Common use of Acceptable Forms of Security Clause in Contracts

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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO Supplier hereunder or its Guarantor under the guaranty to Duke Energy Ohio or any of them.

Acceptable Forms of Security. At each SSO 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 Duke Energy 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 (90) days’ prior written notice from the issuing financial institution. If Duke Energy AEP Ohio receives notice from the issuing financial institution that the Letter of Credit is being cancelled, the SSO XXXX 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 AEP Ohio thirty (30) days before the cancellation date of the original Letter of Credit. If the SSO XXXX Supplier fails to supply a substitute Letter of Credit as required, then Duke Energy AEP 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 or by a U.S. branch of a foreign 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 Moody’s 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 the XXXX Supplier has obtained a Letter of Credit fails to meet the foregoing conditions, the SSO XXXX Supplier will immediately notify Duke Energy AEP 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 AEP Ohio. For avoidance of doubt, SSO XXXX 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 AEP 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO XXXX Supplier hereunder or its Guarantor under the guaranty Guaranty to Duke Energy AEP Ohio or any of them.

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 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 (90) days’ prior written notice from the issuing financial institution. If Duke Energy AEP 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 AEP 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 AEP 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 or by a U.S. branch of a foreign 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 AEP 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 AEP 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 AEP 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO Supplier hereunder or its Guarantor under the guaranty Guaranty to Duke Energy AEP Ohio or any of them.

Acceptable Forms of Security. At each SSO 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 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 XXXX 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 XXXX 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 the XXXX Supplier has obtained a Letter of Credit fails to meet the foregoing conditions, the SSO XXXX 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 the XXXX 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO XXXX Supplier hereunder or its Guarantor under the guaranty to Duke Energy Ohio or any of them.

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 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 (90) days’ prior written notice from the issuing financial institution. If Duke Energy AEP 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 AEP 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 AEP 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 or by a U.S. branch of a foreign 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 Moody’s 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 AEP 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 AEP 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 AEP 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO Supplier hereunder or its Guarantor under the guaranty Guaranty to Duke Energy AEP Ohio or any of them.

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 Xxxx 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 Moody’s 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO Supplier hereunder or its Guarantor under the guaranty to Duke Energy Ohio or any of them.

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 Xxxx 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO Supplier hereunder or its Guarantor under the guaranty to Duke Energy Ohio or any of them.

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 Moody’s 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO Supplier hereunder or its Guarantor under the guaranty to Duke Energy Ohio or any of them.

