Collateral Requirement. 4.1. On or before the thirtieth (30th) day following the Effective Date, Producer shall post and thereafter maintain a collateral requirement (the “Collateral Requirement”) equal to twenty dollars ($20) for each kilowatt of the Gross Power Rating. The Collateral Requirement will be held by SCE and must be in the form of either a cash deposit or the Letter of Credit. If Producer establishes the Collateral Requirement in the form of a cash deposit, SCE shall make monthly Simple Interest Payments to Producer in accordance with the terms of this Agreement. 4.2. The Collateral Requirement shall be posted to SCE and maintained at all times from the thirtieth (30th) day following the Effective Date through the Term End Date and thereafter until such time as Producer has satisfied all monetary obligations which survive any termination of this Agreement, not to exceed one year following the end of the Term. 4.3. If, on the Term Start Date, Producer: 4.3.1. Has not installed any of the equipment or devices necessary for any Generating Facility to satisfy any of the Gross Power Rating, Producer shall forfeit, and SCE shall have the right to retain, the entire Collateral Requirement and terminate this Agreement; or 4.3.2. Has installed only a portion of the equipment or devices necessary for a Generating Facility to satisfy the Gross Power Rating of such Generating Facility prior to any adjustment to the Gross Power Rating pursuant to this Section 4.3.2, Producer shall forfeit, and SCE shall have the right to retain, a portion of the Collateral Requirement equal to the product of twenty dollars ($20) per kW DC and the Gross Power Rating prior to any adjustment to the Gross Power Rating pursuant to this Section 4.3.2 less the product of twenty dollars ($20) per kW DC and the portion of the Gross Power Rating that is available to deliver the Product to SCE at the Delivery Point as of the Term Start Date. In addition, to the extent Producer has installed only a portion of the equipment or devices necessary for a Generating Facility to satisfy the Gross Power Rating of such Generating Facility, the Gross Power Rating set forth in Section 2.3 and the Net Power Rating Set forth in Section 2.4 shall each be adjusted downward to reflect the actual portion of equipment installed at the Generating Facility as of the Term Start Date so long as each of the Gross Power Rating and Net Power Rating are greater than zero (0).
Appears in 6 contracts
Samples: Power Purchase and Sale Agreement, Power Purchase and Sale Agreement, Power Purchase and Sale Agreement
