or in the name of the Authority, prosecute or defend any action or proceeding or take other action involving any such contractor, subcontractor or surety which the City deems reasonably necessary, and in such event the Authority agrees to cooperate fully with the City. Unless some other disposition is approved by the City, amounts recovered by way of damages, refunds, adjustments or otherwise in connection with the foregoing will be paid into the Project Fund established under the Indenture to be applied to pay the Costs relating to the Financed Projects or, if recovered after completion of the Financed Projects, will be paid to the City.
Default in Contractors' Performance. In the event of default of any contractor or subcontractor under any contract made in connection with a particular Facility or Facilities, each School Party will exhaust its remedies against the contractor or subcontractor so in default and against each surety for the performance of such contractor. Any amounts recovered by way of damages, refunds, adjustments or otherwise in connection with the foregoing shall be paid into the Project Fund.
