25.2.2  Deductions

The following deductions will be made from the amount set out in paragraph 25.2.1:

(a)  all credit balances on any bank accounts held by or on behalf of the private party on the Termination Date;

(b)  any amounts owing by the private party to government as at the Termination Date (including any amounts government is entitled to set-off);

(c)  any insurance proceeds paid or payable to the private party (or which would have been payable to the private party if it had complied with its insurance obligations) at any time between the Termination Date and the date of the Termination Payment; and

(d)  all sums due and payable to the private party from the financiers as a result of any prepayment of senior debt89 and any third party amounts paid to the private party at any time during the period between the Termination Date and the date of payment90.

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89 Senior debt will include amounts payable as a result of early termination of hedging arrangements.

90 Upon termination, the private party must assign to government its rights to any claims against third parties which have not been determined or paid by the payment date.