WITHDRAWAL DURING CONTRACT PERIOD Clause Samples
WITHDRAWAL DURING CONTRACT PERIOD. 17.3.1 The Escrow Account shall, inter alia, provide for a priority order for payment to be made out of it at the beginning of every Payment Period. The order of priority shall be as given below:
a. All payments towards taxes and other statutory levies, as applicable to the Authority in respect of the Project;
b. All payments to the Operator towards O&M Fee;
c. All payments to the Operator towards Damages;
d. Any other payment as due and payable to the Operator by the Authority;
e. Intentionally Left Blank;
f. Costs and expenses incurred by the Authority in accordance with the provisions of this Contract, including but not limited to payment of employee salary, administrative expenses etc.;
g. Balance funds to flow to the Authority, subject to the maintenance of balance of amount equivalent to {2 (two) months} estimated payment of O&M Fee to the Operator. Provided however, if at any time during the Contract Period, adequate amount is not available in the Escrow Account for meeting any payments due to the Operator under Clause 17.3 (b) to (e), then in such an event the Authority shall pay the amount in question to the Operator from its own financial sources. In the event of failure on the part of the Authority to make the payment either through the funds available in the Escrow Account or through its own financial sources, it shall tantamount to Authority Event of Default thereby entitling the Operator to terminate the Contract.
WITHDRAWAL DURING CONTRACT PERIOD. The Operator shall, at the time of opening the Escrow Account, give irrevocable instructions, by way of an Escrow Agreement, to the Escrow Bank instructing, inter alia, that deposits in the Escrow Account shall be appropriated in the following order every month, or at shorter intervals as necessary, and if not due in a month then appropriated proportionately in such month and retained in the Escrow Account and paid out therefrom in the month when due:
a. All payment towards taxes and other statutory levies, as applicable to the Operator in respect of the Project;
b. All payments to the Authority towards [System Management Fee]55, [cost towards insurance premium(s)]56 and any other payment due to the Authority;
c. All payments towards Penalty and Damages certified by the Authority as due and payable to it by the Operator;
d. Costs and expenses incurred by the Operator for operation and maintenance of the Project Facilities in accordance with the provisions of this Contract, including payment of staff salary, administrative expenses, payment to sub-contractors, etc.;
e. Balance funds to flow to the Operator, [subject to the maintenance of balance of an amount equivalent to {2 (two) months} estimated System Management Fee to the Authority]57. Provided however, if at any time during the Contract Period, adequate amount is not available in the Escrow Account for meeting any payments due to the Authority under Clause 17.3(b) & (c), then in such an event the Operator shall pay the amount in question to the Authority from its own financial sources. In the event of failure on the part of the Operator to make the payment either through the funds available in the Escrow Account or through its own financial sources, the Authority shall be entitled to recover the amount due by invoking the Performance Security of the Operator.