Fallback Mechanism definition
Examples of Fallback Mechanism in a sentence
Each Party shall promptly negotiate in good faith to agree with the other on an Alternative Settlement Price (or a method for determining the Alternative Settlement Price), and, if the Parties have not so agreed on or before the fifth Business Day following the first Calculation Date on which the Market Disruption Event existed, the next applicable Fallback Mechanism shall apply.
The Calculation Agent shall determine the Alternative Settlement Price which shall be the price for that Calculation Date of the first Alternate Commodity Reference Price (if any, specified in the applicable Individual Contract), which is not itself subject to a Market Disruption Event; if an Alternate Commodity Reference Price has not been agreed on in the Individual Contract, the next applicable Fallback Mechanism shall apply for the relevant Individual Contract.
The Calculation Agent can only use the next following Fallback Mechanism provision if the previous Fallback Mechanism provision is not available due to a Market Disruption Event or otherwise as provided in § 15.3 (Fallback Mechanism), as applicable.
In the event of a Market Disruption Event, the order of succession of § 15.3 (Fallback Mechanism) from (a) to (c) shall be binding upon the Calculation Agent.
Upon the occurrence of a Market Disruption Event as specified in § 15.4 (Definition of Market Disruption Event), the Calculation Agent shall determine an alternative price to which the relevant Individual Contract shall be settled (the "Alternative Settlement Price") according to the applicable Fallback Mechanism contained in the provisions of § 15.3 (Fallback Mechanism).
The Calculation Agent can only use the next following Fallback Mechanism provision if the previous Fallback Mechanism provision is not available due to a Market Disruption Event or otherwise as provided in §15.3, as applicable.