33:01 Maintenance of Satisfactory Security
(A) Requirement
It is the essence of the ITA and all ITA Engagement Contracts, and a condition precedent to the engagement of the Artist, which the Theatre shall file and maintain with Equity satisfactory security as required by this Clause. Such satisfactory security shall include agreements in the form of Letters of Credit and Security Agreements.
(B) Liability
If contracts are issued to Artists without the Theatre having posted security in accordance with Clause 33:02, upon notification by Equity, the Theatre shall be liable for payment of one (1) week's minimum fee for each contract so issued, unless proper security is arranged within one (1) business day, such monies to be payable to Equity to be used for unsatisfied judgements.
33:02 Calculation of Amount
(A) Standard and Peak Security Requirements
(i) Forms of Acceptable Security
The Theatre shall be ineligible to engage Equity members unless and until it shall have arranged or deposited with Equity cash, a Letter of Credit (using sample wording provided by Equity), or an Equity approved Bond Insurance Program surety sufficient to ensure the payment of Artist's contractual fees for the maximum number of Artists to be engaged during a production or season.
(ii) Calculation of Amount
The cash, Letter of Credit, or Equity approved Bond Insurance Program surety shall be equal to contractual fees for two (2) weeks (for Directors, Choreographers and Fight Directors contracted on a per production basis the security required is the total contractual fee) plus an additional percentage equivalent to the percentage total of GST, HST, or QST dependent on the Theatre’s Point of Origin for each Artist engaged by the Theatre.
(iii) Security Increase Required For Touring
In the case of touring, the security shall be increased by the equivalent of fourteen (14) days of the Artists' per diem. Letters of Credit may include an expiry date, provided said expiry date occurs at least two (2) months after the close of a season or production. Letters of Credit will be released before expiry if requested, once all contractual obligations to Equity and its members have been met.
(B) Peak Security
(i) Theatre’s Ability to Post Peak Security
With Equity’s prior written approval a Theatre that has produced at least three seasons under the full terms and conditions of the Independent Theatre Agreement, and which are not in arrears with remittances and do not have a history of such arrears, may calculate the amount of security on a "peak" basis. Peak is the consecutive two week period of the season with the highest cumulative amount of contractual fees. For the purpose of this determination and calculation, the full contractual fee for a Director, Choreographer or Fight Director shall be included in the first week of the rehearsal period of the Artist’s engagement. The amount of security required shall be equal to the sum of the Artists’ contractual fees for this peak period, plus an additional percentage equivalent to the total of GST, HST, or QST dependent on the Theatre’s Point of Origin for each Artist engaged by the Theatre.
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(ii) Summary Requirements For Peak Security
The Theatre shall provide Equity with a detailed summary of the productions in the season, the number of Artists to be engaged in each discipline, the dates of engagement, and the anticipated contractual fees for the Artists to support this calculation. This amount shall be deposited with Equity in cash, by Letter of Credit (using the sample wording provided by Equity), or an Equity approved Bond Insurance Program surety prior to issuing any ITA Engagement Contract for the season, which shall be maintained for the duration of the season, and released on request following the conclusion of the final production subject to Clause 33:03. Should the amount of security required by this calculation increase during the season based on the actual amount of the negotiated contractual fees, the Theatre shall augment the security deposited with Equity in accordance with Clause 33:01.
33:03 Release
Letters of Credit or cash deposits will be released within ten (10) business days of receipt of a written request for same, where all contractual obligations to Equity and its members have been met. Equity agrees to contact the Equity Deputy and/or members of the company where a confirmation of fulfillment of the Theatre's contractual obligations has not been received from the Deputy in reference to a request for a release, and agrees to process the release or partial release if requested where it can satisfactorily verify the fulfillment of the contractual obligations.
In the case of Joint Productions produced under Article 54:00, the security for each partner in the Joint Production shall be released according to the above provisions as each partner's contractual obligations are met.
33:04 Cash Deposits
Where the Theatre deposits cash with Equity, it shall receive interest payments on such deposits as may be agreed upon in writing between the Theatre and Equity.
33:05 Theatres in Arrears
Where Equity can demonstrate that a Theatre is substantially or repeatedly in arrears with remittances (see Clause 16:17), as stipulated in the ITA, Equity shall have the right to increase the amount of security required. Where Equity requires an increase to the amount of security, the Theatre shall immediately provide such an increase. However, if the Theatre disputes the increase, it may, after having provided the increase, have recourse to the provisions of Article 52:00 for the relief of this requirement.
33:06 Drawing Upon Security
No Equity member shall work, or be required to work or continue in the engagement of any Theatre, if and when the security arrangements shall not meet the requirements of this Article. In addition to the provisions of Clause 11:01 and Article 52:00, Equity may draw upon the securities posted to meet payment to Artists of unpaid fees, including payments for additional services, applicable service taxes, deducted dues payments and joining fees, remittances to Equity (see Clause 16:17), and transportation costs of the Artist to the point of origin and return to the Artist's place of residence (see Clause 16:09), provided that it shall simultaneously inform the Theatre of its action. However, the Theatre recognizes Equity's need to protect the interests of its members in an emergency, and, therefore, should it prove impossible to contact the Theatre or its authorized representative in an emergency, Equity may proceed to draw upon security.
34:00 ENGAGEMENT CONTRACTS