Acceptable Forms of Security. At each SSO Supplierthe CRES’s optionchoice, the following are deemed to be acceptable for posting Margin Collateral or ICR Collateral, if requiredPerformance Assurance: (a) Cash cash credited to a deposit account of Duke Energy AEP Ohio; (b) an absolute, unconditional, and irrevocable guarantee issued to AEP Ohio by a parent company or other corporate entity acceptable to AEP Ohio that meets the Credit Requirements. The guaranty shall be drafted in the form attached as Appendix B and otherwise acceptable to AEP Ohio, shall secure all of the CRES’s obligations under the Addendum and shall remain in full force and effect until the earlier of the occurrence of any of the following: (i) all of CRES’s obligations under the Addendum have been satisfied in full and the Addendum has been terminated, (ii) the guaranty is replaced with substitute Performance Assurance meeting the requirements in the Addendum or (iii) the CRES meets the Credit Requirements; and (bc) A 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 AEP Ohio receives notice from the issuing financial institution that the Letter of Credit is being cancelled, the SSO Supplier CRES will be required to provide a substitute Letter of Credit from an alternative bank satisfying the requirements minimum credit rating set forth in this Section 5.9the definition of “Letter of Credit” within three (3) Business Days. The receipt of the substitute Letter of Credit must be effective as of the cancellation date and delivered to Duke Energy AEP Ohio thirty (30) days before the cancellation date of the original Letter of Credit. If the SSO Supplier CRES fails to supply a substitute Letter of Credit as required, then Duke Energy AEP 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 applicablePerformance Assurance. 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 If the credit 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 a CRES has obtained a Letter of Credit fails to meet falls below the foregoing conditionslevels set forth in the definition of “Letter of Credit”, the SSO Supplier CRES will immediately notify Duke Energy AEP Ohio and, within one three (13) Business Day Days of the failure of the financial institution to meet the required conditionscredit 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 Duke Energy AEP Ohio. For avoidance of doubt, SSO Supplier may elect If the CRES fails to supply a substitute a cash deposit for the Letter of Credit within as required, then AEP Ohio will have the time frame specified hereinright to draw on the existing Letter of Credit and to hold the amount as Performance Assurance. The CRES shall also inform AEP Ohio immediately of any changes in its own credit rating or financial condition or the credit rating of its guarantor which, in the case of a CRES, would cause it not to meet the Credit Requirements. Upon the written request of AEP Ohio, the CRES shall affirmatively demonstrate in a manner reasonably satisfactory to AEP Ohio the CRES’s compliance with the creditworthiness standards set forth in this Addendum. Notwithstanding anything in this Agreement Addendum to the contrary, Duke Energy AEP Ohio may exercise any rights or claims to any collateral Performance Assurance posted, delivered or pledged to them under this AgreementAddendum, before, after, concurrently with, or to the exclusion of, any other collateral Performance Assurance posted, delivered or pledged prior to applying any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO Supplier hereunder or its Guarantor under the guaranty to Duke Energy Ohio or any of themAEP Ohio.

Acceptable Forms of Security. At each SSO the PIPP Supplier’s option, the following are deemed to be acceptable for posting Margin Collateral or ICR Collateral, if required: (a) Cash Xxxx credited to a deposit account of Duke Energy 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 (90) days’ prior written notice from the issuing financial institution. If Duke Energy AEP Ohio receives notice from the issuing financial institution that the Letter of Credit is being cancelled, the SSO XXXX 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 AEP Ohio thirty (30) days before the cancellation date of the original Letter of Credit. If the SSO PIPP Supplier fails to supply a substitute Letter of Credit as required, then Duke Energy AEP 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 or by a U.S. branch of a foreign 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 Moody’s 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 the PIPP Supplier has obtained a Letter of Credit fails to meet the foregoing conditions, the SSO PIPP Supplier will immediately notify Duke Energy AEP 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 AEP Ohio. For avoidance of doubt, SSO PIPP 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 AEP 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO XXXX Supplier hereunder or its Guarantor under the guaranty Guaranty to Duke Energy AEP Ohio or any of them.

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 Xxxx credited to a deposit account of Duke Energy 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 (90) days’ prior written notice from the issuing financial institution. If Duke Energy AEP 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 AEP 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 AEP 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 or by a U.S. branch of a foreign 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 AEP 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 AEP 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 AEP 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO Supplier hereunder or its Guarantor under the guaranty Guaranty to Duke Energy AEP Ohio or any of them.

Acceptable Forms of Security. At each SSO 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 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 XXXX 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 XXXX 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 Moody’s 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 the XXXX Supplier has obtained a Letter of Credit fails to meet the foregoing conditions, the SSO XXXX 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 the XXXX 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO XXXX Supplier hereunder or its Guarantor under the guaranty to Duke Energy Ohio or any of them.

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 Xxxx credited to a deposit account of Duke Energy 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 (90) days’ prior written notice from the issuing financial institution. If Duke Energy AEP 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 AEP 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 AEP 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 or by a U.S. branch of a foreign 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 Moody’s 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 AEP 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 AEP 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 AEP 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 any cash collateral against, or making a drawing under any letter of credit in respect of, any liabilities of the SSO Supplier hereunder or its Guarantor under the guaranty Guaranty to Duke Energy AEP Ohio or any of them.