Common use of 1Seller Credit Support Clause in Contracts

1Seller Credit Support. No later than ten (10) Business Days after the Signing Date, Seller shall provide either: (a) a Seller Guaranty from an Acceptable Guarantor in form and substance reasonably satisfactory to Purchaser; (b) a Seller Letter of Credit in form and substance, and from an issuer, reasonably satisfactory to Purchaser; or (c) a cash escrow deposited with a financial institution reasonably acceptable to Purchaser and subject to the collateral security arrangements as are reasonably acceptable to Purchaser, in an amount equal to [ ]% of the Contract Price to secure the obligations of Seller under this Agreement. This amount shall be increased to the Contract Price as of the Closing Date stepping down (on a dollar-for-dollar basis) as the Contract Price is paid through the Final Completion Date. Seller shall have the right in its sole discretion to post a Seller Letter of Credit or a Seller Guaranty (or a combination thereof) for its security posting obligations under this Section 16.1 so long as such security meets the requirements for such security set out in this Article 16. If Seller elects to provide a letter of credit, it shall be an irrevocable standby letter of credit, in form and substance acceptable to Purchaser, from a Qualified Issuer. The letter of credit must be issued for a minimum term of three hundred sixty (360) Days. Seller shall cause the renewal or extension of the letter of credit for additional consecutive terms of three hundred sixty (360) Days until the Expiration Date. Each extension or renewal shall occur no later than forty-five (45) Days prior to each expiration date of the then current letter of credit. If the letter of credit is not renewed or extended as required herein, Purchaser shall have the right to draw immediately upon the letter of credit and to place the amounts so drawn, at Seller’s cost and with Seller’s funds, in an interest bearing escrow account, until and unless Seller provides a substitute form of security meeting the requirements of this Agreement in the form of an irrevocable standby letter of credit.

1Seller Credit Support. No later than ten (10) Business Days after the Signing Effective Date, Seller shall provide eitherPre-COD Credit Assurance to secure the obligations of Seller under this PPA. This amount shall be adjusted to the Post-COD Credit Assurance as of COD. Pre-COD Credit Assurance may only be fulfilled through cash deposit or Seller Letter of Credit. Post-COD Credit Assurance may be fulfilled through a combination of cash deposit, Seller Letter of Credit or Seller Guaranty. The Credit Support shall be: (a) a Seller Guaranty from an Acceptable Guarantor in form and substance reasonably satisfactory to PurchaserCompany for Post-COD Credit Assurance; (b) a Seller Letter of Credit in form and substance, and from an issuer, reasonably satisfactory to PurchaserCompany; or (c) a cash escrow deposited with a financial institution reasonably acceptable to Purchaser Company and subject to the collateral security arrangements as are reasonably acceptable to PurchaserCompany, in an amount equal to [ ]% of the Contract Price to secure necessary Credit Support. For the obligations of Seller under this Agreement. This amount shall be increased to the Contract Price as of the Closing Date stepping down (on a dollarPost-for-dollar basis) as the Contract Price is paid through the Final Completion Date. COD Credit Assurance, Seller shall have the right in its sole discretion to post a Seller Letter of Credit or a Seller Guaranty (or a combination thereof) for its security posting obligations under this Section 16.1 12.1 so long as such the security meets the requirements for such that security set out in this Article 1612. The Seller Guaranty shall be substantially in the form of Exhibit M. If Seller elects to provide a letter of credit, it shall be an irrevocable standby letter of credit, in form and substance acceptable to PurchaserCompany, from a Qualified Issuer. The letter of credit must be issued for a minimum term of three hundred sixty (360) Days. Seller shall cause the renewal or extension of the letter of credit for additional consecutive terms of three hundred sixty (360) Days until the Expiration Scheduled Termination Date. Each extension or renewal shall occur no later than forty-five (45) Days prior to each expiration date of the then current letter of credit. If the letter of credit is not renewed or extended as required herein, Purchaser Company shall have the right to draw immediately upon the letter of credit and to place the amounts so drawn, at Seller’s cost and with Seller’s funds, in an interest bearing escrow account, until and unless Seller provides a substitute form of security meeting the requirements of this Agreement PPA in the form of an irrevocable standby letter of credit.. The Letter of Credit shall be in the substantially the form of Exhibit N.