Section 8. Recovery of Costs in Cases of Ineligible Participation.

1. Circumstances under which liability exists. The responsible Producer and Writer shall be jointly and individually liable to the Health Fund for the amounts described in subsection (b), below, where the Producer makes or participates in making contributions to the Health Fund on behalf of a Writer under these circumstances:
   
   1. where the Writer has not performed writing services covered by a collective bargaining agreement, or
      
   2. where the contributions for the Writer are in an amount greater than that called for by the collective bargaining agreement, or
      
   3. where as a result of the contributions the Writer or another person receives benefits for which the Writer or other person is not eligible under the Health Fund's rules.
      
2. Amount of liability. Under the circumstances listed in subsection (a), above, the Producer and the Writer shall be jointly and individually liable to the Health Fund for:
   
   1. the sum of (A) the greater of (1) the cost to the Health Fund of insurance premiums the Health Fund paid, or (2) benefits the Health Fund's insurance carrier paid on behalf of the Writer or other person, and (B) the benefits the Health Fund paid on behalf of the Writer or other person; and
      
   2. the Health Fund's audit costs; costs of collection (including attorneys fees and costs of suit); and interest at the rate of 10% per year on the monies the Health Fund or its insurance carrier paid, from the date the monies were paid.
      
3. Definitions. For purposes of this Section 8, the term "Writer" includes a person on whose behalf a Producer or other person makes contributions to the Health Fund, even if that person is not a Writer within the meaning of Article I, Section 5; and the term "Producer" includes a person or entity making contributions to the Health Fund, even if the person or entity is not a Producer within the meaning of Article I, Section 2.