DEFICIENCIES AND OVERPAYMENTS Clause Samples

The "Deficiencies and Overpayments" clause establishes procedures for identifying and correcting situations where payments made under a contract are either insufficient or excessive. In practice, this clause outlines how parties should notify each other of any discovered discrepancies, the process for reconciling these amounts, and the timeframe for making necessary adjustments, such as issuing refunds or additional payments. Its core function is to ensure financial accuracy and fairness between the parties by providing a clear mechanism to address and resolve payment errors.
DEFICIENCIES AND OVERPAYMENTS. If any such audit discloses a deficiency in the reporting of Gross Revenues, and either Lessee agrees with the result of such audit or the matter is compromised, Lessee shall forthwith pay to Lessor the amount of the deficiency in Additional Rent which would have been payable by it had such deficiency in reporting Gross Revenues not occurred, as finally agreed or determined, together with interest on the Additional Rent which should have been payable by it, calculated at the Overdue Rate, from the date when said payment should have been made by Lessee to the date that Lessor receives such payment. Notwithstanding anything to the contrary herein, with respect to any audit that is commenced more than two (2) years after the date Gross Revenues for any calendar year are reported by Lessee to Lessor, the deficiency, if any, with respect to Additional Rent shall bear interest as permitted herein only from the date such determination of deficiency is made, unless such deficiency is the result of gross negligence or willful misconduct on the part of Lessee (or any Affiliate thereof). If any audit conducted for Lessor pursuant to the provisions hereof discloses that (a) the Gross Revenues actually received by Lessee for any calendar year exceed those reported by Lessee by more than five percent (5%), Lessee shall pay the reasonable cost of such audit and examination or (b) Lessee has overpaid Additional Rent, Lessor shall so notify Lessee and Lessee shall direct Lessor either (i) to refund the overpayment to Lessee or (ii) grant a credit against Additional Rent next coming due in the amount of such difference.
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DEFICIENCIES AND OVERPAYMENTS. If any audit or financial report discloses a deficiency in the reporting of Total Revenues, or any overpayment in Operating Expenses, Fixed Operating Expenses or Management Fees, Managers shall forthwith recalculate Operating Profit, Operating Deficit or Management Fees and pay to the Owners any overpayment or otherwise, together with interest at Manager's sole expense on the amount of deficiency or overpayment, calculated at the Overdue Rate, from the date when such overpayment was made until the date Owners receive return of such overpayment. If any audit conducted for Owners pursuant to the provisions hereof discloses that the Total Revenues for any Operating Year exceed those reported by Managers by more than five percent (5%) or that the full Management Fee or any Accrued Management Fee was overpaid by more than five percent (5%), the Managers at their sole expense (and not as an Operating Expense) shall pay the reasonable cost of such audit and examination. Otherwise, the cost of audits approved by Owners shall be an Operating Expense.
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DEFICIENCIES AND OVERPAYMENTS. If any such audit discloses a deficiency in the
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DEFICIENCIES AND OVERPAYMENTS. 19 3.3.4 Confidentiality........................................................ 19
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Related to DEFICIENCIES AND OVERPAYMENTS

  • Overpayments Contractor promptly shall refund to Purchaser the full amount of any erroneous payment or overpayment. Such refunds shall occur within thirty (30) calendar days of written notice to Contractor; Provided, however, that Purchaser shall have the right to elect to have either direct payments or written credit memos issued. If Contractor fails to make timely refunds of overpayment(s) (either directly or by credit memo), Contractor shall pay Purchaser interest at the rate of one percent (1%) per month on the amount overdue thirty (30) calendar days after notice to Contractor.

  • Refunds and Overpayments A. At its sole discretion, the System Agency may (i) withhold all or part of any payments to Grantee to offset overpayments, unallowable or ineligible costs made to the Grantee, or if any required financial status report(s) is not submitted by the due date(s); or (ii) require Grantee to promptly refund or credit - within thirty (30) calendar days of written notice – to System Agency any funds erroneously paid by System Agency which are not expressly authorized under the Grant Agreement.

  • Overpayments and Underpayments As a result of uncertainty in the application of Section 280G of the Code at the time of an initial determination by the Accounting Firm hereunder, it is possible that Payments will have been made by the Company that should not have been made (an “Overpayment”) or that additional Payments that will not have been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation of the Reduced Amount hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against the Company or the Employee that the Accounting Firm believes has a high probability of success, determines that an Overpayment has been made, such Overpayment shall be treated for all purposes as a loan to the Employee that the Employee shall repay to the Company, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code; provided, however, that no amount shall be payable by the Employee to the Company if and to the extent that such payment would not reduce the amount that is subject to taxation under Section 4999 of the Code. In the event that the Accounting Firm determines that an Underpayment has occurred, such Underpayment shall promptly be paid or transferred by the Company to or for the benefit of the Employee, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code.

  • Recovery of Overpayments On occasion a payment will be made to You when You are not covered, for a service that is not Covered, or which is more than is proper. When this happens We will explain the problem to You and You must return the amount of the overpayment to Us within 60 days after receiving notification from Us. However, We shall not initiate overpayment recovery efforts more than 24 months after the original payment was made unless We have a reasonable belief of fraud or other intentional misconduct.

  • Deficiencies a. The Contractor agrees to cure transactions errors or deficiencies identified by DHCS, and transactions errors or deficiencies identified by an enrolled provider if the Contractor is acting as a clearinghouse for that provider. If the Contractor is a clearinghouse, the Contractor agrees to properly communicate deficiencies and other pertinent information regarding electronic transactions to enrolled providers for which they provide clearinghouse services.