Subcontractor Default Insurance/Bonding. During any period of construction of the Improvements, the Contractor shall either maintain Subcontractor Default Insurance for all subcontractors with contract values greater than $500,000 (other than Axxxxxxx Sxxxx & Tile) with limits of no less than $50,000,000 per claim and $100,000,000 in the aggregate and include a “Financial Interest Endorsement” naming Lender as insured party. If a subcontractor (which is not a Major Subcontractor and other than Axxxxxxx Stone & Tile) is not eligible for coverage under the Subcontractor Default Insurance, such subcontractor will be required to provide Payment and Performance Bonds acceptable to Lender. If the Contractor does not have a Subcontractor Default Insurance policy to utilize at the Project, the Contractor shall provide Payment and Performance Bonds in the amount of 100% of the full contract value. This requirement does not apply to contractors performing renovations or updates to the Improvements upon Substantial Completion of the Project and Construction Work.
