Consequences of Payment Default Sample Clauses
The "Consequences of Payment Default" clause defines the actions and penalties that will be triggered if a party fails to make payments as required under the agreement. Typically, this clause outlines remedies such as the accrual of interest on overdue amounts, the suspension of services or deliveries, or even the right to terminate the contract if the default continues. By clearly specifying the repercussions of late or missed payments, this clause helps deter non-payment and provides a structured process for addressing payment issues, thereby protecting the financial interests of the non-defaulting party.
Consequences of Payment Default. (a) In the event of a payment default for a duration of three [3] consecutive months by the ULB, the ULB will not be entitled to the services of the Project and the Concessionaire may at its discretion suspend the acceptance of the SW MSW from the defaulting ULB, till such time as the relevant payment default is cured. However, if the default continues for a continuous period of six (6) months, the same shall be treated as ULB Event of Default.
(b) In the event of a payment default for a duration of three [3] consecutive months by the Concessionaire, the ULB may at its discretion discontinue the supply of SW MSW at Waste to Energy Processing Facility, till such time as the relevant payment default is cured. However, if the default continues for a continuous period of six (6) months, the same shall be treated as Concessionaire Event of Default.
Consequences of Payment Default. (a) If ULB fails to pay the Tipping Fee payable in accordance with Article 9.3, in part or full to the Concessionaire, the State Government undertakes to deduct the amount owed to the Concessionaire from the [grant funds/ funds designated for distribution pursuant to octroi compensation/funds designated for distribution pursuant to the state financial commission] earmarked for the ULB and pay such amount directly to the Concessionaire within thirty (30) days of default by the ULB.
(b) Upon occurrence of payment default, the Concessionaire shall establish a special designated account into which State Government shall deposit three months equivalent of Tipping Fee payment of the defaulting ULB. State Government shall have the right to recover the amount from the defaulting ULB by any measure it may deem fit, including but not limited to levy of betterment charges or other levies under relevant law through any agency of State Government to fund the relevant payments.
(c) In the event of a payment default for a duration of three [3] consecutive months by ULB and State Government, the ULB will not be entitled to the services of the Project and the Concessionaire may at its discretion suspend the acceptance of the Incoming Waste from the defaulting ULB, till such time as the relevant payment default is cured. However, if the default continues for a continuous period of six (6) months, the same shall be treated as ULB Event of Default and State Government Event of Default.
Consequences of Payment Default. Failure to pay within the agreed credit terms will automatically create Stop Credit, and will not be re-commenced until payment is received for all amounts outstanding beyond agreed credit terms.