Stipulations upon Deduction Sample Clauses
The "Stipulations upon Deduction" clause defines the specific conditions and requirements that must be met before any deductions can be made from payments owed under a contract. Typically, this clause outlines the types of deductions permitted, such as for defective work, late delivery, or outstanding obligations, and may require prior notice or documentation before a deduction is applied. Its core practical function is to ensure transparency and fairness in the deduction process, preventing arbitrary or unjustified reductions in payment and thereby protecting both parties' financial interests.
Stipulations upon Deduction. As authorized by the Guarantor, when the Debtor or the Guarantor has any mature and payable debt, the Debtee has the right to deduct certain fund, for settlement purposes, in an account established for the benefit of the Guarantor in Bank of Communications.
Stipulations upon Deduction. 5.1 As authorized by the Mortgagor, when the Mortgagor or the Mortgagor has any mature and payable debt, the Mortgagee has the right to deduct certain fund, for settlement purposes, in an account established for the benefit of the Mortgagor in Bank of Communications.
5.2 Following deduction, the Mortgagee shall notify the Mortgagor of the deduction-associated account no., master contract no., Credit Line Application no., contract no., deducted amount, and debt balance.
5.3 In the event when the deducted amount fails to pay off all the debt, the fund shall be deducted firstly for offset of due and unpaid costs and then for following purposes as stipulated:
(1) With respect to any principal and interests less than 90 overdue under loans (excluding individual loans) or trade financing services (excluding export factoring), the balance after offset shall be used firstly in compensating due and unpaid interests or default interests, compound interests, and then in satisfying the due and unpaid principal; with respect to any principal and interests no less than 90 overdue under loans (excluding individual loans) or trade financing services (excluding export factoring), the balance after offset shall be used firstly in satisfying the due and unpaid principal, and then in compensating due and unpaid interests or default interests, and compound interests;
(2) Under bank acceptance bills drawing, credit letters establishment, letters of guaranty issuing, and export factoring services, the balance after offset shall be used firstly in satisfying the due and unpaid principal, and then in compensating due and unpaid interests or default interests, and compound interests;
(3) Under individual loaning services, the debt setoff sequence shall be consistent with provisions under the master contract.
5.4 In the event where any currency inconsistency occurs between the deducted fund and the debt to be satisfied, the amount of the debt to be satisfied will be converted in accordance with the exchange rate published upon deduction by the Bank of Communications.