The following is a brief summary of some, but not all, of those obligations, and is qualified in its entirety by the provisions of the by-laws and rules themselves. CSX has no obligation with respect to purchase or possession of any product. Producers must accept or reject POs based on sales terms and conditions to identified buyer. In the case of certain POs and in the event of untimely producer reply, CSX reserves the right to transfer PO to a mutually acceptable alternative producer. When producer accepts a buyer s PO, CSX becomes obligated to effectuate Exercise and Settlement on behalf of producer.
Exercise relates to management of all distribution logistics required to deliver the product.
At the producer s option, CSX will obtain non-recourse credit protection through GE Structured Trade Finance and process all related documentation. CSX will maintain separate accounting and bank account for each producer member. Bank accounts will be maintained at Bank Atlantic and controlled by respective producer through PC banking. CSX will invoice buyers on behalf of producers. CSX will arrange for delivery of cleared product to buyer.