Defaults Under Construction Contracts. In the event of any material default by a contractor under any of the constructions contracts, or in the event of a material breach of warranty with respect to any materials, workmanship or performance, the County shall promptly proceed, either separately or in conjunction with others, to pursue diligently its remedies against such contractor, vendor and/or against each surety of any bond securing the performance of the construction contracts. So long as no Event of Default shall have occurred hereunder, the County shall have the right to determine the remedies to be exercised against any such contract or surety. The net proceeds of any amounts recovered by way of damages, refunds, adjustments or otherwise in connection with the foregoing, remaining after deduction of expenses incurred in such recovery (including, without limitation, attorneys’ fees and costs), and after reimbursement to the County of any amounts theretofore paid by the County and not previously reimbursed to the County for correcting or remedying the default or breach of warranty which gave rise to the proceedings against the contractor or surety, shall be paid to BB&T for deposit into the Project Fund.
Defaults Under Construction Contracts. In the event of any material default by a contractor or subcontractor under any of the Construction Contracts, or otherwise in connection with the Facilities, or in the event of a material breach of warranty with respect to any materials, workmanship or performance, the Lessee shall promptly proceed, either separately or in conjunction with others, to pursue diligently its remedies against such contractor or subcontractor and/or against each surety of any bond securing the performance of the Construction Contracts or otherwise in connection with the Facilities. So long as no event of default shall have occurred under the Indenture, the Lessee shall have the right to determine the remedies to be exercised against any such contractor, subcontractor or surety. The Net Proceeds of any amounts recovered by way of damages, refunds, adjustments or otherwise in connection with the foregoing, remaining after deduction of expenses incurred in such recovery (including, without limitation, attorneys' fees and costs), and after reimbursement to the Lessee of any amounts theretofore paid by the Lessee and not previously reimbursed to the Lessee for correcting or remedying the default or breach of warranty which gave rise to the proceedings against the contractor or surety, shall be paid to the Trustee for deposit into the Project Fund if received before the Completion Date therefor, or if received thereafter, shall be applied as provided in Section 5.3 (c) of this Lease.
