Template:EFET Allowance Annex 8.2: Difference between revisions

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Template:EFET Allowance Annex 8.2 (view source)

Revision as of 12:19, 8 September 2023

33 bytes added ,  8 September 2023
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(Created page with "§ {{euaprov|8.2}} '''{{euaprov|Failure to Accept}}''': :(a) '''{{efetaprov|Two Business Days Grace Period}}'''. When the {{efetaprov|Buyer}} fails to accept {{efetaprov|Transfer}} of a {{efetaprov|Contract Quantity}} in whole or in part on a {{efetaprov|Delivery Date}} as required in accordance with the terms of an {{efetaprov|Allowance Transaction}}, and such failure is not excused by an event of Force Majeure, {{efetaprov|Suspension Event}} or the {{efetaprov|Selle...")
 
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§ {{euaprov|8.2}} '''{{euaprov|Failure to Accept}}''':  
§ {{efetaprov|8.2}} '''{{efetaprov|Failure to Accept}}''':  
   
   
:(a) '''{{efetaprov|Two Business Days Grace Period}}'''. When the {{efetaprov|Buyer}} fails to accept {{efetaprov|Transfer}} of a {{efetaprov|Contract Quantity}} in whole or in part on a {{efetaprov|Delivery Date}} as required in accordance with the terms of an {{efetaprov|Allowance Transaction}}, and such failure is not excused by an event of Force Majeure, {{efetaprov|Suspension Event}} or the {{efetaprov|Seller}}’s non-performance, the {{efetaprov|Seller}} shall afford the {{efetaprov|Buyer}} an opportunity to remedy its failure by again attempting to Schedule and {{efetaprov|Transfer}} such {{efetaprov|Contract Quantity}} (or undelivered portion thereof) to the {{efetaprov|Buyer}} on the second {{efetaprov|Delivery Business Day}} following the {{efetaprov|Delivery Date}}, provided that such day is not on or after the {{efetaprov|Reconciliation Deadline}} applicable to the undelivered Allowance(s), and further subject to the additional obligation of the {{efetaprov|Buyer}} to pay the {{efetaprov|Seller}}, as compensation for its failure to accept {{efetaprov|Transfer}} of the {{efetaprov|Allowance}}s, interest calculated: (i) as follows for the two {{efetaprov|Delivery Business Day}} grace period; and (ii) as set forth in the applicable subpart of this § 8.2 for any longer period the {{efetaprov|Buyer}} fails to accept the {{efetaprov|Allowance}}s thereafter.  
:(a) '''{{efetaprov|Two Business Days Grace Period}}'''. When the {{efetaprov|Buyer}} fails to accept {{efetaprov|Transfer}} of a {{efetaprov|Contract Quantity}} in whole or in part on a {{efetaprov|Delivery Date}} as required in accordance with the terms of an {{efetaprov|Allowance Transaction}}, and such failure is not excused by an event of Force Majeure, {{efetaprov|Suspension Event}} or the {{efetaprov|Seller}}’s non-performance, the {{efetaprov|Seller}} shall afford the {{efetaprov|Buyer}} an opportunity to remedy its failure by again attempting to Schedule and {{efetaprov|Transfer}} such {{efetaprov|Contract Quantity}} (or undelivered portion thereof) to the {{efetaprov|Buyer}} on the second {{efetaprov|Delivery Business Day}} following the {{efetaprov|Delivery Date}}, provided that such day is not on or after the {{efetaprov|Reconciliation Deadline}} applicable to the undelivered Allowance(s), and further subject to the additional obligation of the {{efetaprov|Buyer}} to pay the {{efetaprov|Seller}}, as compensation for its failure to accept {{efetaprov|Transfer}} of the {{efetaprov|Allowance}}s, interest calculated: (i) as follows for the two {{efetaprov|Delivery Business Day}} grace period; and (ii) as set forth in the applicable subpart of this § 8.2 for any longer period the {{efetaprov|Buyer}} fails to accept the {{efetaprov|Allowance}}s thereafter.  
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:::'''CP''' means the aggregate {{efetaprov|Contract Price}} that the {{efetaprov|Buyer}} would have been required to pay to the {{efetaprov|Seller}} for all {{efetaprov|Allowance}}s not accepted by it.  
:::'''CP''' means the aggregate {{efetaprov|Contract Price}} that the {{efetaprov|Buyer}} would have been required to pay to the {{efetaprov|Seller}} for all {{efetaprov|Allowance}}s not accepted by it.  


