Common use of Amount of Credits Clause in Contracts

Amount of Credits. IID shall grant each Participant (including any Participants in default) Transmission Credits equal in dollar value to the sum of the following: (a) The total amount of the Project Contributions made by or on behalf of the Participant; and (b) The construction period financing costs incurred by the Participant, computed from the date of each Project Contribution to the Completion Date. Such financing costs shall be calculated by applying the following interest rates: (1) If the Participant financed its Project Contributions by arrangement with a bank or other lender, its financing costs shall be calculated at the interest rate actually in effect from time to time under the terms of such financing arrangement with the bank or other lender. (2) If the Participant did not so finance its Project Contributions, its financing costs for each calendar quarter or portion thereof shall be calculated at a rate equal to 125% of the Prime Rate (or the maximum rate allowed by law, whichever is less) in effect on the first day of the quarter; and (c) Any fee paid by the Participant or its Affiliate to an investment banking or other firm for providing financial advisory services or arranging financing for such Participant's Project Contributions and any fee paid by the Participant or its Affiliate to obtain a letter of credit from a bank or other financial institution in support of such Participant's obligation to make Project Contributions, provided that the amount of Transmission Credits granted to a Participant pursuant to this paragraph (c) shall not exceed the lesser of $250,000 or 3% of the limit on Project Contributions for that Participant determined pursuant to Section 3.10 as of the date hereof. Any fee paid by a Participant or its Affiliate to an investment banking or other firm for arranging financing for such Participant's Project Contributions as well as other financing required by such Participant or its Affiliate shall, for purposes of this paragraph (c), be allocated to such Participant's Project Contributions on a pro rata basis, in proportion to the relative magnitude of such Project Contributions and other financing. Following the Completion Date, each Participant shall present IID with such documentation as the District may reasonably require to support the amounts referred to in items (b) and (c) above, if applicable. IID shall promptly issue a letter to each such Participant confirming the amount of Transmission Credits available to such Participant.