Common use of Collateral Coverage Clause in Contracts

Collateral Coverage. Each of the El Paso Settling Parties covenants and agrees that the aggregate Value of the Acceptable Collateral shall be equal to or greater than the sum of the following, measured as of the close of each calendar quarter, so long as any Deferred Payments or Additional Payments, as the case may be, remain outstanding: (1) the Discounted Amount of the Deferred Payments, and (2) the Discounted Amount of the Additional Payments. As used herein, the "Value" of the Collateral shall be the following: (i) with respect to any Letter of Credit or cash equivalent Collateral, 100% of the stated amount thereof (as reduced from time to time in accordance with the terms thereof); (ii) with respect to any Oil & Gas Collateral, 130% of the Reported Value thereof, as determined by an Independent Consultant in the most recent report delivered with respect to Oil & Gas Collateral pursuant to this Agreement; and (iii) with respect to any Other Collateral, that percentage of the fair market value thereof determined by the Designated Representative in its reasonable discretion at the time such Other Collateral is pledged to the Settling Claimants pursuant to any Security Documents. The El Paso Settling Parties shall be entitled to designate as of the date of any Compliance Certificate a portion of the Collateral to be held exclusively for the benefit of the Settling Claimants (the "MSA Portion") and a portion of the Collateral to be held exclusively for the benefit of the Additional Payees (the "AP Portion") to be allocated, respectively, between the Settling Claimants and the Additional Payees in proportion to the Deferred Payments of the Settling Claimants and the Additional Payments of the Additional Payees, provided that at the time of such designation, the El Paso Settling Parties are in compliance with the Collateral maintenance requirements set forth in this Paragraph 8.3(a) (as determined as of the date of such Compliance Certificate).

Collateral Coverage. Each of the El Paso Settling Parties covenants and agrees that the aggregate Value of the Acceptable Collateral shall be equal to or greater than the sum of the following, measured as of the close of each calendar quarter, so long as any Deferred Payments or Additional Payments, as the case may be, remain outstanding: (1) the Discounted Amount of the Deferred Payments, and (2) the Discounted Amount of the Additional Payments. As used herein, the "“Value" ” of the Collateral shall be the following: (i) with respect to any Letter of Credit or cash equivalent Collateral, 100% of the stated amount thereof (as reduced from time to time in accordance with the terms thereof); (ii) with respect to any Oil & Gas Collateral, 130% of the Reported Value thereof, as determined by an Independent Consultant in the most recent report delivered with respect to Oil & Gas Collateral pursuant to this Agreement; and (iii) with respect to any Other Collateral, that percentage of the fair market value thereof determined by the Designated Representative in its reasonable discretion at the time such Other Collateral is pledged to the Settling Claimants pursuant to any Security Documents. The El Paso Settling Parties shall be entitled to designate as of the date of any Compliance Certificate a portion of the Collateral to be held exclusively for the benefit of the Settling Claimants (the "“MSA Portion"”) and a portion of the Collateral to be held exclusively for the benefit of the Additional Payees (the "“AP Portion"”) to be allocated, respectively, between the Settling Claimants and the Additional Payees in proportion to the Deferred Payments of the Settling Claimants and the Additional Payments of the Additional Payees, provided that at the time of such designation, the El Paso Settling Parties are in compliance with the Collateral maintenance requirements set forth in this Paragraph 8.3(a) (as determined as of the date of such Compliance Certificate).

Collateral Coverage. Each of Permit the El Paso Settling Parties covenants and agrees that the aggregate Current Appraised Value of the Acceptable Eligible Collateral to be less than the Collateral Coverage Threshold; provided that if (x) upon (1) delivery of an Appraisal Report, a Field Audit or a Collateral Report to the Agent in accordance herewith, (2) the establishment of reserves or other criteria by the Agent pursuant to clause (y) of the definition herein of “Current Appraised Value”, or (3) the occurrence of any Event of Loss or other Collateral Event, and (y) as a result thereof it is determined (solely with respect to determining compliance with this Section 6.1(c)) that the Current Appraised Value of the Eligible Collateral is less than the Collateral Coverage Threshold, neither a Default nor an Event of Default shall be deemed to have occurred under this Section 6.1(c) if, within two Business Days after the date (as applicable) of (i) the delivery of such Appraisal Report, Field Audit or Collateral Report, (ii) the establishment of such reserves or other criteria by the Agent or (iii) the occurrence of such Event of Loss or other Collateral Event, the Borrower (or the Agent, in the case of a deposit deemed to be in furtherance of a Collateral Coverage Shortfall Deposit pursuant to the terms of any of the Aircraft Mortgages) deposits in the Specified Investment Account Cash Equivalent Securities having a value (as determined by the Agent in its reasonable discretion) at least equal to the difference between the Collateral Coverage Threshold and the Current Appraised Value of the Eligible Collateral (any such deposit being referred to as a “Collateral Coverage Shortfall Deposit”); provided further that if the Borrower thereafter provides additional Collateral that is not a Collateral Coverage Shortfall Deposit and such additional Collateral becomes “Eligible Collateral” under clause (b) of the definition of that term and no Event of Default has occurred that is continuing, the Agent shall promptly thereafter transfer to the Borrower in Immediately Available Funds net proceeds of Cash Equivalent Securities then on deposit in the Specified Investment Account in an amount equal to the lesser of the Current Appraised Value of such additional Collateral and the amount of any Collateral Coverage Shortfall Deposits then on deposit in the Specified Investment Account so long as, after giving effect to such transfer, the Current Appraised Value of the Eligible Collateral would be equal to or greater than the sum of the following, measured as of the close of each calendar quarter, so long as any Deferred Payments or Additional Payments, as the case may be, remain outstanding: (1) the Discounted Amount of the Deferred Payments, and (2) the Discounted Amount of the Additional Payments. As used herein, the "Value" of the Collateral shall be the following: (i) with respect to any Letter of Credit or cash equivalent Collateral, 100% of the stated amount thereof (as reduced from time to time in accordance with the terms thereof); (ii) with respect to any Oil & Gas Collateral, 130% of the Reported Value thereof, as determined by an Independent Consultant in the most recent report delivered with respect to Oil & Gas Collateral pursuant to this Agreement; and (iii) with respect to any Other Collateral, that percentage of the fair market value thereof determined by the Designated Representative in its reasonable discretion at the time such Other Collateral is pledged to the Settling Claimants pursuant to any Security Documents. The El Paso Settling Parties shall be entitled to designate as of the date of any Compliance Certificate a portion of the Collateral to be held exclusively for the benefit of the Settling Claimants (the "MSA Portion") and a portion of the Collateral to be held exclusively for the benefit of the Additional Payees (the "AP Portion") to be allocated, respectively, between the Settling Claimants and the Additional Payees in proportion to the Deferred Payments of the Settling Claimants and the Additional Payments of the Additional Payees, provided that at the time of such designation, the El Paso Settling Parties are in compliance with the Collateral maintenance requirements set forth in this Paragraph 8.3(a) (as determined as of the date of such Compliance Certificate)Coverage Threshold.