Default Proceedings Clause Samples
The Default Proceedings clause outlines the steps and procedures that will be followed if one party fails to fulfill its contractual obligations, known as a default. Typically, this clause specifies the actions the non-defaulting party may take, such as providing notice of default, allowing a cure period, and, if unresolved, pursuing remedies like termination or legal action. Its core practical function is to provide a clear, structured process for addressing breaches, thereby protecting the interests of both parties and minimizing uncertainty in the event of non-performance.
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Default Proceedings. The Claimant will not institute proceedings against a defaulting Party, nor be entitled to damages if the defaulting Party within fifteen (15) days from receipt of the written notice of default set forth in Section 8.01, commences with due diligence to cure, correct or remedy such failure or delay and completes such cure, correction or remedy within thirty (30) days from the date of receipt of such notice; or if such cure, correction or remedy by its nature cannot be effected within such thirty (30) day period, such cure, correction or remedy is diligently and continuously prosecuted until completion thereof.
Default Proceedings. (a) Neither Party shall institute proceedings against a defaulting Party, nor be entitled to damages if the defaulting Party, within thirty (30) days from receipt of the written notice of default set forth in Section 10.01, commences with due diligence to cure, correct or remedy such failure or delay and completes such cure, correction or remedy within sixty (60) days from the date of receipt of such notice; or if such cure, correction or remedy by its nature cannot be effected within such sixty (60) day period, such cure, correction or remedy is diligently and continuously prosecuted until the completion thereof.
(b) If the Developer fails to cure, correct or remedy a default within the aforementioned sixty (60) day period set forth in Section 10.02(a), or if such cure, correction or remedy cannot be effected within such sixty (60) day period, Developer fails to commence such cure, correction or remedy, or fails to diligently pursue the same to completion, then the City may re-send such written notice of default to the Developer, with the following statement in bold at the beginning of such notice “WARNING: SECOND NOTICE OF DEFAULT. Failure to respond to this request within thirty (30) days shall be an Event of Default.” The City shall not institute proceedings against the Developer, nor be entitled to damages or re-conveyance of any portion of the Development Site unless the Developer fails to cure, correct or remedy such default within such thirty (30) day period or, if such cure, correction or remedy cannot be effected within such thirty (30) day period, Developer fails to commence such cure, correction or remedy, or fails to diligently pursue the same to completion.
(c) Notwithstanding anything to the contrary in the foregoing, the failure of Developer to perform within the cure period set forth in a Final Performance Notice in accordance with Section 3.05(d) hereof shall be considered an Event of Default.
(d) Any cure effected by a lender or mortgagee of Developer shall be accepted by the City as if effected by the Developer as set forth in Section 10.08 below.
Default Proceedings. 21.1. If the Contractor neglects to execute the Work with due diligence or defaults in the performance or observance of any condition or stipulation contained in this Agreement or refuses or neglects to carry out any instruction which the Client is entitled to give under this Agreement the Client may call upon the Contractor by notice in writing to show cause.
21.2. Such notice shall not unreasonably be given and must identify the default on the part of the Contractor upon which it is based. If, within seven days after receipt of the notice in writing, the contractor fails to provide the Work or part of the Work, within a reasonable time fails to satisfactorily complete the Work the Client may exercise all or any of the following powers:
21.2.1. Suspend payment under the contract until the default is rectified; or
21.2.2. Cancel the Contract by notice which will take effect from the date of the notice and the cancellation shall be without prejudice to any right that may have accrued to the Client or the Contractor under this Agreement.
Default Proceedings. 16 Section 7.03. Remedies on Default 16 Section 7.04. Legal Actions. 17 Section 7.05. Rights and Remedies are Cumulative. 18 Section 7.06. Inaction Not a Waiver of Default. 18 Section 7.07. Enforced Delay; Extension of Times of Performance. 18
Default Proceedings. In the event of a Default, the following procedures shall apply:
a) Notification in writing of the Participant’s Default shall be sent to all Covered Clients, the Trust and applicable Regulatory Agencies and ESAC Surety(ies).
b) Initiation of procedures to fulfill the obligations of ESAC and the Trust under the affected Client Participation Certificates (Attachment A).
c) Initiation of procedures to recover any claim-related losses.