Common use of Requirements to Pay Clause in Contracts

Requirements to Pay. a) If at any time, payment of any amount guaranteed herein is in default for more than seven (7) days, the Union shall be entitled to deliver to Guarantor a formal demand in writing outlining the specific sum involved and particular of the default. Upon receipt of such demand, Guarantor will forthwith pay to Union the sum set out in such notice. If there is any dispute as to the amount owing by Producer, or whether any amount is owing at all, Guarantor will nevertheless pay the sum set out in such notice to a mutually agreed upon third party escrow agent (the “Escrow Agent”) in trust, and the Escrow Agent will hold such sum in trust in an interest bearing account. Immediately upon such dispute being resolved, the Escrow Agent will pay the applicable amount to Union (if any) and refund to Guarantor any sums determined to be in excess (if any) of what was owing to Producer, along with accrued interest.