Guarantee Fund Clause Samples
A Guarantee Fund clause establishes a dedicated pool of funds set aside to cover specific obligations or liabilities that may arise under an agreement. Typically, this fund is contributed to by one or more parties and is used to ensure payment of claims, settlement of debts, or fulfillment of contractual duties if a party defaults. By providing a financial safety net, the Guarantee Fund clause protects parties from losses due to non-performance and enhances trust in the contractual relationship.
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Guarantee Fund. 1. The financial responsibility of each beneficiary shall be limited to its own debt, subject to the following paragraphs.
2. In accordance with Article 6, beneficiaries shall contribute, to the Guarantee Fund (hereinafter the Fund) established in order to manage the risk associated with non- recovery of sums due to the Union by beneficiaries of grant agreements under FP7. That contribution to be transferred by the REA on their behalf may not be offset against any pending debt they may have towards the Union.
3. The Fund is the property of the beneficiaries of on-going grant agreements under FP7. The Union represented by the Commission shall manage it, as executive agent, on their behalf. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Union represented by the Commission, in its quality of executive agent.
4. Interest generated by the Fund shall be added to it and shall be used by the Commission for transfers from or recoveries from the Fund referred to in paragraph 1 and 2 of Article II.20 (hereinafter the Operations). Operations may be undertaken from the day of entry into force of the first grant agreement under FP7 until the day of the final payment of the last one. At the end of that period, any remaining interests shall become the property of the Union. Where interest is insufficient to cover Operations, contributions to the Fund may be used within a limit not exceeding 1% of the financial contribution of the Union due to beneficiaries other than those referred to in paragraph 5, at the end of the period referred to in the above paragraph. Beyond these limits or after that period, the REA or the Commission shall recover directly from beneficiaries any amount owed.
5. At the final payment made after the end of the project, the amount contributed to the Fund under this grant agreement shall be returned to the beneficiaries via the coordinator. The amount to be returned shall be equal to: “contribution to the Fund under this grant agreement” x “Fund index” The “Fund index” is established at the end of each month by the Bank to be applied during the following month, and shall equal the following ratio reduced to 1 when superior: Fund index = (C + I + B)/C where: C= contributions to the Fund of all on-going projects when establishing the index I = cumulated interests generated by the Fund since the start of the period B= (recoveries to the profit of the Fund) - (transfers from & recoveries on the Fund) Where following this calcu...
Guarantee Fund. 1. Beneficiaries shall contribute to the Guarantee Fund (hereinafter the Fund) established in order to manage the risk associated with non-recovery of sums due to the Community by beneficiaries of grant agreements under the 7th Framework Programme. The contribution of beneficiaries of this grant agreement shall be offset from the initial pre-financing, under the terms and conditions established in Article 6.
2. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Community represented by the Commission, acting as executive agent on behalf of the beneficiaries of grant agreements under the 7th Framework Programme.
3. Interest generated by the Fund shall be added to it and shall be used in priority by the Commission for transfer from or recovery from the Fund referred to in paragraph 4 (hereinafter the Operations). 5 This amount shall be the one established in the final version of the Implementing Rules of the Financial Regulation which is currently under revision. Operations may be undertaken from 1st January 2007 until the day of the final payment of the last grant agreement under the 7th Framework Programme (hereinafter the Period). At the end of the Period, any remaining interests shall become the property of the Community. Where interest is insufficient to cover Operations, contributions to the Fund may be used within a limit never exceeding 20% of their value, and within a limit not exceeding 1% of the Community financial contributions due to beneficiaries other than those referred to in paragraph 6, last indent at the end of the Period. Beyond these limits or after the Period, the Commission shall directly recover from beneficiaries any amount owed to the Community..
4. Subject to paragraph 3, the Commission shall implement the following Operations on the Fund:
a. where a beneficiary in an on-going grant agreement under the 7th Framework Programme owes money to the Community and does not transfer it to the coordinator at the latest 45 days after receipt of a written request from the Commission, and where the remaining beneficiaries agree to implement the said grant agreement identically regarding its objectives, the Commission shall order the Bank to directly transfer an equivalent amount to the coordinator. Amounts transferred from the Fund shall be regarded as Community financial contribution.
b. where a beneficiary in any terminated or completed grant agreement under the 7th Framework Programme owes money to the Community, the...
