Outline Construction Contractor Direct Agreement Page 10
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20Lender/Security Trustee/Agent] notifies the Lead Authority of the occurrence
of the Cut Off Date pursuant to the Financier’s Direct Agreement (if
applicable).
3.5.3 During the Step-In Period the Construction Contractor confirms to the Lead
Authority that it shall only be entitled to exercise its right of termination under
the Construction Contract:-
(A)
by reference to an event arising during (rather than before) the Step-In
Period (and for the purposes of this Clause, where an act or omission
giving rise to the commencement of a remedy period provided for in
the Construction Contract occurs prior to, and remains unremedied by,
the Step-In-Date, the said act or omission shall be deemed to be an
event arising during the Step-In Period but the remedy period in
relation thereto shall be deemed to commence on the Step-In-Date),
provided that the following events (notwithstanding that they have
occurred during the Step-In Period) shall not entitle the Construction
Contractor to exercise such rights of termination during the Step-In
Period:-
(1)
any event of default of the Contractor under the Construction
Contract; or
(2)
an event which is a breach of the Construction Contract and
which is capable of remedy and is remedied within any relevant
remedy period set out in the Construction Contract; or
(B)
if the Lead Authority fails in a material respect to perform or discharge
when falling due for performance or discharge any obligation under
the Step-In Undertaking or fails to procure such performance or
discharge; or
(C)
if such rights of termination arise in circumstances where there is no
default under the Step-In Undertaking by the Lead Authority or under
the Construction Contract by the Construction Contractor.
3.5.4 The Parties agree that during the Step-In Period the Construction Contractor
will accept the instructions of the Lead Authority or its appointee (whose
identity shall have previously been notified to the Construction Contractor in
writing) to the exclusion of the Contractor (or its appointed contract
administrator) for the purposes of the Construction Contract provided that
such instructions:
(A)
could have been issued by the Lead Authority or its appointee if it had
been a party to the Construction Contract in lieu of the Contractor; and
(B)
shall not adversely affect the rights and obligations of the Contractor
and the Construction Contractor in respect of events arising on or
before commencement of the Step-In Period.
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