Composition of Security.
(a) The Completion and Performance Security shall be in the form of a Letter of Credit, for the full amount of the Completion and Performance Security.
(b) A Letter of Credit delivered hereunder shall be subject to the following provisions:
(i) The Supplier shall (i) renew or cause the renewal of each outstanding Letter of Credit on a timely basis as provided in the relevant Letter of Credit, (ii) if the financial institution that issued an outstanding Letter of Credit has indicated its intent not to renew such Letter of Credit, provide a substitute Letter of Credit or other equivalent form of security satisfactory to the Buyer at least ten (10) Business Days prior to the expiration of the outstanding Letter of Credit, and (iii) if a financial institution issuing a Letter of Credit fails to honour the Buyer’s properly documented request to draw on an outstanding Letter of Credit (other than a failure to honour as a result of a request to draw that does not conform to the requirements of such Letter of Credit), provide for the benefit of the Buyer (A) a substitute Letter of Credit that is issued by another financial institution, or (B) other security satisfactory to the Buyer in an amount equal to such outstanding Letter of Credit, in either case within five (5) Business Days after the Supplier receives notice of such refusal. Draft
(ii) A Letter of Credit shall provide that the Buyer may draw upon the Letter of Credit in an amount (up to the face amount or part thereof remaining available to be drawn thereunder for which the Letter of Credit has been issued) that is equal to all amounts that are due and owing from the Supplier but that have not been paid to the Buyer within the time allowed for such payments under this Agreement (including any related notice or grace period or both). A Letter of Credit shall provide that a drawing may be made on the Letter of Credit upon submission to the financial institution issuing the Letter of Credit of one or more certificates specifying the amounts due and owing to the Buyer in accordance with the specific requirements of the Letter of Credit. The location where the drawing may be made must be Toronto, Ontario.
(iii) If the Supplier shall fail to renew, substitute, or sufficiently increase the amount of an outstanding Letter of Credit (as the case may be), or establish one or more additional Letters of Credit or other equivalent form of security satisfactory to the Buyer when required hereunder, then without lim...
Composition of Security. (a) The Completion and Performance Security shall be in the form of a Letter of Credit, for the full amount of the Completion and Performance Security.
(b) A Letter of Credit delivered hereunder shall be subject to the following provisions:
(i) The Supplier shall (i) renew or cause the renewal of each outstanding Letter of Credit on a timely basis as provided in the relevant Letter of Credit, (ii) if the financial institution that issued an outstanding Letter of Credit has indicated its intent not to renew such Letter of Credit, provide a substitute Letter of Credit or other equivalent form of security satisfactory to the Buyer at least ten (10) Business Days prior to the expiration of the outstanding Letter of Credit, and (iii) if a financial institution issuing a Letter of Credit fails to honour the Buyer’s properly documented request to draw on an outstanding Letter of Credit (other than a failure to honour as a result of a request to draw that does not conform to the requirements of such Letter of Credit), provide for the benefit of the Buyer (A) a substitute Letter of Credit that is issued by another financial institution, or
Composition of Security. (a) Prior to the Term Commencement Date, where the Commercial Operation Date occurs after the date of this Agreement, the Completion and Performance Security shall be provided in the form of a Letter of Credit, certified cheque, bank draft, or other equivalent form of surety instrument acceptable to the Buyer, acting reasonably, for the full amount, but for certainty, shall not include guarantees.
(b) From and after the Term Commencement Date, the Completion and Performance Security shall be provided as set out in (i) or (ii) below:
(i) a Letter of Credit, certified cheque, bank draft, or other equivalent form of surety instrument acceptable to the Buyer, for the full amount of the Completion and Performance Security; or
(ii) subject to Section 5.2(c), a Guarantee, up to a maximum amount determined pursuant to Section 5.4, but not to exceed 90% of the amount of the Completion and Performance Security, together with a Letter of Credit, certified cheque, bank draft, or other equivalent form of surety instrument acceptable to the Buyer, for the balance of the amount of the Completion and Performance Security. To the extent that the amount of the Guarantee requirement increases or decreases from time to time in accordance with this Article 5, the amount of the Letter of Credit shall correspondingly be required to be decreased or increased, respectively, so that the total amount of the Completion and Performance Security held by the Buyer at all times from and after the Term Commencement Date remains in an aggregate amount equal to $25,000 per MW of DSM Project Equivalent Capacity.
