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:

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: