Transfers to Avoid Spill Clause Samples
The "Transfers to Avoid Spill" clause allows for the transfer of certain rights, obligations, or assets to prevent a situation where a limit or threshold is exceeded, commonly referred to as a "spill." In practice, this might involve moving funds, shares, or responsibilities from one party or account to another before a regulatory, contractual, or operational cap is breached. The core function of this clause is to proactively manage and mitigate the risk of non-compliance or penalties by ensuring that limits are not inadvertently surpassed.
Transfers to Avoid Spill. There is no transfer charge when a Receiving Party, on its own initiative or as arranged by the Supplying Party, transfers stored energy from its reservoir to the reservoir of another Party to avoid probable spill. In such instances, the original Receiving Party shall keep the initial charge (i) received on delivery pursuant to paragraph 14(f)(1) above, or (ii) retained by the Receiving Party under paragraph 14(e)(3) above. The Receiving Party that returns the energy to the Supplying Party shall be paid the additional charges on return required under paragraph 14(f)(2) above. If stored energy is spilled after it is transferred, the initial charge (i) received on delivery pursuant to paragraph 14(f)(1) above, or
Transfers to Avoid Spill. Upon the request of a Supplying Party, a Reservoir Party shall make reasonable efforts to transfer stored energy to avoid spill. If stored energy is so transferred to avoid spill, no Receiving Party shall impose a charge for transferring stored energy from its reservoir to another Party’s reservoir. In such instances, the original Receiving Party shall retain the delivery charge received pursuant to paragraph 14(f)(1)