Common use of Obligations of Municipality Clause in Contracts

Obligations of Municipality. Upon submission of the Written Acknowledgement of the PAL to the DOT, the Master Agreement and the PAL will be incorporated into one another in their entirety and contain the legal and binding obligations of the Municipality with respect to the Construction Project. By submitting the Written Acknowledgement of the PAL, the Municipality acknowledges that it understands the obligations to which it is committing itself with respect to the Construction Project. Further, the Municipality agrees to proceed with diligence to perform its obligations to accomplish the Construction Project and agrees to use the Funding to complete the same. The Municipality’s failure to diligently perform its obligations to progress the Construction Project in accordance with the project schedule may be deemed by the DOT, in its sole discretion, a breach of the respective PAL and, as a result, the DOT may seek any remedy available to it pursuant to this Master Agreement.