Guarantee Fund. 3.6.1 A fund of INR 100,00,00,000 (Indian Rupees One Hundred Crores only) for every 1 (one) Giga Watt or part thereof of commissioned projects under the MSKVY 2.0 shall be earmarked and a revolving credit guarantee for enhancing payment security for the solar power developers under MSKVY 2.0 has been established (“Guarantee Fund”).
3.6.2 In the event of any default by MSEDCL to make any payment to the Project SPV for a period extending beyond 3 (three) months from the due date (as per the terms of the Power Purchase Agreement), MSAPL shall have the right, at its sole discretion, to pay such defaulted amounts to the Project by debiting amounts from the Guarantee Fund.
Guarantee Fund. 3.1 Fund deposits with the Company are available in different payment methods and in different currencies agreed by the Company. from time to time, and the Trading Account will be converted and managed on the applicable US Dollar, Great British Pound or Euro Trading Platform, based on the exchange rate determined by the Company based on rates as published on the same day. The Company uses clearing and money transfer solutions from different vendors and may receive or transfer funds through a third party, subject to applicable law.
3.2 In accordance with applicable laws and regulations of Money laundering, when depositing by bank transfer or credit card, the customer is required to use his own bank account only. The Customer must send the Company a valid SWIFT confirmation, showing all details of the transmission bank account. Non-delivery of the SWIFT confirmation or, in case the details do not correspond to those of the trading account, may prevent the deposit of funds on the trading account.
3.3 The Company will maintain and act with care in the client's funds. The Company shall have the right to use the Client's funds to cover the Customer's transactions, to cover the Customer's obligations resulting from the Customer's business activity and / or at the sole discretion of the Company, subject to the contractual obligation to pay or refund the money to the client according to the terms of this agreement. Determination of the amount of the Required Margin and the Client's obligations to the Company will be at the sole discretion of the Company.
3.4 When withdrawing funds from the Trading Account by the Client, the withdrawal will be made in the same currency and on the same account and/or credit card as the original ones, unless the company decides, in its sole discretion, to transfer the funds to another account.
3.5 Customer warrants and warrants that margin funds are not derived from criminal or unlawful activity and are without violation of anti-money laundering laws and regulations in the world.
3.6 The Company may at any time and at its sole discretion, block the activity in the Trading Account of the Client if it suspects an act of fraud, cheating, falsification and / or any violation of the law or this Contract by the Customer.
3.7 The Customer will have no claim against the Company and will not hold the Company accountable for any delay and/or any difference in the custom rates of financial institutions such as credit card banks.
3.8 Withdrawal reque...
Guarantee Fund. The [Commission][Agency] or the Commission will formally notify the beneficiary concernedcoordinator the debit note on behalf of the Guarantee Fund and recover the amount: [OPTION if Article 14 applies and joint and several liability has been requested by the [Commission][Agency]: if a linked third party has accepted joint and several liability (see Article 14), by holding the third party liable up to the maximum EU contribution indicated, for the linked third party, in the estimated budget (see Annex 2) and/or] [OPTION: not applicable;] by taking legal action (see Article 57) or by adopting an enforceable decision under Article 299 of the Treaty on the Functioning of the EU (TFEU) [, Article 106a of the Euratom Treaty] and Article 79(2) of the Financial Regulation No 966/2012(see Article 57). If payment is not made by the date in the debit note, the amount to be recovered (see above) will be increased by late-payment interest at the rate set out in Article 21.11, from the day following the date for payment in the debit note, up to and including the date the Agency or the Commission receives full payment of the amount. Partial payments will be first credited against expenses, charges and late-payment interest and then against the principal. Bank charges incurred in the recovery process will be borne by the beneficiarycoordinator, unless Directive 2007/64/EC applies.
Guarantee Fund. 1) The Member must participate in the guarantee fund being represented and managed by Takasbank, which has been established to cover any loss exceeding the collateral due to the default of the Member or other institutions trading in Borsa Istanbul Money Market.
2) The Member is obliged to deliver the assets at the amount and type required by Takasbank as guarantee fund contribution in accordance with the principles and procedures stipulated in the legislation.
3) A guarantee fund contribution call shall be issued to the Member by Takasbank when the guarantee fund falls below the level set forth by the relevant legislation in the event the guarantee fund established for Borsa Istanbul Money Market losses value as a result of the price changes in the market, use of the guarantee fund contributions, increase in the Member’s guarantee fund contribution obligations and for other reasons.
4) A guarantee fund contribution call shall be issued by sending an electronic mail or delivering a message to the Member’s screens provided by Takasbank and/or by way of reporting. The Member accepts the delivery and its receipt of the call at the creation moment of the call in the system without the need for any further warning and notice.
