Common use of Payment and Security Clause in Contracts

Payment and Security. 13.1 Forestry Tasmania will be entitled to demand, by way of invoice, payment for a Billet as soon as the Purchaser or its agent has taken possession of that Billet. Forestry Tasmania will use reasonable endeavours to provide an invoice, supported by the relevant dockets, to the Purchaser within five Business Days of the end of the month in which supply was made. 13.2 The Purchaser must pay any amount due within fifteen days from the end of the month within which the Billets to which the amount due refers were made available to the Purchaser. 13.3 In order to secure the Purchaser’s performance of its obligations under this Contract, the Purchaser must provide security to Forestry Tasmania as follows: (a) the security must be provided by way of a bank guarantee: (i) for an amount equivalent to the amount payable under this Contract for seven weeks’ Nominated Monthly Supply of Billets; and (ii) in a form and from an Australian bank reasonably acceptable to Forestry Tasmania. (b) Forestry Tasmania may draw down on the Performance Guarantee to satisfy any amount overdue according to an invoice issued by Forestry Tasmania for a payment to be made by the Purchaser under this Contract or at law. (c) Drawing on the Performance Guarantee by Forestry Tasmania will not prevent Forestry Tasmania from seeking alternative or additional remedies. (d) If Forestry Tasmania draws down on the Performance Guarantee then, no later than five Business Days after Forestry Tasmania gives the Purchaser a notice asking for it, the Purchaser must deliver to Forestry Tasmania a replacement or additional bank guarantee so that the amount available under the Performance Guarantee is equivalent to the amount referred to in Clause 13.3(a)(i). 13.4 Forestry Tasmania may at any time during this Contract by notice require the Purchaser to implement an arrangement with a bank to provide a direct debit system, approved by Forestry Tasmania and the Purchaser, for the immediate payment of Forestry Tasmania’s accounts upon request by Forestry Tasmania of the bank. At all times the Purchaser must ensure that sufficient money is available in the relevant account to meet its payments to Forestry Tasmania. 13.5 If any amount payable to Forestry Tasmania by the Purchaser is not paid within the time specified for that payment, then: (a) the Purchaser must still pay that amount to Forestry Tasmania; and (b) the Purchaser shall pay Interest at the Default Rate on the unpaid amount in accordance with Clause 19 as required by Forestry Tasmania; and (c) Forestry Tasmania may claim payment against the security provided by or on behalf of the Purchaser in accordance with Clause 13.3. 13.6 If any account is disputed by the Purchaser, then the Purchaser must within fifteen days of receipt of the account give Forestry Tasmania: (a) notice of the dispute; and (b) notice of the proportion of the account which is disputed and the grounds for disputing that proportion. 13.7 Notwithstanding any account being disputed in accordance with Clause 13.6, the Purchaser must make payment of any account tendered by Forestry Tasmania in accordance with Clause 13.2. 13.8 Following resolution of a disputed account, the amount of money paid by the Purchaser to Forestry Tasmania will be adjusted, if required, to reflect that resolution. If such an adjustment by Forestry Tasmania requires either a payment to the Purchaser or a credit to the Purchaser’s account, then Forestry Tasmania will pay Interest at the Default Rate on the amount of that adjustment. 13.9 The fact that notice is given that all or part of an account is disputed shall not prevent Forestry Tasmania from exercising any of its rights under Clauses 17 and 18.