Trailing Payments Clause Samples
The Trailing Payments clause defines the obligation to make payments that are due after the main contractual relationship or service period has ended. Typically, this clause applies to situations where certain fees, commissions, or other financial obligations accrue during the contract but are only calculated and paid out after its conclusion, such as final performance bonuses or post-termination royalties. Its core function is to ensure that all parties are compensated for entitlements that arise from the contract, even if those payments are not immediately due upon termination, thereby preventing disputes over outstanding financial obligations.
Trailing Payments. After payment by the Company of any Claim Amount hereunder, any and all Trailing Payments (appropriately endorsed) shall be promptly remitted by the Insured to the Company.
Trailing Payments. The last sentence of Section 2.8(a) is amended and restated in its entirety to read as follows: “The Purchaser’s obligations hereunder to honor checks, drafts and withdrawal orders on forms provided by the Seller and carrying the Seller’s imprint (including name and transit routing number) shall not apply to any such check, draft or withdrawal order (i) presented to the Purchaser more than ninety (90) days (or, one hundered and eighty (180) days if presented by Southern Illinois University) following the Closing Date or (ii) on which a stop payment has been requested by the depositor.” The first two sentences of Section 2.8(c) are amended and restated in their entirety to read as follows: “The Seller and the Purchaser shall make arrangements to provide for the daily settlement with immediately available funds by the Purchaser of checks, ACH charges or debits, drafts, withdrawal orders, debit card trailing activity and returns presented and paid by Seller for the period between the Closing Date and ninety (90) days after the Closing Date and which are drawn on or chargeable to Deposit Liabilities transferred to the Purchaser; provided, however, that such period shall be one hundered and eighty (180) days in the case of any checks, ACH charges or debits, drafts, withdrawal orders, debit card trailing activity and returns presented and paid by Seller with respect to Southern Illinois University. After the expiration of such applicable period following the Closing Date, the Seller shall dishonor all checks, drafts, withdrawal orders and other instruments and items drawn on the Deposit Liabilities which are presented in any manner to the Seller, unless the Seller and the Purchaser agree to extend such applicable period and extend the provision for a settlement account as necessary.” The last sentence of Section 2.8(d) is amended and restaed in its entirety to read as follows: “In connection with the obligations under Section 2.4(b) hereof, the Purchaser and the Seller shall cooperate in good faith (i) to determine the method and timing for remitting to the Purchaser and settling, for up to a ninety (90) day period (or, for a one hundered and eighty (180) day period if related to Southern Illinois University) following the Closing Date , ACH direct deposits and FedWire direct deposits relating to accounts constituting Deposit Liabilities, as well as such other matters relating thereto as may be necessary or advisable for purposes of assuring an orderly transitio...