Common use of Unsatisfactory Work Clause in Contracts

Unsatisfactory Work. If the Construction Consultant or the Administrative Agent shall determine that a portion of the Construction Work for which Loans are sought is Unsatisfactory Work, the Administrative Agent shall be entitled to (1) withhold from such Loans amounts sufficient to pay for the Unsatisfactory Work and (2) if such Unsatisfactory Work is significant such that the failure to correct the same will have a Material Adverse Effect, require the Construction Work to be stopped until such time as the Administrative Agent and the Construction Consultant are satisfied that the Unsatisfactory Work is corrected. No such action by the Administrative Agent shall be deemed to affect Borrower’s obligation to complete the Improvements on or before the Completion Date. The Lenders shall, subject to compliance by Borrower with all other applicable requirements of this Agreement, be required to make Loans with respect to such Unsatisfactory Work only after the Construction Consultant and the Administrative Agent shall have determined that the work which had been identified as Unsatisfactory Work has been corrected to the satisfaction of the Construction Consultant and the Administrative Agent.