Common use of Rebate Payment Clause in Contracts

Rebate Payment. 1. Upon the calculation of the Locality Rebate Requirement and Yield Reduction Payment for each Locality, VPSA shall notify the Investment Manager thereof. The Investment Manager shall promptly charge the Principal Subaccount of a Locality to the extent the amount on deposit to the credit of its Income Subaccount is less than the sum of its Locality Rebate Requirement and Locality Yield Reduction Payment and credit its Income Subaccount with an amount such that the balance to the credit of the Income Subaccount is equal to the sum of its Locality Rebate Requirement and Locality Yield Reduction Payment (taking into account prior amounts credited to the Income Subaccount including investment income thereon). To the extent that the amount on deposit in the Principal Subaccount is insufficient to provide for a deposit to the Income Subaccount such that the balance in the Income Subaccount is equal to the sum of the Locality Rebate Requirement and Locality Yield Reduction Payment for the Locality, the Investment Manager shall advise VPSA and such Locality of the amount of the deficiency so that the Locality may promptly transfer to the Depository the amount required pursuant to Section 12 of the Proceeds Agreement.