5) The responsibility of the Member starts at the moment the guarantee fund contribution call issued by Takasbank is received by the Member. The time period for fulfilling the call shall be stipulated by Takasbank in the Procedure. Should the obligation be failed to be fulfilled, a default interest shall be charged at a rate set forth in the relevant legislation.
6) The Member accepts that it shall have no right to object to the use of its deposited guarantee fund contributions and additional guarantee fund contributions by Takasbank due to the debts of other clearing and settlement members in accordance with the relevant legislation. If the guarantee fund contributions of the Member have been resorted due to the debts of another clearing and settlement member, the funds generated from the proceeding of the obligor clearing and settlement member shall be used in accordance with the order and principles stipulated in the relevant legislation to return the contributions deposited by the Member and used due to the debts of other member. The return shall be made on a pro-rata basis.
7) The Member accepts, declares and undertakes that it shall not raise any claim against Takasbank should the guarantee fund contributions of the Member be used by ...
Guarantee Fund. 1. The financial responsibility of each beneficiary shall be limited to its own debt, subject to the following paragraphs.
2. In accordance with Article 6, beneficiaries shall contribute to the Guarantee Fund (hereinafter the Fund) established in order to manage the risk associated with non- recovery of sums due to the Union by beneficiaries of grant agreements under FP7. That contribution to be transferred by the REA on their behalf may not be offset against any pending debt they may have towards the Union.
3. The Fund is the property of the beneficiaries of on-going grant agreements under FP7. The Union represented by the Commission shall manage it, as executive agent, on their behalf. The Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Union represented by the Commission, in its quality of executive agent.
4. Interest generated by the Fund shall be added to it and shall be used by the Commission for transfers from or recoveries from the Fund referred to in paragraphs 1 and 2 of Article
Guarantee Fund. (1) The Member, is obliged to participate in the guarantee fund, which is managed and represented by Takasbank, and established to meet the Member’s and other settlement members’ losses over the collateral in the event of default, in accordance with the sequence in 2nd paragraph of the 4th Article.
(2) The Member is obliged to entrust assets in quantity and type as demanded by Takasbank, as guarantee fund contribution, to Takasbank in accordance with the procedure and principles in the relevant legislation.
(3) Whenever the guarantee fund falls below the level laid down in the relevant legislation due to losses caused by market price changes, use of the fund, increase in the Member’s guarantee fund contribution liabilities and other reasons, margin call is made by Takasbank to the Member to top up the guarantee fund. The margin call is made via Member screen- provided by Takasbank- messages and reports. The Member accepts that the call reaches it, the instant it was generated on the system, without the need for further warning or notification. The Member’s obligation starts the instant the call reaches it. The Member is obliged to meet the margin call, in the period defined in the Procedure.
(4) The Member warranties to deposit the additional guarantee fund contribution, which may be demanded in accordance with the relevant legislative provisions, within the period, set by Takasbank. The Member accepts that it has no right of appeal, in the event that the deposited guarantee fund contributions and the additional fund contributions are used for other settlement members’ debt, in accordance with the relevant legislation. In case that the Member’s guarantee fund contribution is resorted to for another settlement member’s debt, any resource obtained from legal pursuit of the settlement member, is used to return to the Member his deposited share of expended contribution, in accordance with the sequence and principles defined in the legislation. The return is made equally. The Member, accepts, declares and warrants that, in the event of the use of guarantee fund contribution to pay off other clearing members’ debt by Takasbank and the legal enforcement on such debtor bears no or partial result resulting in the failure to meet the loss partially or fully, it shall not make any claims against Takasbank.
(5) The remainder of cash TRY guarantee fund contributions -established by the Member-, after deducting the obligatory requirements, are remunerated considering th...
Guarantee Fund. Contributions to a mutual insurance mechanism may cover the risk associated with the recovery of funds due by recipients and shall be considered a sufficient guarantee under the Financial Regulation. The provisions laid down in [Article X of Regulation XXX (successor of the Regulation on the Guarantee Fund)] shall apply.
Guarantee Fund. The Board of Directors shall establish or operate a guarantee fund to satisfy a loss sustained by CDS caused by Participant’s failure to satisfy its obligations. The Board of Directors determines the calculation formula for and the acceptable forms of contributions to the fund, the circumstances under which contributions made in the form of Eligible Securities are devalued, their refund, their custody and their utilization by CDS as set forth in the Procedures.