Common use of Errors in Payment Clause in Contracts

Errors in Payment. 7.1 If the Guarantor makes a payment to the Lender under the EMFS Guarantee, but afterwards the Guarantor determines that the Payment Claim (or the Additional Payment Claim) was made: (A) fraudulently or otherwise than in good faith; or (B) other than in compliance with Clauses 2, 5.2(A) and 5.2(B), then, on the Guarantor’s demand, the Lender will immediately reimburse that payment to the Guarantor. 7.2 If the Guarantor determines that the pricing of the Covered EMFS Financing (including interest and other amounts charged to the Borrower) does not satisfy the requirements of the Agreement Supplement, then the Lender will take such action as may be required by the Guarantor to rectify this, including requiring a payment from the Borrower or paying to the Borrower in respect of the Covered EMFS Financing such amount as would place that Borrower in the position that it would have been in had the provisions relating to pricing in the Agreement Supplement been complied with by the Lender. 7.3 If, in relation to the Covered EMFS Financing or the EMFS Guarantee, a Party (the “Payer”) makes payment to the other Party (the “Payee”) of any amount pursuant to the terms of the EMFS Guarantee and it is subsequently determined that such amount: (A) exceeded the amount that the Payee was entitled to receive under the terms of the EMFS Guarantee, the Payee will as soon as reasonably practicable following a demand by the Payer reimburse to the Payer the difference between the amount which was paid by the Payer in respect of the Covered EMFS Financing or EMFS Guarantee (as applicable) and the amount which should have been paid; or (B) was less than the amount that the Payee was entitled to receive under the terms of the EMFS Guarantee, the Payer will pay to the Payee as soon as reasonably practicable the additional amount owed to the Payee under the Covered EMFS Financing or EMFS Guarantee (as applicable), together with interest on such sum accruing on each day of the over or under payment at the prevailing Bank of England base rate.