Determination of sanction Clause Samples
The 'Determination of sanction' clause sets out the process and criteria for deciding what penalties or corrective actions will be imposed in the event of a breach or violation under the agreement. Typically, this clause outlines who has the authority to determine the appropriate sanction, the factors to be considered (such as the severity of the breach or any mitigating circumstances), and the types of sanctions that may be applied, such as fines, suspension, or termination of rights. Its core practical function is to ensure a clear, fair, and consistent approach to addressing violations, thereby promoting compliance and reducing disputes over enforcement.
Determination of sanction. The sanction under Audit CAP is a negotiated percentage of the Maximum Payment Amount. For 403(b) Plans and SEPs, the sanction is a negotiated percentage of the Total Sanction Amount. Sanctions will not be excessive and will bear a reasonable relationship to the nature, extent, and severity of the failures, based on the factors below.
Determination of sanction. Except as otherwise provided in section 14.04, the sanction under Audit CAP is a negotiated percentage of the Maximum Payment Amount. Sanctions will not be excessive and will bear a reasonable relationship to the nature, extent, and severity of the failures, based on the factors below. In the case of any participant loan that did not comply with the requirements of § 72(p)(2), the Maximum Payment Amount will include the tax the Service could collect as a result of the loan not being excluded from gross income under § 72(p)(2).