Common use of BUILDER'S DEFAULT Clause in Contracts

BUILDER'S DEFAULT. 1. The following shall constitute events of default of the BUILDER under this Contract: a. The BUILDER being dissolved or adjudged a bankrupt or making a general assignment for the benefit of its creditors, or the appointment of a receiver or receivers of any kind whatsoever, whether or not appointed in bankruptcy, common law or equity proceedings, whether temporary or permanent, for the property of the BUILDER, or the filing by the BUILDER of a petition for reorganization or other proceedings with reference to the BUILDER, under any of the provisions of the Bankruptcy Code of the United States or any similar law, state or federal or in any jurisdiction in which the Contractor has assets or is registered to do business, or the filing of such petition by creditors and approval thereof by the Court, whether proposed by a creditor, a stockholder or any other person whatsoever, or the filing of an answer to such petition admitting insolvency or inability to pay its debts. b. If any default by the BUILDER continues for a period of thirty (30) days, the BUYER may, at its option, terminate this Contract by giving notice of such effect to the BUILDER in accordance with ARTICLE X hereof, which termination shall be effective, without further act or deed immediately upon the receipt of such notice provided, such termination shall not prevent either party from initiating proceedings pursuant to the provisions of Article XIV with respect to any claim it may allege concerning rights and obligations under this Contract. The BUYER, if it so elects, may, notwithstanding the pendency of any such proceedings under ARTICLE XIV require a refund of the full amount of all sums paid by the BUYER to the BUILDER on account of the VESSEL and, at the BUYER'S option, the BUILDER shall either purchase for their fair market value or return to the BUYER all of the BUYER'S supplies.