Common use of Default on Payment Clause in Contracts

Default on Payment. 3.1 The Strategic Partner and the Federal Government agree that if the unpaid balance of the price of the Shares of the Holding Company being transferred by virtue of this Agreement is not fully paid, or is not paid on the date set forth in Section 2.5 above, such fact shall be considered as a cause of rescission of this Agreement and of all of the Transaction Documents, with liability for the Strategic Partner, pursuant to the provisions of paragraph 9.3 of the Public Call, applying in such case the contractual penalty set forth in such therein, subject to the provisions of Section 9.3 of this Agreement. 3.2 In the event that the Strategic Partner incurs in the event of default provided for in this Section, the Federal Government may demand from the Strategic Partner the specific performance of this Agreement, as well as the payment of default interest, as from the date of payment and until the effective date of payment, at a rate equal to 2 (two) times the interest rate equivalent to the daily arithmetic average of the 28 day interbank equilibrium interest rate (TIIE) published by Banco de México in the Official Gazette of the Federation or, in the absence thereof, of the interest rate that replaces it. For purposes of calculation of such default interest, the year shall be deemed to be made up of 360 (three hundred and sixty) days.

Default on Payment. 3.1 The Strategic Partner and the Federal Government agree that if the unpaid balance of the price of the Shares of the Holding Company being transferred by virtue of this Agreement is not fully paid, or is not paid on the date set forth in Section 2.5 above, such fact shall be considered as a cause of rescission of this Agreement and of all of the Transaction Documents, with liability for the Strategic Partner, pursuant to the provisions of paragraph 9.3 of the Public Call, applying in such case the contractual penalty set forth in such therein, subject to the provisions of Section 9.3 of this Agreement. 3.2 In the event that the Strategic Partner incurs in the event of default provided for in this Section, the Federal Government may demand from the Strategic Partner the specific performance Specific Performance of this Agreement, as well as the payment of default interest, as from the date of payment December 1st, 1999 and until the effective date of payment, at a rate equal to 2 (two) times the interest rate equivalent to the daily arithmetic average of the 28 day interbank equilibrium interest rate (TIIE) published by Banco de México in the Official Gazette of the Federation or, in the absence thereof, of the interest rate that replaces it. For purposes of calculation of such default interest, the year shall be deemed to be made up of 360 (three hundred and sixty) days.