Rate Arbitrage Clause Samples

A Rate Arbitrage clause is designed to prevent parties from exploiting differences in interest rates or pricing terms within a contract or between related transactions. Typically, this clause restricts a party from engaging in transactions that would allow them to benefit from discrepancies in rates, such as borrowing at a lower rate under one agreement and investing at a higher rate under another. By including this provision, the contract ensures that neither party can take unfair advantage of rate differentials, thereby maintaining fairness and protecting the intended economic balance of the agreement.
Rate Arbitrage. 1.3.1. Each Party agrees that it will not knowingly provision any of its services or the services of a third party in a manner that permits the circumvention of applicable switched access charges by the other Party (“Rate Arbitrage”) and/or the utilization of the physical connecting arrangements described in this Agreement to permit the delivery to the other Party of traffic not covered under this Agreement through the POI on IntraLATA interconnection trunks (as defined below). This Rate Arbitrage includes, but is not limited to, third- party carriers, traffic aggregators, and resellers. 1.3.2. If any Rate Arbitrage and/or delivery of traffic not covered under this Agreement through the IntraLATA interconnection trunks is identified, the Party causing such Rate Arbitrage also agrees to take all reasonable steps to terminate and/or reroute any service that is permitting any of that Party’s End-User Customers or any entity to conduct Rate Arbitrage or that permits the End-User Customer or any entity to utilize the POI for the delivery or receipt of such excluded traffic through the IntraLATA interconnection trunks. Notwithstanding the foregoing, if any Party is found to be in violation of this Section, until such time as the Rate Arbitrage or incorrect routing of traffic is resolved, that Party shall pay applicable charges to the other Party for all such traffic. 1.3.3. If either Party suspects Rate Arbitrage from the other Party, the Party suspecting arbitrage (“Initiating Party”) shall have the right to audit the other Party’s records to ensure that no Rate Arbitrage and/or the delivery of traffic not covered under this Agreement is taking place. Both Parties shall cooperate in providing records required to conduct such audits. Upon request by ILEC, CLEC shall be responsible for its End-User Customer’s. The Initiating Party shall have the right to conduct additional audit(s) if the preceding audit disclosed such Rate Arbitrage provided, however, that neither Party shall request an audit more frequently than is commercially reasonable. Notwithstanding the foregoing, if any Party is found to be in violation of this Section, until such time as the Rate Arbitrage or incorrect routing of traffic is resolved, that Party shall pay all applicable charges to the other Party for all such traffic.
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Rate Arbitrage. 22.6.1 SS7 Out of Band Signaling (CCS/SS7) shall be the signaling used to exchange traffic under this Agreement. Both Parties shall populate the Jurisdictional Identification Parameter (JIP) field with the first six (6) digits (NPA NXX format) of the appropriate local routing number (LRN) of the originating switch for any ported telephone number. In the event that a Party does not provide sufficient information for the other Party to determine if traffic is Local Traffic, the originating Party shall pay the terminating Party the rates set forth in their respective Tariffs for such traffic. 22.6.2 Neither Party will provision any of its services or the services of a third party in a manner that permits End-Users of the other Party to circumvent switched access charges between the Parties (“Rate Arbitrage”). Both Parties agree not to re-originate traffic to the other Party. If any Rate Arbitrage and/or delivery of traffic not covered under this Agreement is identified, the Parties agree to take all reasonable steps to terminate and/or reroute any service that is permitting a Party’s end user customers or any entity to conduct Rate Arbitrage, or that permits end user customers or any entity to utilize a Party’s network for the delivery or receipt of excluded traffic. Notwithstanding the foregoing, if either Party is found to be in violation of this Section, until such time as the Rate Arbitrage or incorrect routing of traffic is resolved, the Party engaging in Rate Arbitrage shall pay applicable Tariff charges to the other Party for traffic subject to Rate Arbitrage or traffic that is incorrectly routed.
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Rate Arbitrage. 1.3.1 Each Party agrees that it will not knowingly provision any of its services or the services of a third party in a manner that permits the circumvention of applicable switched access charges by the other Party ("Rate Arbitrage") and/or the utilization of the physical connecting arrangements described in this Agreement to permit the delivery to the other Party of traffic not covered under this Agreement through the POI on local interconnection trunks. This Rate Arbitrage includes, but is not limited to, third-party carriers, traffic aggregators, and resellers. 1.3.2 If any Rate Arbitrage and/or delivery of traffic not covered under this Agreement through the local interconnection trunks is identified, the Party causing such Rate Arbitrage also agrees to take all reasonable steps to terminate and/or reroute any service that is permitting any of that Party's End User Customers or any entity to conduct Rate Arbitrage or that permits the End User Customer or any entity to utilize the POI for the delivery or receipt of such excluded traffic through the local interconnection trunks. Notwithstanding the foregoing, if any Party is folmd to be in violation of this Section, until such time as the Rate Arbitrage or incorrect muting of traffic is resolved, that Party shall pay applicable access charges to the other Party. 1.3.3 If either Party suspects Rate Arbitrage from the other Party, the Party suspecting arbitrage ("Initiating Party") shall have the right to audit the other Party's records to ensure that no Rate Arbitrage and/or the delivery of traffic not covered under this Agreement is taking place. Both Parties shall cooperate in providing records required to conduct such audits. Upon request by ILEC, CLEC shall be required to obtain any applicable records of any customer or other third party utilizing CLEC's intercounection with t0/27/2006 2 Bluffton -TSLC Interconnection Agreement
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Related to Rate Arbitrage

  • Rate Adjustments 1. Taxes applicable to the gas delivered to Buyer hereunder as are in effect on January 1•1 immediately preceding the effective date of these terms and conditions shall be added to ▇▇▇▇▇'s bill. The term "tax' as used herein shall mean any tax, license fee, or charge applicable to the gas delivered hereunder, imposed on Seller by any governmental authority on such gas. If the existing rate of any such tax in effect on January 1st, immediately preceding the effective date of these terms and conditions, be hereafter increased or decreased, or if any tax heretofore in effect or hereafter be imposed or repealed, the resulting increase or decrease in such taxes, computed on a cents per dekatherm basis, shall be reflected, as the case may be, on Buyer's bill. 2. Any applicable surcharge or special charges ordered by the Commission or any other duly constituted regulatory body shall be included in addition to the price of gas computed in accordance with the terms of the Service Agreement. t

  • Rate of Accrual ‌ Full-time employees who have been in pay status for eighty (80) non-overtime hours in a calendar month will accrue annual leave according to the rate schedule below. Annual leave accrual for part-time employees will be proportionate to the number of hours the part-time employee is in pay status during the month to that required for full-time employment.