(c) If the aggregate of the Supplier’s Creditworthiness Value, determined pursuant to Section 5.4(b) and the principal amount of the Letter of Credit, certified cheque, bank draft, or other equivalent form of surety instrument acceptable to the Buyer described in Section 5.2(b)(ii) is equal to or greater than the amount of the Completion and Performance Security, then no Guarantee is required.
(d) If a Guarantee forms part of the Completion and Performance Security and:
(i) the Creditworthiness Value of the Supplier determined pursuant to Section 5.4(b) is equal to or greater than the Creditworthiness Value of the Guarantor determined pursuant to Section 5.4(b), provided the Guarantor has a Credit Rating required of a guarantor as set out in Section 5.4, or
(ii) the aggregate of the Supplier’s Creditworthiness Value and the principal amount of the Letter of Credit, certified cheque, ...
Composition of Security. (a) Prior to the Term Commencement Date, where the Commercial Operation Date occurs after the date of this Agreement, the Completion and Performance Security shall be provided in the form of a Letter of Credit, certified cheque, bank draft, or other equivalent form of surety instrument acceptable to the Buyer, acting reasonably, for the full amount, but for greater certainty, such security shall not include Guarantees.
(b) From and after the Term Commencement Date, the Completion and Performance Security shall be provided as set out in (i) or (ii) below:
(i) a Letter of Credit, certified cheque, bank draft, or other equivalent form of surety instrument acceptable to the Buyer, for the full amount of the Completion and Performance Security; or
(ii) subject to Section 5.2(c), a Guarantee, up to a maximum amount determined pursuant to Section 5.4, but not to exceed 90% of the amount of the Completion and Performance Security, together with a Letter of Credit, certified cheque, bank draft, or other equivalent form of surety instrument acceptable to the Buyer, for the balance of the amount of the Completion and Performance Security. To the extent that the amount of the Guarantee requirement increases or decreases from time to time in accordance with this Article 5, the amount of the Letter of Credit shall correspondingly be required to be decreased or increased, respectively, so that the total amount of the Completion and Performance Security held by the Buyer at all times from and after the Term Commencement Date remains in an aggregate amount equal to $25,000 per MW of Maximum Contracted Demand Reduction.
(c) If the aggregate of the Supplier’s Creditworthiness Value, determined pursuant to Section 5.4(b) and the principal amount of the Letter of Credit, certified cheque, bank draft, or other equivalent form of surety instrument acceptable to the Buyer described in Section 5.2(b)(ii) is equal to or greater than the amount of the Completion and Performance Security, then no Guarantee is required.
(d) If a Guarantee forms part of the Completion and Performance Security and:
(i) the Creditworthiness Value of the Supplier determined pursuant to Section 5.4(b) is equal to or greater than the Creditworthiness Value of York Region DR Contract Released November 30, 2005 the Guarantor determined pursuant to Section 5.4(b), provided that the Guarantor has a Credit Rating required of a guarantor as set out in Section 5.4, or
(ii) the aggregate of the Supplier’s Creditwor...
Composition of Security.
