Rights of Owner if Agency defaults under Agreement or Contract Sample Clauses
This clause defines the actions and remedies available to the owner if the agency fails to fulfill its obligations under the agreement or contract. Typically, it outlines the steps the owner can take, such as issuing a notice of default, suspending payments, or even terminating the contract if the agency does not correct the default within a specified period. The core function of this clause is to protect the owner's interests by providing clear procedures and consequences in the event of the agency's non-performance, thereby ensuring accountability and minimizing potential losses.
Rights of Owner if Agency defaults under Agreement or Contract. The ACC, the Agreement and the Contract will provide that, in the event of failure of the Agency to comply with the Agree- ment or Contract with the owner, the owner will have the right, if he/she is not in default, to demand that HUD in- vestigate. HUD will first give the Agen- cy a reasonable opportunity to take corrective action. If HUD determines that a substantial default exists, HUD will assume the Agency’s rights and obligations under the Agreement or Contract and meet the obligations of the Agency under the Agreement or Contract including the obligation to enter into the Contract.