Common use of Basis of Charges Clause in Contracts

Basis of Charges. Services shall be provided on terms and under circumstances, including credit standards, that are substantially the same, or at least as favorable to Cal Fed as those prevailing at the time for comparable transactions with or involving other nonaffiliated companies. In the absence of comparable transactions, services shall be provided on terms and under circumstances, including credit standards, that in good faith would be offered to, or would apply to, nonaffiliated companies. The parties expect that, in the absence of comparable transactions with other nonaffiliated companies, compensation terms will cover Cal Fed's costs and include a reasonable profit for Cal Fed. In all circumstances, GSM agrees to pay Cal Fed compensation sufficient to satisfy all applicable regulatory requirements, including, but not limited to, Section 11 of the Home Owners' Loan Act, Section 23A and 23B of the Federal Reserve Act, and Section 30 of the Federal Deposit Insurance Act.