Common use of Payments and Obligations Clause in Contracts

Payments and Obligations. Each Party commits to remit payment resulting from obligations to members or providers within the payment terms and conditions agreed to in the relevant written agreement or contract. Where such an agreement or contract does not specify payment terms and conditions, Parties agree to remit payment based on the lesser of the payment term included on the payment request or their state’s standard business processes. Parties agree to submit fair, equitable and substantiated reimbursement and payment requests to other members for costs related to products, services, or other resources incurred or provided by themselves for the benefit of other members. Parties accept that a written agreement must exist between members before any request for reimbursement or payment can be requested or occur. Each Party agrees to maintain a ledger with an accompanying aging maintained at the transaction level which tracks the payment and remittance performance of all transactions between the Party and each member and provider and further agrees to provide a copy to the FEB and PMO at least monthly. As a result, each Party recognizes that delays in payments or non-payment on the part of the member will have an adverse impact on other members and providers and their ability to continue providing the products, services, or resources they provide to the Consortium and, therefore, agrees that as a consequence, they may be considered in breach and subject to Withdrawal or Removal per Section 7.4, or may have services withheld by providers and may be responsible to both the providers and other members for any associated costs related to services rendered as outlined in the project contract/agreement terms or invoice. Parties agree that all outstanding liabilities attributable to their participation in the Consortium at the time of their withdrawal or removal from the Consortium will be their responsibility and not that of other Consortium members. Such outstanding liabilities would be determined as a result of a financial reconciliation prepared jointly by the PMO and FEB and provided to the CEC for their review and approval.