Common use of Defaults, Acts of Bad Faith and Early Termination; Remedies for and Effects of Defaults Clause in Contracts

Defaults, Acts of Bad Faith and Early Termination; Remedies for and Effects of Defaults. Acts of Bad Faith and Early Termination A. The following constitute events of default by HFA or Eligible Entity under this Agreement (each, an “Event of Default” and, collectively, the “Events of Default”): (1) HFA or Eligible Entity breaches a covenant under this Agreement or fails to perform or comply with any of its obligations under this Agreement in any material respect, including any additional request made by Treasury as authorized herein, or the Financial Instrument, including, but not limited to, circumstances in which Eligible Entity fails to ensure that all eligibility criteria and other conditions precedent specified in this Agreement or EESA are satisfied prior to accepting any portion of the Purchase Price and/or effectuating any Services in connection with the HHF Program. (2) HFA is dissolved or its existence as a unit or instrumentality of state government is terminated (unless HFA’s duties, responsibilities and obligations as the state’s housing finance agency, including specifically its duties, responsibilities and obligations under this Agreement, are transferred to and assumed by a successor state unit or instrumentality of state government approved by Treasury). (3) Eligible Entity is dissolved or its legal existence is terminated (unless Eligible Entity’s duties, responsibilities and obligations under this Agreement, are transferred to and assumed by a successor entity approved by Treasury).