Collateral Threshold Amount for Buyer. The unsecured credit available to Buyer (“Buyer’s Collateral Threshold Amount”) shall be determined in accordance with the following subsections (i), (ii), (iii) or (iv), as applicable: (i) If on the relevant Date of Determination all of Buyer’s Credit Ratings are at or above BBB- and Baa3, then Buyer’s Collateral Threshold Amount shall be the amount set forth below under the heading “Buyer’s Collateral Threshold” opposite the lower of Buyer’s Credit Ratings on the relevant Date of Determination or, if Buyer has only one Credit Rating on the relevant Date of Determination, the amount corresponding with that Credit Rating. (ii) If on the relevant Date of Determination the Buyer does not have a Credit Rating or if the conditions of subsection 8.2(b)(i) are not satisfied, then the Buyer’s Collateral Threshold Amount shall be zero. (iii) If after the Date of Determination an Adverse Credit Event occurs with respect to Buyer, then effective as of the third Business Day following the Adverse Credit Event, Buyer’s Collateral Threshold Amount shall be zero; provided that if, subsequent to an Adverse Credit Event affecting Buyer, the conditions of subsection 8.2(b)(i) are subsequently satisfied, the Buyer’s Collateral Threshold Amount shall automatically increase from zero to the applicable Buyer’s Collateral Threshold Amount as determined pursuant to subsection 8.2(b)(i). (iv) If on or after any Date of Determination, an Event of Default with respect to the Buyer has occurred and is continuing, then the Buyer’s Collateral Threshold Amount shall be zero; provided, however, if the Seller, as the Non-Defaulting Party, exercises its rights under Section 5.2 to collect damages in lieu of declaring an Early Termination Date, or waives its right to declare an Early Termination Date and to demand remedies under Section 5.2, as provided in Section 5.4, then three Business Days following the date on which such damages are paid by Buyer to Seller, or such waiver is deemed to occur and upon request of Buyer, the Buyer’s Collateral Threshold shall increase from zero to the Buyer’s Collateral Threshold Amount as determined pursuant to subsection 8.2(b)(i). Buyer’s Collateral Threshold Amount (in Millions of $s) S&P Rating Xxxxx’x Rating AAA Aaa AA- to AA+ Aa3 to Aa1 A+ A1 A A2 A- A3 BBB+ Baa1 BBB Baa2 BBB- Baa3 Below BBB- Below Baa3
Appears in 6 contracts
Samples: Power Purchase Agreement, Power Purchase Agreement, Power Purchase Agreement
