Priority Rate definition
Examples of Priority Rate in a sentence
No Member shall be obligated to lend or advance money to the Company for any purpose; provided, however, that if so determined by the Board, the Company may require the Members to advance funds (which advances will bear interest at the Priority Rate) to the Company pro rata according to their holdings of Class A Units in order to maintain an appropriate level of working capital necessary to conduct the operations of the Company.
Carrier reserves the right to charge a transport fee for Shipper’s linefill upon withdrawal, which shall not exceed Shipper’s Priority Rate.
By way of example, if the Delay Period is equal to thirty (30) Days, then Shipper’s Priority Rate and Shipper’s Uncommitted Rate will be $0.375 per Barrel and $0.370 per Barrel, respectively, for only the first 30 Days after the Commencement Date and on the 31st Day after the Commencement Period, Shipper’s Priority Rate and Shipper’s Uncommitted Rate shall be as set out in Article VIII and Exhibit B.
By means of example, if Gatherer connects a requested Receipt Point fifty (50) Days after the Target In- Service Date for such additional Receipt Point, and such delay is not due to an event of Force Majeure, then the reduction in Shipper’s Priority Rate and Shipper’s Uncommitted Rate described in the preceding sentence would apply to Shipper Crude Oil received at such additional Receipt Point for the first twenty (20) Days after such additional Receipt Point is connected.
If, any time during the Term of this Agreement, Carrier agrees to provide any Third Party Shipper rates on the Pipeline System or any expansion of the Pipeline System, and such rates are less than the Priority Rate, then Carrier will (i) immediately notify Shipper in writing of such agreement and (ii) offer Shipper the same lower rates as of the date that Carrier begins providing the lower rates to the Third Party Shipper.
Note: The Priority Rate shall be subject to adjustment as set forth in Section 5.2 of this Agreement.
However, Gatherer shall have the right, but shall have no obligation, to (or cause its designee to) truck all or a portion of such Shipper Crude Oil as contemplated above and Shipper shall pay Gatherer Shipper’s Priority Rate with respect to such trucking services.
Without the prior written consent of Shipper, Carrier shall not provide interstate or intrastate transportation service to any shipper on any Pipeline Segment or on the Pipeline System at rates less than the Shipper’s Priority Rate for any level of service on the same Pipeline Segment or on the Pipeline System as provided to Shipper hereunder.
Any such Contribution Loan shall bear interest at the greater of (i) 22% per annum compounded monthly, or (ii) four percentage points plus the Priority Rate per annum compounded annually, but in either event not to exceed the maximum amount permitted by applicable law, and shall otherwise be on commercially reasonable terms and conditions.
On each anniversary of the Effective Date, Carrier shall adjust the Priority Rate by the Fee Adjustment Multiplier in effect as of such date.