Common use of Show cause process Clause in Contracts

Show cause process. If We suspect on reasonable grounds that You are not complying with or have not complied with a term of the Service Agreement or the relevant provisions of any relevant legislation, including the Governing Act, or if any of the grounds in 13.1(a) apply, We may, in Our absolute discretion and in addition to any other remedy which may be available to Us, send to You a show cause notice. (a) Under the show cause process, We must give You a notice (a “Show Cause Notice”) stating the following: (i) the action (the “Proposed Action”) We propose taking under clauses 13.1 or 15.1; (ii) the grounds for the Proposed Action; (iii) an outline of the facts and circumstances forming the basis for the grounds; and (iv) an invitation to You to show within a stated period (the “Show Cause Period”) why the Proposed Action should not be taken. (b) The Show Cause Period must be a period ending at least 7 days, or the period stated in the Governing Act, after the Show Cause Notice is given to You. (c) During the show cause period You may make written representations to Us, stating why the Proposed Action should not be taken. (d) We must consider all written representations (the “Accepted Representations”) made under this clause 14. (e) If, after considering the Accepted Representations for the Show Cause Notice, We no longer believe the grounds exist to take the Proposed Action, We: (i) will not take further action about the Show Cause Notice; and (ii) will, as soon as practicable, give notice to You that no further action is to be taken about the Show Cause Notice. (f) We may suspend payment of Funding under clause 13.1 or terminate the Service Agreement under clause 15.1 and notify You in writing of Our decision if: (i) after considering the Accepted Representation for the Show Cause Notice, We still believe the grounds exist to take action to suspend or stop assistance, and We believe the action is warranted; or (ii) there are no Accepted Representations made by You in relation to the Show Cause Notice.