Common use of Authorization for Reductions in Allowed Amount Clause in Contracts

Authorization for Reductions in Allowed Amount. (i) Subject to review and order of the District Court, the Finance Committee, in consideration of the analysis and recommendation of the Independent Assessor, shall determine the need to reduce the amount payable to Claimants or to defer payments based upon the projections described at Section 7.01(d). The Allowed amount of Claims may be reduced only if: (1) the Finance Committee, subject to the approval of the District Court, concludes, based on the projections, that a reduction is necessary to pay in full all First Priority Payments or (2) the Finance Committee, subject to the approval of the District Court, concludes, based on the projections, that a reduction is necessary to assure equitable distributions to Claimants within the aggregate limits of the Settlement Fund, the Litigation Fund or Other Products Fund as applicable. To obtain authorization to reduce amounts payable, the Finance Committee shall submit to the District Court a recommendation including all projections and analyses supporting the Finance Committee’s recommendation. (ii) In the event that a reduction is imposed and subsequent projections demonstrate that all Allowed Claims can be paid in full or can be paid in an amount less than the full Allowed amount but greater than the reduced amount previously Allowed, then the Finance Committee, subject to the approval of the District Court, shall make a further distribution to Claimants to assure payment in full or up to the amounts achievable consistent with the limits on the Settlement Fund or the Litigation Fund as applicable. (iii) In the event the Finance Committee, in consideration of the analysis and recommendation of the Independent Assessor, determines that there is a need for a reduction in payment, the Finance Committee’s recommendation to the District Court shall include a proposed method of reducing Claim payments consistent with the terms of this article regarding the prioritization of Claim payments.

Authorization for Reductions in Allowed Amount. (i) Subject to review and order of the District Court, the Finance Committee, in consideration of the analysis and recommendation of the Independent Assessor, Committee shall determine the need to reduce the amount payable to Claimants or to defer payments based upon the projections described at Section 7.01(d). The Allowed amount of Claims may be reduced only if: (1) the Finance Committee, subject to the approval of the District Court, concludes, based on the projections, that a reduction is necessary to pay in full all First Priority Payments or (2) the Finance Committee, subject to the approval of the District Court, concludes, based on the projections, that a reduction is necessary to assure equitable distributions to Claimants within the aggregate limits of the Settlement Fund, the Litigation Fund or Other Products Fund as applicable. To obtain authorization to reduce amounts payable, the Finance Committee shall submit to the District Court a recommendation including all projections and analyses supporting the Finance Committee’s recommendation. (ii) In the event that a reduction is imposed and subsequent projections demonstrate that all Allowed Claims can be paid in full or can be paid in an amount less than the full Allowed amount but greater than the reduced amount previously Allowed, then the Finance Committee, subject to the approval of the District Court, shall make a further distribution to Claimants to assure payment in full or up to the amounts achievable consistent with the limits on the Settlement Fund or the Litigation Fund as applicable.to (iii) In the event the Finance Committee, in consideration of the analysis and recommendation of the Independent Assessor, Committee determines that there is a need for a reduction in payment, the Finance Committee’s recommendation to the District Court shall include a proposed method of reducing Claim payments consistent with the terms of this article regarding the prioritization of Claim payments.