The
purpose of the AA system is to stop GLN members from being tardy
on their monthly accounts receivable payments to other members and
as a potential "problem indicator".
The following table is an "indication" of when monthly payments
should be paid and when the AA system should be utilized.
Please be sure to settle disputes BEFORE sending any AR/AA action
requests to the GLN President.
GLN Platinum members must follow the guidelines in order for
potential compensation to be considered if the offending member
goes bankrupt/insolvent. ONLY Platinum Members can be considered
for compensation from the AR fund. In some circumstances the fund
may be used to offset monies owed- even if a member is not
bankrupt/insolvent but may have resigned from the Network.
It is the sole responsibility of GLN members to alert GLN if any
other GLN member abuses the agreed credit
arrangements.
This system is for the benefit of ALL GLN members.
Failure to follow these minimum guidelines may result in
compensation claims by Platinum members to be denied. It is the
prerogative of the AR Committee (GLN , Detraco Germany and
Triway's Sydney, Australia) to determine use of the AR Fund.
Effective from December 15th, 2007 GLN staff
will send out a reminder, at the same time each month, requesting
if any members are have surpassed AA payment deadlines. If you do
not report any offenders then it will not be part of any future
consideration for claim against the AR fund.
Step
1: General Principals
Monthly
Statement for Month 1 to be issued by the 10th and no later
than the 15th day of Month 2. Statements of Accounts
with other members shall include all activities during the
preceding month (including Profit Share details if
applicable).
By no later
than the 15th of the month, a Net Settlement between members
shall be agreed upon in the event that both parties have
open transactions and have previously agreed to “contra”
arrangements. The Net Settlement covering Month 1
shall be settled (or contra-settled) by
no later than the 30/31st day of Month 2. Settlement
shall be made by whatever means have previously been agreed
upon; normally in the currency of issue with Banking Fees
paid by the originator.
Step 2: Alert
GLN
GLN President
to be alerted if funds not received by the 15th day of Month
3. (If Platinum members do not follow these timelines they
may not be compensated from the fund if circumstances
otherwise dictate). Interest shall accrue at a rate of
1.5% per month on balances not paid by the 15th day of Month
3.
Step
3: GLN Intervenes
GLN will send
a 1st email requesting payment upon receipt of advice
GLN will send
2nd Final Reminder to offending member if payment has not
been made by 25th day of Month 3.
Step 4: Amber
Alert Issued
If Monthly
Statement is not settled by the last day of Month 3, Member
will be placed on the Amber Alert List; all GLN Members
notified accordingly and only removed when payment has been
confirm and all other GLN Members confirm that offender is
current with them.
The maximum payment cycle time
allowed for all members is as per the table above. Any agreement
between members to different credit terms and not within the AA
time lines stated, will exclude them from any claim against the AR
fund.