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( to take over the care, operation, and maintenance of the Project Worka, pursuant to the applicable proviaiona of this contract. CHARGES FOR DELINQUENT PAYMENT 15. (a) The Contractor shall be subject to intereat, administrative and penalty charges on delinquent installments or payments. When a payment is not received by the due date, the Contractar shall pay an interest charge for each day the payment is delinquent beyond the due date. When a payment becomes 60 days delinquent, the Contractor shall pay an administrative charge to cover additional costs of billing and processing the delinquent payment. When a payment is delinquent 90 days or more, the Contractor shall pay an additional penalty charge of 6 percent per year for each day the payment is delinquent beyond the due date. Further, the Contractor shall pay any fee8 incurred for debt collection services asaociated with a delinquent payment. (b) The interest charge rate shall be the greater of the rate prescribed quarterly in the Federal Register by the Depariment of the Treasury for application to overdue payments, or the interest rare of 0.5 percent per month prescribed by section 6 of the Reclamation Project Act of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due date and remain fixed for the duration of the delinquent period. (c) When a partial payment on a delinquent account is received, the amount received shall be applied first to the penalty, second, to the administrative charges, third to the accrued interest, and finally to the overdue payment. �SNERAL OBLIGATION - BENEF�TS CONDITIONED UPON PAYMENT 16. (a) The obligation of the CoAtractor to pay the United States as provided in this contract is a general obligation of the Contractor notwithstanding the manner in which the obligation may be distributed among the Contractor's water users and notwithstaoding the default of individual water users in their obligations to the Contractor. (b) The payment of charges becoming due hereunder is a condition precedent to receiving benefits under triis contract. The Contractor shall not furnish water made available pursuant to this contract for lands or parties which are in arrears in the advance payment of water rates levied or established by the Contractor. OPERATION AND MAINTENANCE OF PROJECT WORKS - PAYMENT OF MISCELLANEOUS COSTS 17. (a) The Contractor, without expense to the United States, shall care for, operate, and maintain the Project Works in full compliance with the terms of this contract, and in such manner that the Project Works remain in good and efficient condition. (b) Necessary repairs of the pro�ect Works shall be made promptly by rhe Contractor. In case of unusual conditions or serious deficiencies in Che care, operation, and maintenance of the Project Works threatening or causing interruption of water service, the Contracting Officer may issue to the 23