Within the Theory of Imbalance of Energy (TIE), interaction is represented through explicitdynamical degrees of freedom rather than instantaneous force laws. This paper examines thetemporal structure that arises when these imbalance variables are eliminated to obtain reduceddescriptions involving configuration variables alone.Building on the extended least-action formulation developed in Paper 1, it is shown that finiteredistribution times of imbalance generically lead to effective memory and delayed interaction inreduced equations of motion. These effects arise without modification of the variational principleand without introducing stochasticity, dissipation, or acausal dynamics. The full system remainsdeterministic and local in time when expressed in the extended state space.The purpose of this paper is to identify the formal origin of memory and delay in classicalinteraction and to clarify the distinction between fundamental determinism and effective temporal nonlocality. No specific physical systems are analyzed. Applications to force emergence,inertia, and multi-body dynamics are deferred to subsequent papers