Acceptable Forms of Security. At the XXXX Supplier’s choice, the following are deemed to be acceptable for posting Margin Collateral if required:
(a) cash credited to a deposit account of the Companies; and
(b) a Letter of Credit, which shall state that such Letter of Credit will renew automatically for successive one-year or shorter periods, until terminated upon at least ninety (90) days’ prior written notice from the issuing financial institution. If the Companies receive notice from the issuing financial institution that the Letter of Credit is being cancelled, the XXXX Supplier will be required to provide a substitute Letter of Credit from an alternative bank satisfying the minimum credit rating set forth in the definition of “Letter of Credit”. The receipt of the substitute Letter of Credit must be effective as of the cancellation date and delivered to the Companies thirty (30) days before the cancellation date of the original Letter of Credit. If the XXXX Supplier fails to supply a substitute Letter of Credit as required, then the Companies will have the right to draw on the existing Letter of Credit and to hold the amount as Margin Collateral, as applicable. If the credit rating of a bank or other financial institution from which a XXXX Supplier has obtained a Letter of Credit falls below the levels set forth in the definition of “Letter of Credit”, the XXXX Supplier will immediately notify the Companies and, within one (1) Business Day of the failure of the financial institution to meet the required credit rating, obtain a suitable Letter of Credit from another bank or other financial institution that meets those standards, unless such period is extended in writing by Companies; or
(c) with respect to Surplus Margin only the delivery or pledge of First Mortgage Bonds of the XXXX Supplier or its Guarantor, which First Mortgage Bonds shall conform to the requirements set forth in Appendix G and otherwise be in form, amount and substance satisfactory to the Companies in their sole discretion. For purposes of this subsection (c),
Acceptable Forms of Security. At each SSO Supplier’s option, the following are deemed to be acceptable for posting Margin Collateral or ICR Collateral, if required:
(a) Cash credited to a deposit account of Duke Energy Ohio; and
(b) A Letter of Credit, which shall state that such Letter of Credit will renew automatically for successive one-year or shorter periods, until terminated upon at least ninety (90) days’ prior written notice from the issuing financial institution. If Duke Energy Ohio receives notice from the issuing financial institution that the Letter of Credit is being cancelled, the SSO Supplier will be required to provide a substitute Letter of Credit from an alternative bank satisfying the requirements in this Section 5.9. The receipt of the substitute Letter of Credit must be effective as of the cancellation date and delivered to Duke Energy Ohio thirty (30) days before the cancellation date of the original Letter of Credit. If the SSO Supplier fails to supply a substitute Letter of Credit as required, then Duke Energy Ohio will have the right to draw on the existing Letter of Credit and to hold the amount as Margin Collateral or ICR Collateral, as applicable. The Letter of Credit shall be issued by a U.S. commercial bank with total assets of at least $5 billion having a general long-term senior unsecured debt rating of A- or higher as rated by S&P or A3 or higher as rated by Xxxxx’x or other financial institution reasonably acceptable to Duke Energy Ohio and shall permit presentation at a bank located in the United States of America. If at any time the bank or other financial institution from which an SSO Supplier has obtained a Letter of Credit fails to meet the foregoing conditions, the SSO Supplier will immediately notify Duke Energy Ohio and, within one (1) Business Day of the failure of the financial institution to meet the required conditions, obtain a suitable Letter of Credit from another bank or other financial institution that meets those standards, unless such period is extended in writing by Duke Energy Ohio. For avoidance of doubt, SSO Supplier may elect to substitute a cash deposit for the Letter of Credit within the time frame specified herein. Notwithstanding anything in this Agreement to the contrary, Duke Energy Ohio may exercise any rights or claims to any collateral posted, delivered or pledged to them under this Agreement, before, after, concurrently with, or to the exclusion of, any other collateral posted, delivered or pledged prior to applying an...
Acceptable Forms of Security. At the XXXX Supplier’s option, the following are deemed to be acceptable for posting Margin Collateral or ICR Collateral, if required:
(a) Cash credited to a deposit account of AEP Ohio; and
(b) A Letter of Credit, which shall state that such Letter of Credit will renew automatically for successive one-year or shorter periods, until terminated upon at least ninety
Acceptable Forms of Security.
a) At each SSO Supplier’s choice, the following are deemed to be acceptable for posting Margin Collateral or ICR Collateral, if required:
(i) cash credited to a deposit account of AES Ohio; or
(ii) a Letter of Credit in the form set forth in Appendix D and which shall state that such Letter of Credit will renew automatically for successive one-year or shorter periods, until terminated upon at least ninety (90) days’ prior written notice from the issuing financial institution.
b) If AES Ohio receives notice from the issuing financial institution that a Letter of Credit is being cancelled, the SSO Supplier will be required to provide a substitute Letter of Credit from an alternative bank satisfying the minimum credit rating set forth in the definition of “Letter of Credit”. The receipt of the substitute Letter of Credit must be effective as of the cancellation date and delivered to AES Ohio thirty (30) days before the cancellation date of the original Letter of Credit. If the SSO Supplier fails to supply a substitute Letter of Credit as required, then AES Ohio will have the right to draw on the existing Letter of Credit and to hold the amount as Margin Collateral or ICR Collateral, as applicable.
c) If the credit rating of a bank or other financial institution from which an SSO Supplier has obtained a Letter of Credit falls below the levels set forth in the definition of “Letter of Credit”, the SSO Supplier will immediately notify AES Ohio and, within fifteen
Acceptable Forms of Security. At each SSO Supplier’s choice, the following are deemed to be acceptable for posting Margin Collateral if required:
(a) cash credited to a deposit account of the Companies; andor
(b) a Letter of Credit, which shall state that such Letter of Credit will renew automatically for successive one-year or shorter periods, until terminated upon at least ninety (90) days’ prior written notice from the issuing financial institution. If the Companies receive notice from the issuing financial institution that the Letter of Credit is being cancelled, the SSO Supplier will be required to provide a substitute Letter of Credit from an alternative bank satisfying the minimum credit rating set forth in the definition of
Acceptable Forms of Security. At each SSO Supplier’s option, the following are deemed to be acceptable for posting Margin Collateral or ICR Collateral, if required:
(a) Xxxx credited to a deposit account of AEP Ohio; and
(b) A Letter of Credit, which shall state that such Letter of Credit will renew automatically for successive one-year or shorter periods, until terminated upon at least ninety
