Common use of Failure To Respond to Cash Call Clause in Contracts

Failure To Respond to Cash Call. If any participant shall fail to cause funds indicated in an individual cash call (including any individual cash call issued as a consequence of another Participant's default) to be delivered to IID by the fifteenth (15th) day of the calendar month after the month of issuance thereof (or if such day falls on a Saturday, Sunday or legal holiday, the next succeeding business day), or by such earlier due date as may be indicated on the face of the individual cash call, such Participant shall be deemed to be in default hereunder, and IID shall promptly send a notice of default to such Participant, with a copy to the Manager (or, in the case of such a default by the Manager, to any person which the Participants, by written notice in the form described in Section 5.02, have informed IID is acting as Alternate Manager). The Participant in default shall have fifteen (15) days after IID's transmittal of the notice of default in which to cure the default by causing to be paid the amount in default plus interest for each day after the due date to and including the date payment is received by the District at a rate equal to 125% of the Prime Rate (or the maximum rate allowed by law, whichever is less) in effect on the due date. No Participant shall be entitled to cure a default under this Agreement as of right except as specifically provided in this Section 3.05. After the fifteen (15) day period specified above, a Participant in default shall be permitted to cure its default only with the approval of and on such terms as may be specified by the Management Committee, one of such terms being that the defaulting Participant shall pay or cause to be paid the amount in default plus interest thereon at a rate equal to 125% of the Prime Rate (or the maximum rate allowed by law, whichever is less), determined on the due date and on the first business day of each calendar quarter thereafter, for the period during which the payment was in default. Any payment of a Project Contribution made by or on behalf of a Participant after the due date therefor shall be accompanied by interest calculated as provided in this Section 3.05, and any such payment received by IID after the due date shall, as necessary, be allocated between the Project Contribution and the intereste due thereon calculated as provided herein. Upon the payment of any Project Contribution by or on behalf of a Participant after the fifteen (15) day cure period with respect thereto has expired, IID shall promptly refund to every other Participant an amount equal to the total of any Project Contributions which it made as a result of the failure of such Project Contribution to be made by the end of the fifteen (15) day cure period, plus interest calculated as provided herein.