Common use of Consequences of a Default Clause in Contracts

Consequences of a Default. (1) If a Default occurs, the Authority may, but is not obligated to, give to the Contractor a notice of Default and, in the Authority’s sole discretion, may provide an opportunity to cure. If a cure is allowed, and if the Contractor has not cured or made reasonable progress to cure the Default within fifteen (15) days from the Contractor’s receipt of the notice, the Authority may immediately terminate the Contract by written notice to the Contractor. The Contractor agrees that the Authority may also cure any Default in the Contractor’s performance and charge the Contractor for the cost of the cure plus a ten percent (10%) administration fee. Upon the Contractor’s receipt of a written notice of termination, the Contractor shall immediately take the following actions: quit the Premises and return them to the Authority’s control; return the Operating Equipment to the Authority; deliver all Operating Receipts to the Authority’s Authorized Banking Account designated at Exhibit K; deliver all accounts, invoices, and other books and records to the Authority; and take all other actions desirable or directed by the Authority to provide for a smooth transition of operations to the Authority directly or to its designee without loss or delay. Upon any termination, every obligation contained in this Contract to be performed by the Authority shall cease; the Supplemental Lease Agreement shall terminate; and the Contractor shall have no further authority to take any action on behalf of the Authority.