Common use of Recourse to Statutory and Performance Bonds Clause in Contracts

Recourse to Statutory and Performance Bonds. Upon the occurrence of a Design/Builder Event of Default and termination of this Agreement by the Owner, the Owner may call upon the Surety to perform its/their obligations under the Statutory and Performance Bonds, if applicable. The Owner agrees that, so long as the Surety shall not be in default under the Statutory and Performance Bonds, the Owner shall not exercise its rights to correct deficiencies, take over the Work or complete the Work and deduct an amount equal to expenditures incurred by the Owner in so doing.