Common use of Collateral Arrangements Clause in Contracts

Collateral Arrangements. Counterparty shall (at Enron’s request) from time to time and at Enron’s option either: (i) within one Business Day of such request by Enron, provide to Enron a letter of credit in respect of Counterparty's obligations under any Transaction, in such form and for such amount and from such issuer, as is acceptable to Enron in its absolute discretion; or (ii) within such period as is specified by Enron, provide for the benefit of Enron a guaranty from a party, in such form and for such amount as is acceptable to Enron in its absolute discretion. Failure so to provide such letter of credit or guaranty or any default under such letter of credit or guaranty shall constitute a default hereunder giving rise to the immediate right of termination by Enron under this GTC.

Collateral Arrangements. Counterparty shall (at Enron’s request) from time to time and at Enron’s option either: (i) within one Business Day of such request by Enron, provide to Enron a letter of credit in respect of Counterparty's obligations under any Transaction, in such form and for such amount and from such issuer, as is acceptable to Enron in its absolute discretion; or (ii) within such period as is specified by Enron, provide for the benefit of Enron a guaranty guarantee from a party, in such form and for such amount as is acceptable to Enron in its absolute discretion. Failure so to provide such letter of credit or guaranty guarantee or any default under such letter of credit or guaranty guarantee shall constitute a default hereunder giving rise to the immediate right of termination by Enron under this GTC.