(a) The Completion and Performance Security shall be provided as set out in Section 6.2(a)(i) or (ii) below:
(i) a Letter of Credit acceptable to the Buyer, for the full amount of the Completion and Performance Security; or
(ii) subject to Section 6.2(c), a Guarantee, up to a maximum amount determined pursuant to Section 6.4, but not to exceed ninety percent (90%) of the amount of the Completion and Performance Security, together with a Letter of Credit, certified cheque, bank draft, or other equivalent form of security acceptable to the Buyer, for the balance of the amount of the Completion and Performance Security. To the extent that the amount of the Guarantee requirement increases or decreases from time to time in accordance with this Article 6, the amount of the Letter of Credit shall correspondingly be required to be decreased or increased, respectively, so that the total amount of the Completion and Performance Security held by the Buyer at all times from and after the Term Commencement Date remains in an aggregate amount as required pursuant to Section 6.1.
(b) If the aggregate of the Supplier’s Creditworthiness Value determined pursuant to Section 6.4(b) and the principal amount of the Letter of Credit, certified cheque, bank draft, or other equivalent form of security acceptable to the Buyer described in Section 6.2(a)(ii) is equal to or greater than the amount of the Completion and Performance Security, then no Guarantee is required.
(c) If a Guarantee forms part of the Completion and Performance Security and:
(i) the Creditworthiness Value of the Supplier determined pursuant to Section 6.4(b) is equal to or greater than the Creditworthiness Value of the Guarantor determined pursuant to Section 6.4(b), provided the Guarantor has a Credit Rating required of a Guarantor as set out in Section 6.4, or
(ii) the aggregate of the Supplier’s Creditworthiness Value and the principal amount of the Letter of Credit, certified cheque, bank draft, or other equivalent form of security acceptable to the Buyer described in Section 6.2(a)(ii) is equal to or greater than the amount of the Completion and Performance Security, then, provided the Supplier is not then in default under this Agreement, the Buyer shall, upon request by the Supplier, return the Guarantee to the Supplier.
Composition of Security.
(a) Prior to the COD, the obligation of the Supplier to post and maintain Completion and Performance Security as required by Section 6.1(b)(i), 6.1(b)(ii) and 6.1(b)(iii) must be satisfied by the Supplier providing to the Sponsor a Letter of Credit for the full amount.
(b) From and after the date of receipt by the Supplier of the confirmation of the Sponsor described in Section 2.4(b) in respect of COD, the Completion and Performance Security shall be provided as set out in Section 6.2(b)(i) or 6.2(b)(ii) below:
(i) a Letter of Credit for the full amount of the Completion and Performance Security; or
(ii) subject to Sections 6.2(c) and 6.2(d), a Guarantee, up to a maximum amount determined pursuant to Section 6.4, but not to exceed ninety percent (90%) of the amount of the Completion and Performance Security, together with a Letter of Credit for the balance of the amount of the Completion and Performance Security. To the extent that the amount of the Guarantee requirement increases or decreases from time to time in accordance with this Article 6, the amount of the Letter of Credit shall correspondingly be required to be decreased or increased, respectively, so that the total amount of the Completion and Performance Security held by the Sponsor at all times from and after the COD remains in an aggregate amount as required pursuant to Section 6.1(b)(iv).
(c) If the aggregate of the Supplier’s Creditworthiness Value determined pursuant to Section 6.4(b) and the principal amount of the Letter of Credit described in Section 6.2(b)(ii) is equal to or greater than the amount of the Completion and Performance Security, then no Guarantee is required.
(d) If a Guarantee forms part of the Completion and Performance Security and:
(i) the Creditworthiness Value of the Supplier determined pursuant to Section 6.4(b) is equal to or greater than the Creditworthiness Value of the Guarantor determined pursuant to Section 6.4(b), provided the Guarantor has a Credit Rating required of a Guarantor as set out in Section 6.4, or
(ii) the aggregate of the Supplier’s Creditworthiness Value and the principal amount of the Letter of Credit described in Section 6.2(b)(ii) is equal to or greater than the amount of the Completion and Performance Security, then, provided the Supplier is not then in default under this Agreement, the Sponsor shall, upon request by the Supplier, return the Guarantee to the Supplier.
(e) For greater certainty, the Completion and Performance Security m...