:(c) '''{{efetaprov|Seller’s Right to Waive Its Cover Costs}}'''. The {{efetaprov|Seller}} shall be entitled to invoice the {{efetaprov|Buyer}} for damages payable pursuant to § {{euaprov|8.2}}(b) (''{{efetaprov|Seller’s Cover Costs}}'') in accordance with the requirements of Payment Cycle B as defined in § {{euaprov|13.2}} (''Payment''). However, the {{efetaprov|Seller}} may alternatively, but shall be under no obligation to, defer the due date on the payment of such damages for a reasonable period of time (but in no event beyond the applicable {{efetaprov|Reconciliation Deadline}}) if the {{efetaprov|Buyer}} has indicated to the {{efetaprov|Seller}} its intent to attempt to cure its acceptance default within a period of time acceptable to the {{efetaprov|Seller}}.  
:(c) '''{{efetaprov|Seller’s Right to Waive Its Cover Costs}}'''. The {{efetaprov|Seller}} shall be entitled to invoice the {{efetaprov|Buyer}} for damages payable pursuant to § {{efetaprov|8.2}}(b) (''{{efetaprov|Seller’s Cover Costs}}'') in accordance with the requirements of Payment Cycle B as defined in § {{efetaprov|13.2}} (''Payment''). However, the {{efetaprov|Seller}} may alternatively, but shall be under no obligation to, defer the due date on the payment of such damages for a reasonable period of time (but in no event beyond the applicable {{efetaprov|Reconciliation Deadline}}) if the {{efetaprov|Buyer}} has indicated to the {{efetaprov|Seller}} its intent to attempt to cure its acceptance default within a period of time acceptable to the {{efetaprov|Seller}}.  
   
