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<br />6. Draft Authority means the monthly amount of funds that Blue Cross and <br />Blue Shield of Texas is authorized to draw from the Employer's Account <br />for the issuance of Health Benefit Checks. calculated in accordance with <br />Item III of the Exhibit. <br /> <br />7. Cuaulative Draft Authority means the sum of the monthly Draft Authority <br />from the effective date of this Agreement through the month in which the <br />Employer's Account is drafted less the amount, if any. by which any <br />Health Contract Accounting Period Surplus is reduced to zero in <br />accordance with Article III, Section B.2. hereof. In no case shall such <br />cumulative Draft Authority be less than zero. <br /> <br />B. Banking Authorization and Procedures: <br /> <br />1. Blue Cross and Blue Shield of Texas. Inc. is authorized to issue checks <br />drawn on the Employer's Account to employees and providers of seIVices <br />in amounts equal to Health Benefits payable under the Employer's Health <br />Contract. <br /> <br />2. Employer agrees to arrange for Employer's Bank to notify Blue Cross and <br />Blue Shield of Texas. Inc. of the dollar amount of checks clearing <br />Employer's Bank each month by copy of a Bank Statement or other document <br />acceptable to Blue Cross and Blue Shield of Texas. Inc. <br /> <br />3. Employer agrees to maintain, or arrange for the transfer of. sufficient <br />funds in Employer's Account to cover all amounts drafted on the account <br />up to the cumulative monthly Draft Authority amount. <br /> <br />4. Blue Cross and Blue Shield of Texas. InC. agrees to fund or reimburse <br />Employer's Account for any amount paid in excess of cumulative Draft <br />Authority for any month said cumulative Authority Draft is exceeded upon <br />receipt by Blue Cross and Blue Shield of Texas, Inc. of a bank <br />statement, or other notice acceptable to Blue Cross and Blue Shield of <br />Texas. Inc.. from the Employer or Employer's Bank showing that <br />cumulative Draft Authority has been reached. If notice is not given. <br />Employer will continue to provide sufficient funds in Employer'S <br />Account to cover all amounts drafted on the account. As soon as funds <br />become available in the Employer's Account. Blue Cross and Blue Shield <br />of Texas. Inc. will draft the account for reimbursement of the amounts <br />paid into the Employer's Account as reflected in the Suspense Account <br />subject to adjustments made for Specific Health Stop Loss Benefits paid. <br />if any. <br /> <br />C. Benefit Checks to the extent ultimately reimbursed or paid from the employer's <br />Account shall be considered self-insured benefits. not a Health Contract <br />Benefit. <br /> <br />III - CONSIDERATION: SE'1'TLEHKII'TS <br /> <br />A. On the first of each month the Employer will remit to Blue Cross and Blue <br />Shield of Texas. Inc. the Health Contract Administration Charge. and if <br />applicable. the Specific Health Contract Stop Loss Premium. <br /> <br /> <br />+v <br /> <br />