Common use of Payment on Account Clause in Contracts

Payment on Account. (a) Unless the Designated Authority has made an election under paragraph 7.2(b), the Contractor shall pay to the Designated Authority an amount equal to the Designated Authority's share of all amounts received by the Contractor for the Petroleum within thirty six (36) hours of receipt. (b) In the event that the Contractor has not received payment for Petroleum within sixty

Payment on Account. (a) Unless the Designated Authority has made an election under paragraph 7.2(b), the Contractor shall pay to the Designated Authority an amount equal to the Designated Authority's share of all amounts received by the Contractor for the Petroleum within thirty six (36) hours of receipt. (b) In the event that the Contractor has not received payment for Petroleum within sixtysixty (60) days of production, it nonetheless will make a provisional payment to the Designated Authority of the estimated value of the Designated Authority’s share of such Petroleum.