Examples of Non-Participating Manufacturer in a sentence
Summary: The formula for early release of escrow funds to a Non-Participating Manufacturer is altered so that the amount remaining in escrow is not less than the amount the manufacturer would have been required to pay if it had signed the Tobacco Master Settlement Agreement.
It is also intended to provide a fund from which a state that successfully sues a Non-Participating Manufacturer in the future can recover any judgment or settlement moneys.
It appears that if a Non-Participating Manufacturer concentrates its sales in a single state or a few states, the early release formula in the Model Statute could result in refunds of the vast majority of the manufacturer's escrow deposits.
Money deposited in an escrow account is released to the Non-Participating Manufacturer after 25 years if not used before then to pay a judgment.
A Non-Participating Manufacturer who is able to obtain these refunds could lower the price of its cigarettes in comparison to manufacturers who are making full payments under the Agreement, thereby obtaining a competitive advantage.