Composition of Security. (a) The obligation of the Participant to post and maintain Performance Security as required by Section 8.1 may be satisfied by the Participant by one of the following methods:
i. Performance Security in an amount equal to the full amount of the Net Project Incentive; or
ii. at any time that the Participant has an Acceptable Credit Rating, Performance Security in an amount determined as follows: APS = FPS x RF APS = acceptable Performance Security FPS = the full amount of the Performance Security required pursuant to this Article VIII RF = the reduction factor in the Credit Rating Table that corresponds to the Participant’s Acceptable Credit Rating
Composition of Security. (a) The Completion and Performance Security shall be in the form of a Letter of Credit, for the full amount of the Completion and Performance Security.
(b) A Letter of Credit delivered hereunder shall be subject to the following provisions:
(i) The Supplier shall (i) renew or cause the renewal of each outstanding Letter of Credit on a timely basis as provided in the relevant Letter of Credit, (ii) if the financial institution that issued an outstanding Letter of Credit has indicated its intent not to renew such Letter of Credit, provide a substitute Letter of Credit or other equivalent form of security satisfactory
Composition of Security. (a) Prior to the Contract Facility COD, the obligation of the Supplier to post and maintain Completion and Performance Security as required by Section 6.1(b)(i), (ii), (iii), (iv) and (v) must be satisfied by the Supplier providing to the Buyer, on or before execution of this Agreement, either:
(i) Acceptable Security in an amount equal to the Fifth Period Amount; or
(ii) a Letter of Credit which:
(A) on the date of this Agreement, is in an amount equal to the First Period Amount;
(B) on or before the date that is thirty (30) days after the date of this Agreement, automatically increases to an amount equal to the Second Period Amount;
(C) on or before the date that is sixty (60) days after the date of this Agreement, automatically increases to an amount equal to the Third Period Amount;
(D) on or before the date that is ninety (90) days after the date of this Agreement, automatically increases to an amount equal to the Fourth Period Amount; and
(E) on or before the date that is the earlier of the Financial Closing Milestone Date and three hundred and sixty-five (365) days after the date of this Agreement, automatically increases to an amount equal to the Fifth Period Amount.
(b) From and after Contract Facility COD, the Completion and Performance Security shall be provided as set out in Section 6.2(b)(i) or (ii) below:
(i) a Letter of Credit, certified cheque, bank draft, or other equivalent form of surety instrument acceptable to the Buyer, for the full amount of the Completion and Performance Security; or
(ii) subject to Section 6.2(d), a Guarantee, up to a maximum amount determined pursuant to Section 6.4, but not to exceed ninety percent (90%) of the amount of the Completion and Performance Security, together with a Letter of Credit, certified cheque, bank draft, or other equivalent form of surety instrument acceptable to the Buyer, for the balance of the amount of the Completion and Performance Security. To the extent that the amount of the Guarantee requirement increases or decreases from time to time in accordance with this Article 6, the amount of the Letter of Credit shall correspondingly be required to be decreased or increased, respectively, so that the total amount of the Completion and Performance Security held by the Buyer at all times from and after the Contract Facility COD remains in an aggregate amount as required pursuant to Section 6.1.
(c) If the aggregate of the Supplier’s Creditworthiness Value determined pursuant to Section 6.4(b) a...
Composition of Security. (a) The obligation of the Participant to post and maintain Performance Security as required by Section 8.1 may be satisfied by the Participant by one of the following methods:
(i) Performance Security in an amount equal to the full amount of the Net Participant Incentive; or
(ii) at any time that the Participant has an Acceptable Credit Rating, Performance Security in an amount determined as follows: APS = FPS x RF APS = acceptable Performance Security FPS = the full amount of the Performance Security required pursuant to this Article VIII RF = the reduction factor in the Credit Rating Table that corresponds to the Participant’s Acceptable Credit Rating, and, in the case of the Facility, the lowest of the Participant or owner or occupier of the Facility’s Acceptable Credit Rating