   
::(i) At any time prior to the due date applicable to the payment of damages due to the {{efetaprov|Seller}} under §8.2(b), the {{efetaprov|Buyer}} may offer to accept {{efetaprov|Transfer}} from the {{efetaprov|Seller}} on a new {{efetaprov|Delivery Date}} (the “'''{{euaprov|Deferred Acceptance Date}}'''”) of the {{efetaprov|Allowance}}s it failed to accept {{efetaprov|Transfer}} of on the original {{efetaprov|Delivery Date}}. The {{efetaprov|Seller}} may, but is not required to, agree to attempt to again {{efetaprov|Transfer}} such replacement {{efetaprov|Allowance}}s to the {{efetaprov|Buyer}} on the Deferred Acceptance Date. If it so agrees, the {{efetaprov|Seller}}, in lieu of the damages it is entitled to recover under § {{euaprov|8.2}}(b), shall be entitled to both {{efetaprov|Transfer}} and receive payment of the {{efetaprov|Contract Price}} for the {{efetaprov|Allowance}}s on the Deferred Acceptance Date and to further invoice the {{efetaprov|Buyer}} for interest for the intervening period calculated as the sum of the interest accrued during the two {{efetaprov|Delivery Business Day}} grace period as provided in § {{euaprov|8.2}}(a) plus interest at the Interest Rate specified in § {{euaprov|13.5}} (Default Interest), from (and including) the second {{efetaprov|Delivery Business Day}} following the {{efetaprov|Delivery Date}} to (but excluding) the date of actual acceptance of {{efetaprov|Transfer}} of the Allowance(s) previously not accepted, accrued on the amount calculated in accordance with the formula set forth in §  
::(i) At any time prior to the due date applicable to the payment of damages due to the {{efetaprov|Seller}} under §8.2(b), the {{efetaprov|Buyer}} may offer to accept {{efetaprov|Transfer}} from the {{efetaprov|Seller}} on a new {{efetaprov|Delivery Date}} (the “'''{{efetaprov|Deferred Acceptance Date}}'''”) of the {{efetaprov|Allowance}}s it failed to accept {{efetaprov|Transfer}} of on the original {{efetaprov|Delivery Date}}. The {{efetaprov|Seller}} may, but is not required to, agree to attempt to again {{efetaprov|Transfer}} such replacement {{efetaprov|Allowance}}s to the {{efetaprov|Buyer}} on the Deferred Acceptance Date. If it so agrees, the {{efetaprov|Seller}}, in lieu of the damages it is entitled to recover under § {{efetaprov|8.2}}(b), shall be entitled to both {{efetaprov|Transfer}} and receive payment of the {{efetaprov|Contract Price}} for the {{efetaprov|Allowance}}s on the Deferred Acceptance Date and to further invoice the {{efetaprov|Buyer}} for interest for the intervening period calculated as the sum of the interest accrued during the two {{efetaprov|Delivery Business Day}} grace period as provided in § {{efetaprov|8.2}}(a) plus interest at the Interest Rate specified in § {{efetaprov|13.5}} (Default Interest), from (and including) the second {{efetaprov|Delivery Business Day}} following the {{efetaprov|Delivery Date}} to (but excluding) the date of actual acceptance of {{efetaprov|Transfer}} of the Allowance(s) previously not accepted, accrued on the amount calculated in accordance with the formula set forth in § {{efetaprov|8.2}}(b)(iii).  
{{euaprov|8.2}}(b)(iii).  


::(ii) If the {{efetaprov|Seller}} agrees to the {{efetaprov|Buyer}}’s offer to accept {{efetaprov|Transfer}} of the {{efetaprov|Allowance}}s on a Deferred Acceptance Date as provided above in subparagraph (i), but the {{efetaprov|Buyer}} again defaults on its acceptance of {{efetaprov|Transfer}} obligation, the {{efetaprov|Seller}} shall be entitled to invoice the {{efetaprov|Buyer}} for an amount calculated in accordance with § {{euaprov|8.2}}(b) (''{{efetaprov|Seller’s Cover Costs}}) save that the amount it may so invoice the {{efetaprov|Buyer}} shall account for both:  
::(ii) If the {{efetaprov|Seller}} agrees to the {{efetaprov|Buyer}}’s offer to accept {{efetaprov|Transfer}} of the {{efetaprov|Allowance}}s on a Deferred Acceptance Date as provided above in subparagraph (i), but the {{efetaprov|Buyer}} again defaults on its acceptance of {{efetaprov|Transfer}} obligation, the {{efetaprov|Seller}} shall be entitled to invoice the {{efetaprov|Buyer}} for an amount calculated in accordance with § {{efetaprov|8.2}}(b) (''{{efetaprov|Seller’s Cover Costs}}) save that the amount it may so invoice the {{efetaprov|Buyer}} shall account for both:  


:::(A) interest, calculated as provided in § 8.2(b)(iii); and  
:::(A) interest, calculated as provided in § {{efetaprov|8.2}}(b)(iii); and  


:::(B) any depreciation in the {{efetaprov|Seller’s Cover Costs}} reflecting lower prevailing market prices available for the resale of {{efetaprov|Allowance}}s on the Deferred Acceptance Date when compared to those available in the market on the original {{efetaprov|Delivery Date}}.
:::(B) any depreciation in the {{efetaprov|Seller’s Cover Costs}} reflecting lower prevailing market prices available for the resale of {{efetaprov|Allowance}}s on the Deferred Acceptance Date when compared to those available in the market on the original {{efetaprov|Delivery Date}}.
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