AO-Partners

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  5. CC-ProtectionCC-Protection
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CC-Protection

Loss of receivables outstanding for collect shipments are settled through the CC-Protection trust fund.
AOP pays an initial deposit of EUR 15,000.00 into the CC-Protection-fund. This amount is withdrawn by the depositor at a later stage. Every time a new partner joins, he pays a basic fund fee of EUR 500.00 into the fund once, which is charged at the same time as the membership fee. No further deposits are required for the CC-protection-fund with the exception of supplementary payments to replenish the trust fund in the event of loss. The amount in the trust fund for the CC-protection must always be at least equivalent to the number of partners multiplied by the basic fee of EUR 500.00. Partners are obligated to pay an additional premium as soon as the fond holds only 80% of the minimum deposit to keep the CC-protection running.

Overview of the CC-Protection:
Partners receive a report on the trust fund once a year. The trust fund is monitored and the CC-protection-account managed by Gerhard Summer Risk Management in Munich, the trust fund itself remains with AOP.

Requirements for reimbursements out of the CC-Protection in the event of loss:

  • the fund will only be applicable if both sides have paid partnership fee and the CC-protection-deposit.
  • If an invoice has not been settled after 40 days, the creditor must first send a payment reminder to the debtor, with a copy to AOP as primar information to the CC-protection-program. To follow the rules of the CC-protection AOP will also warn the debtor, offering to intervene and provide advice if anything is unclear, but will also give clear instructions that payment must be made within the next 10 days.
  • If payment still has not been made 60 days after the date of the invoice, and no reasons for this have been given, AOP warns all the partners without delay that no more shipments may be sent to the debtor or are not being covered any more by the CC-protection.
  • The exclusion of the partner of the CC-protection and the AOP-network itself is then to be considered.
  • The receivables are checked by AOP Risk Management in order to prevernt the CC-protection from abuse to determine whether they have been charged fairly (airfreight: net rate + EUR 0.50 is the standard / oceanfreight: net rate + max. % is the standard). The AOP member must explain and furnish proof of special cases.

Exclusions for reimbursements by the CC-protection fund in the case of loss:

  • A possible loss cannot be settled through the trust fund any longer if longer periods for payment are agreed between AOP members, here the CC-protection is not applicable.
  • If a partner fails to observe a AOP dispatch warning about an exclusion from the CC-protection, any further CC-losses cannot be settled through the trust fund.