TO THE SUPPLIER AND THE SUPPLIER
SHALL PAY TO THE BANK IN RESPECT OF SUCH ACCOUNT RECEIVABLE AN AMOUNT EQUAL TO
AND IN THE SAME CURRENCY AS THE UNPAID AMOUNT OF SUCH ACCOUNT RECEIVABLE
TOGETHER WITH THE DISCOUNT RATE CHARGE CALCULATED IN ACCORDANCE WITH CLAUSE
7.2.1. SUCH CUT OFF DATE SHALL BE NOTIFIED BY THE BANK TO THE SUPPLIER, BUT
FAILURE TO NOTIFY SHALL NOT AFFECT THE PAYMENT OBLIGATIONS OF THE SUPPLIER
HEREUNDER.
7.3
DEFAULT INTEREST
7.3.1
IN THE EVENT THAT ANY AMOUNT PAYABLE BY THE SUPPLIER
PURSUANT TO CLAUSE 7.2 OR THIS CLAUSE 7.3 REMAINS UNPAID ON THE DATE ON WHICH IT
BECOMES DUE AND PAYABLE THE BANK SHALL CHARGE AND THE
12
SUPPLIER SHALL PAY INTEREST FROM TIME TO TIME ON ANY SUCH UNPAID AMOUNT DUE FROM
THE SUPPLIER TO THE BANK DURING THE PERIOD FROM (AND INCLUDING) THE DUE DATE
THEREOF TO (BUT EXCLUDING) THE DATE PAYMENT IS RECEIVED BY THE BANK IN FULL, AT
A RATE EQUAL TO THE AGGREGATE OF (I) THE DISCOUNT RATE APPLICABLE PURSUANT TO
THE MOST RECENT PRICING SCHEDULE (CALCULATED BY REFERENCE TO SUCH CALCULATION
PERIODS ENDING ON OR BEFORE THE DATE PAYMENT IS MADE IN FULL AS THE BANK MAY
SELECT AND NOTIFY TO THE SUPPLIER FROM TIME TO TIME ) AND (II) 2% PER ANNUM.
7.3.2
SUCH INTEREST CALCULATED PURSUANT TO CLAUSE 7.3.1
SHALL BE PAYABLE BY THE SUPPLIER AT THE END OF EACH CALCULATION PERIOD SELECTED
AND NOTIFIED BY THE BANK (AS REFERRED TO ABOVE) BY REFERENCE TO WHICH INTEREST
IS CALCULATED AND SHALL BE BILLED TO THE SUPPLIER AND PAID SEPARATELY FROM ANY
OTHER AMOUNTS OWING UNDER THIS AGREEMENT.
8
INDEMNITIES
8.1
THE SUPPLIER SHALL PAY TO THE BANK ON DEMAND
ON A FULL INDEMNITY BASIS:
(A)
ALL REASONABLE COSTS, CHARGES AND EXPENSES
INCLUDING LEGAL COSTS, IN RELATION TO THE ENFORCEMENT OF THIS AGREEMENT AND ANY
PURCHASE PACK; AND
(B)
ALL STAMP, DOCUMENTARY, REGISTRATION OR OTHER
LIKE DUTIES OR TAXES (OTHER THAN TAXES BASED ON BANK'S INCOME), INCLUDING
WITHHOLDING TAXES AND ANY PENALTIES, ADDITIONS, FINES, SURCHARGES OR INTEREST
RELATING THERETO, OR ANY NOTARIAL FEES WHICH ARE IMPOSED OR CHARGEABLE ON OR IN
CONNECTION WITH THIS AGREEMENT OR ANY PURCHASE PACK OR THE PURCHASE BY THE BANK
OF ANY ACCOUNT RECEIVABLE.
8.2
THE SUPPLIER AGREES TO INDEMNIFY THE BANK ON
DEMAND AGAINST ANY LOSS OR EXPENSE (INCLUDING, BUT NOT LIMITED TO, ANY LOSS OF
THE MARGIN OR ANY OTHER LOSS OR EXPENSE SUSTAINED OR INCURRED BY THE BANK IN
LIQUIDATING OR EMPLOYING DEPOSITS ACQUIRED OR CONTRACTED FOR TO EFFECT ITS
ACQUISITION OF AN ACCOUNT RECEIVABLE) WHICH THE BANK HAS SUSTAINED OR INCURRED
AS A CONSEQUENCE OF A PURCHASE OF AN ACCOUNT RECEIVABLE NOT BEING MADE FOLLOWING
THE SERVICE OF A PURCHASE PACK FOR ANY REASON WHATSOEVER.
9
TERMINATION EVENTS
9.1
EACH OF THESE EVENTS OR CIRCUMSTANCES IS A
TERMINATION EVENT:
(A)
NON-PAYMENT - THE BUYER DOES NOT PAY ON THE
DUE DATE ANY AMOUNT PAYABLE PURSUANT TO THE COMMERCIAL CONTRACT AT THE PLACE AND
IN THE CURRENCY IN