NETTING OF PAYMENT OBLIGATIONS Clause Samples

The Netting of Payment Obligations clause establishes that, when two parties owe each other amounts under a contract, their respective payment obligations can be offset against each other so that only the net balance is paid by the party who owes more. In practice, this means that instead of each party making separate payments for amounts due, the amounts are calculated and only the difference is settled, reducing the number of transactions and simplifying accounting. This clause primarily serves to streamline payment processes, minimize administrative burden, and reduce credit risk by ensuring that only the net amount is exposed to potential default.
NETTING OF PAYMENT OBLIGATIONS. The Company is making payments to Parent pursuant to Sections 1 and 2(c) hereof in an aggregate amount equal to $16,212,000 ($8,262,000 PLUS $7,950,000), and Parent is making payments to the Company pursuant to Sections 4(a) and 4(b) hereof in an aggregate amount equal to $337,500 ($250,000, PLUS $87,500). For the convenience of the parties and in full satisfaction of all of the payment obligations of the parties under such Sections, simultaneously with the execution and delivery of this letter the Company is paying Parent $15,874,500 ($16,212,000 LESS $337,500) by wire transfer of immediately available funds.
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NETTING OF PAYMENT OBLIGATIONS. If on any date, amounts would otherwise be payable in the same currency by the Client to the Bank, and by the Bank to the Client in respect of two or more FX Transactions, then, on such date, the Client’s obligation and the Bank’s obligation to make payments of any such amount will be automatically satisfied and discharged and, if applicable, replaced by an obligation upon the Party by which the larger amount would have been payable to pay to the other Party the excess of the larger amount over the smaller amount.
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NETTING OF PAYMENT OBLIGATIONS. Notwithstanding the foregoing, if amounts are due on the same day with respect to the amounts described in Section 5.3, the Parties shall satisfy their respective financial obligations to each other by netting the amounts due to OPC from MS against amounts due to MS from OPC hereunder, subject to the provisions of Section 8.2.
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NETTING OF PAYMENT OBLIGATIONS. The Parties shall satisfy their respective financial obligations to each other by netting the amounts due to OPC from Power Marketer against amounts due to Power Marketer from OPC hereunder, subject to the provisions of Section 7.2, and such netting shall be a condition to each Party's duty of payment hereunder.
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Related to NETTING OF PAYMENT OBLIGATIONS

  • Depositor Payment Obligation The Depositor shall be responsible for payment of the Administrator’s compensation under the Administration Agreement and shall reimburse the Administrator for all expenses and liabilities of the Administrator incurred under the Administration Agreement.

  • Payment Obligations Absolute The Company’s obligation during and after the Employment Period to pay the Executive the amounts and to make the benefit and other arrangements provided herein shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any setoff, counterclaim, recoupment, defense or other right which the Company may have against him or her or anyone else. Except as provided in Section 15, all amounts payable by the Company hereunder shall be paid without notice or demand. Each and every payment made hereunder by the Company shall be final, and the Company will not seek to recover all or any part of such payment from the Executive, or from whomsoever may be entitled thereto, for any reason whatsoever.

  • Netting of Payments Subparagraph (ii) of Section 2(c) of this Agreement will apply to all Transactions (in each case starting from the date of this Agreement).

  • Repayment Obligation In the event that any State and/or federal funds are deferred and/or disallowed as a result of any audits or expended in violation of the laws applicable to the expenditure of such funds, the Contractor shall be liable to the Agency for the full amount of any claim disallowed and for all related penalties incurred. The requirements of this paragraph shall apply to the Contractor as well as any subcontractors.

  • Sharing of Reimbursement Obligation Payments Whenever the Agent receives a payment from the Borrower on account of reimbursement obligations in respect of a Letter of Credit or Credit Support as to which the Agent has previously received for the account of the Letter of Credit Issuer thereof payment from a Lender, the Agent shall promptly pay to such Lender such Lender’s Pro Rata Share of such payment from the Borrower. Each such payment shall be made by the Agent on the next Settlement Date.