Common use of DEFINITION OF BUILDER’S DEFAULT Clause in Contracts

DEFINITION OF BUILDER’S DEFAULT. The Builder shall be deemed to be in default of its obligations under this Contract if:- (i) the Builder shall commit a major breach of any term of this Contract which significantly affects performance of the Builder’s obligations under this Contract and shall fail to remedy such breach within thirty (30) days of receiving written notice thereof from the Buyer and in any event before delivery of the Vessel (unless the Builder disputes that there is such a breach and has referred the matter to arbitration); and/or (ii) if the Builder shall apply for or consent to the appointment of a receiver, trustee or liquidator, shall be adjudicated, insolvent, shall apply to the courts for protection from its creditors, file a voluntary petition in bankruptcy or take advantage of any insolvency law, or any action shall be taken by the Builder having an effect similar to any of the foregoing or the equivalent thereof in any jurisdiction; and/or (iii) the occurrence of any of the events set out in sub-paragraph (ii) above with respect to the Refund Guarantor, and the failure by the Builder within ninety (90) days thereof to replace the Refund Guarantee with that of an alternative guarantor reasonably acceptable to the Buyer.