Common use of Payment Dispute Resolution Clause in Contracts

Payment Dispute Resolution. In the event of payment dispute, the PSINet Authorized Representative and the IXC Authorized Representative (as such capitalized terms are defined in the IRU Agreement) will first attempt in good faith to promptly resolve the dispute. If the dispute has not been resolved by the Authorized Representatives within 14 days after IXC's notice, or if either Party will not agree to meet within such 14-day period, the matter will be referred to the Chief Executive Officer of PSINet and the Chief Executive Officer of IXC who will in good faith attempt to resolve the dispute. If the dispute remains unresolved within an additional 14-day period, the dispute shall be submitted to arbitration as per the IRU Agreement. In the event that any amount remains unpaid after its due date, such amount shall be subject to an interest charge equal to the lesser of one and one-half percent of the unpaid balance per month or the maximum rate allowed under applicable state law and, if such amount shall not have been paid in full within five business days of the applicable due date when no bona fide dispute exists, PSINet may, without any liability to IXC, at its option, suspend the provision of services under this Agreement until such amount is paid in full.