Appendix I, Rule 3 Payment of overspill claims
Payment of overspill claims
3.1 The funds required to pay any Overspill Claim incurred by the Association shall be provided
(a) from such sums as the Association is able to recover from the other parties to the Pooling Agreement as their contributions to the Overspill Claim, and
(b) from such sums as the Association is able to recover from any special insurance which may, in the discretion of the Association, have been effected to protect the Association against the risk of payments of Overspill Claims, and
(c) from such proportion as the Association in its discretion determines of any sums standing to the credit of such Reserves as the Association may in its discretion have established, and
(d) by levying one or more Overspill Calls in accordance with Rule 5, irrespective of whether the Association has sought to recover or has recovered all or any of the sums referred to in Rule 3.1. paragraph (b) but provided the Association shall first have made a determination in accordance with Rule 3.1 paragraph (c), and
(e) from any interest accruing to the Association on any funds provided as aforesaid.
3.2 The funds required to pay such proportion of any Overspill Claim incurred by any other party to the Pooling Agreement which the Association is liable to contribute under the terms of the Pooling Agreement shall be provided in the manner specified in Rule 3.1 paragraphs (b)-(e).
3.3 To the extent that the Association intends to provide funds required to pay any Overspill Claim incurred by it in the manner specified in Rule 3.1 paragraph (d), the Association shall only be required to pay such Overspill Claim as and when such funds are received by it, provided that it can show from time to time that, in seeking to collect such funds, it has taken the steps referred to in Rule 2.3 paragraphs (a) and (b).