Diversion Fee Sample Clauses
A Diversion Fee clause establishes a financial penalty or charge that must be paid if a party diverts from an agreed-upon route, plan, or use, typically in transportation or logistics contracts. For example, if a carrier changes the delivery route or destination without prior approval, the Diversion Fee compensates the other party for any additional costs or disruptions caused by the change. This clause serves to discourage unauthorized deviations and ensures that any necessary changes are properly managed and compensated, thereby maintaining operational predictability and fairness.
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Diversion Fee. A fee in an amount equal to ten percent (10%) times the total sum of payments on Accounts and all other proceeds of Collateral that are not deposited into the Collection Account when received by Borrower, as applicable, in accordance with and as required under Section 2.8 of this Agreement for any reason other than excusable inadvertence on one occasion. Such fee is immediately due and payable on the date that such payments on Accounts and all other proceeds of Collateral are not deposited into the Collection Account, and is in addition to, and does not limit, all other fees and interest, including without limitation interest at the default rate. The payment by Borrower and acceptance and receipt by Lender is not a waiver, forbearance, or acquiescence to any default or Event of Default to which such fee may relate.
Diversion Fee. Commencing 30 days after the Closing Date and thereafter, a fee in an amount equal to ten percent (10%) times the total sum of payments on Accounts and all other proceeds of Collateral that are not deposited into the Collection Account when received by Borrower in accordance with and as required under Section 2.8 of this Agreement for any reason other than excusable inadvertence on one occasion. Such fee is immediately due and payable on the date that such payments on Accounts and all other proceeds of Collateral are not deposited into the Collection Account, and is in addition to, and does not limit, all other fees and interest, including without limitation interest at the default rate. The payment by Borrower and acceptance and receipt by Lender is not a waiver, forbearance, or acquiescence to any default or Event of Default to which such fee may relate.
Diversion Fee. A fee (“Diversion Fee”) in an amount equal to ten percent (10%) times the total sum of payments on Accounts and all other proceeds of Collateral (“Diverted Proceeds”) that are not deposited into the Collection Account when received by Borrower, as applicable, in accordance with and as required under Section 2.8 of this Agreement for any reason other than excusable inadvertence on one occasion (a “Diversion”), which Diversion Fee shall be due and payable pursuant to the following schedule: DIVERTED PROCEEDS PAYMENT OF DIVERTED PROCEEDS DIVERSION FEE APPLICATION EVENT OF DEFAULT APPLICATION Diverted Proceeds are less than $50,000 Diverted Proceeds are paid to Lender in full within 30 days after the Diversion Date No Diversion Fee No Event of Default Diverted Proceeds are not paid to Lender in full within 30 days after the Diversion Date but is paid within 60 days after the Diversion Date Diversion Fee is due on the Diversion Date and payable on the date an amount equal to the Diverted Proceeds are paid to Lender No Event of Default Diverted Proceeds are not paid to Lender in full within 60 days after the Diversion Date Diversion Fee is due on the Diversion Date and payable on 61st day after the Diversion Date Event of Default Diverted Proceeds are greater than $50,000 Diverted Proceeds are paid within 5 days after the Diversion Date No Diversion Fee No Event of Default Diverted Proceeds are not paid within 5 days after the Diversion Date but is paid within 10 days after the Diversion Date Diversion Fee is due on the Diversion Date and payable on the date an amount equal to the Diverted Proceeds are paid to Lender No Event of Default Diverted Proceeds are not paid within 10 days after the Diversion Date Diversion Fee is due on the Diversion Date and payable on 11th day after the Diversion Date Event of Default In the event the a Diversion Fee is due and payable pursuant to this section, such Diversion Fee is immediately due and payable on the applicable date set forth in the schedule in this section, and is in addition to, and does not limit, all other fees and interest, including without limitation interest at the default rate. With respect to a payment to Lender of a Diverted Proceeds that is (a) greater than $50,000 and paid on or after 11 days after the Diversion Date or (b) less than $50,000 and paid on or after 61 days after the Diversion Date, such payment by Borrower and acceptance and receipt by Lender is not a waiver, forbearance, or acquiescence to...