Template:EFET Allowance Annex 8.2: Difference between revisions

:(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.  

:Interest for the two {{efetaprov|Delivery Business Day}} grace period shall accrue at the Interest Rate specified in § {{efetaprov|13.5}} (Default Interest) for the period from (and including) the {{efetaprov|Delivery Date}} to (but excluding) the second {{efetaprov|Delivery Business Day}} following the {{efetaprov|Delivery Date}} on the {{efetaprov|Total Contract Price}} of the {{efetaprov|Allowance}}s not accepted by the {{efetaprov|Buyer}}, such {{efetaprov|Total Contract Price}} calculated as follows: the number of {{efetaprov|Allowance}}s not accepted by the {{efetaprov|Buyer}} multiplied by a fraction determined by dividing the {{efetaprov|Total Contract Price}} by the {{efetaprov|Contract Quantity}}.  

:(b) '''{{efetaprov|Seller’s Cover Costs}}'''. In the event that the {{efetaprov|Buyer}} fails to accept {{efetaprov|Transfer}} of all or any portion of a {{efetaprov|Contract Quantity}} as required by § 8.2(a) ({{efetaprov|Two Business Days Grace Period}}) in accordance with the terms of an {{efetaprov|Allowance Transaction}} and the {{efetaprov|Seller}} has not agreed to a Deferred Acceptance Date as provided for in § 8.2(c) (''{{efetaprov|Seller’s Right to Waive Its Cover Costs}}''), the {{efetaprov|Buyer}} shall incur the obligation to pay the {{efetaprov|Seller}}, as compensation for its failure to accept {{efetaprov|Transfer}} of the {{efetaprov|Allowance}}s, an amount (hereinafter “{{efetaprov|Seller’s Cover Costs}}”) equal to the sum of:  

::(iii) interest accrued during the two {{efetaprov|Delivery Business Day}} grace period as provided in § 8.2(a); plus interest, at the Interest Rate specified in § 13.5 (Default Interest), accrued from (and including) the first Delivery Business Date following the {{efetaprov|Delivery Date}}, to (but excluding) the date of receipt by the {{efetaprov|Seller}} of damages for the {{efetaprov|Buyer}}’s failure to accept, such amount calculated using the following formula:  

::(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).