8 - Fees & Charges
8.1 Save as they may be amended under Rule 8.9, our fees for the operation of the Scheme, including the maintenance of the Contract Account, will dependent upon the level of the Base Rate.
8.2 Fees shall be charged on the 1st day of every month (each, a ‘Fee Date’) and shall be calculated by reference to the account balance and the Base Rate at 23:59 on the last day of the prior month.
8.3 When the reference Base Rate is 3.75% or above, the following fees will apply:
8.3.1 For Tier 1 Contract Accounts
(a) On the first two Fee Dates following the first opening of a Contract Account, no fees will be charged;
(b) From (and including) the third Fee Date following the first opening of a Contract Account:
(i) On each Fee Date where the applicable balance of the Contract Account is £5,000 or more, no fees will be charged; and
(ii) On each Fee Date where the applicable balance of the Contract Account is less than £5,000, we will charge a fee of £20 plus VAT.
8.3.2 For Subcontract Accounts
(a) No fees will be charged.
8.4 When the reference Base Rate is below 3.75% but greater than or equal to 0%, the following fees will apply:
8.4.1 For Tier 1 Contract Accounts
(a) On the first two Fee Dates following the first opening of a Contract Account, no fees will be charged; and
(b) From (and including) the third Fee Date following the first opening of a Contract Account we will charge a fee of the greater of (a) £20 plus VAT, or (b) 0.2% of the applicable balance of the Contract Account plus VAT.
8.4.2 For Subcontract Accounts
(a) £20 plus VAT.
8.5 When the reference Base Rate is below 0%, the following fees will apply:
8.5.1 For Tier 1 Contract Accounts
(a) On the first two Fee Dates following the first opening of a Contract Account, no fees will be charged; and
(b) From (and including) the third Fee Date following the first opening of a Contract Account we will charge a fee of the greater of (a) £20 plus VAT, or (b) the sum of all negative interest or equivalent fees payable to the Deposit Bank in respect of the Contract Account plus 0.2% of the applicable balance of the Contract Account plus VAT.
8.5.2 For Subcontract Accounts
(a) £20 plus VAT.
8.6 Any fees due in accordance with this Rule will be deducted from the Contract Account each month on the relevant Fee Date.
8.7 If at any time there is insufficient cash in the Contract Account to cover the cost of the fees for the month, we will notify both parties to the relevant Contract of the deficit, and state the amount of additional cash that is required to be deposited into the account to cover the deficit.
8.8 You and the counterparty to the relevant Contract will be jointly and severally liable to contribute pay the fee shortfall into the Contract Account. If the requested sum is not paid into the account within 10 Business Days of receipt of our notice under Rule 8.7, the Contract Account will be closed and the Contract will be discharged from the Scheme.
8.9 We may update the fee rates and reference Base Rate thresholds set out in this Rule from time to time, however once a Contract has been accepted into the Scheme, the rates applicable at the time the Contract is accepted into the Scheme will apply to that Contract Account until the Contract is discharged from the Scheme.