Common use of Credit and Security Clause in Contracts

Credit and Security. 5.1.1 No security is required if the total notional dollar value of this Agreement is less than $500,000, or if Buyer determines that REC Supplier or REC Supplier’s guarantor has a credit rating or creditworthiness sufficient to provide the credit required to support this Agreement. If REC Supplier or REC Supplier’s Guarantor is not rated by a nationally recognized credit rating organization, Buyer will perform a creditworthiness assessment to determine if the REC Supplier or REC Supplier’s Guarantor will be required to post credit security. 5.1.2 If the total notional dollar value of this Agreement is in excess of $500,000 and the REC Supplier is relying on REC Supplier’s Guarantor to meet the Minimum Credit Rating requirements, the REC Supplier must provide the Buyer a form of Guaranty in an amount of 5% of the total notional dollar value of the Agreement from the REC Supplier’s Guarantor. The Guaranty must be in the form of Appendix C, or another substantially similar form approved by Buyer. 5.1.3 If Buyer has determined that REC Supplier or REC Supplier’s Guarantor does not meet the Minimum Credit Rating requirements and does not have a creditworthiness sufficient to provide the credit required to support the credit required for this Agreement, then REC Supplier shall post and maintain REC Supplier Security in an amount of 5% of the total notional dollar value of the Agreement. REC Supplier shall post such security in the form of a Letter of Credit in a form acceptable to the Buyer or in cash. The Letter of Credit must be 5.1.4 If Buyer relies upon REC Supplier’s credit rating to allow REC Supplier to avoid posting security, REC Supplier shall notify Buyer of any and all credit downgrades. If REC Supplier’s credit rating subsequently fails to satisfy the Minimum Credit Rating requirements, Buyer shall have the right to require performance assurances or to require posting of credit. REC Supplier shall have the obligation, in such case, to meet Buyer’s performance assurances or alternatively post and maintain REC Supplier Security in an amount of 5% of the total notional dollar value of this Agreement. 5.1.5 Within 3 Business Days after a draw by Buyer on REC Supplier Security, REC Supplier shall cause the REC Supplier Security to be reinstated to the applicable amount, provided, that the obligation to reinstate (a) the REC Supplier Security shall terminate on the date that the security is provided, and (b) Buyer shall terminate any Letter of Credit or return any cash upon the termination of this Agreement. 5.1.6 The Buyer will pay simple interest calculated at the lower of the Interest Index or six percent (6%) per annum on all cash held by Buyer pursuant to this Agreement. If applicable, each Billing Month the REC Supplier will prepare a statement of interest amounts due from the Buyer. The statement will be sent to the Buyer within three (3) Business Days after the end of the Billing Month via overnight mail or other expeditious means. The Buyer will make interest payments on the first Business Day after the fifth (5th) day of each calendar month.

Credit and Security. 5.1.1 No security is required if the total notional dollar value of this Agreement is less than $500,000, 500,000 or if Buyer determines that REC Supplier or REC Supplier’s guarantor has a credit rating or creditworthiness sufficient to provide the credit required to support this Agreement, and if Buyer is not subject to a disclosed special condition including, but not limited to, bankruptcy or an active legal dispute concerning the Buyer’s fulfillment of a REC transaction. If REC Supplier or REC Supplier’s Guarantor is not rated by a nationally recognized credit rating organization, Buyer will perform a creditworthiness assessment to determine if the REC Supplier or REC Supplier’s Guarantor will be required to post credit security. 5.1.2 If the total notional dollar value of this Agreement is in excess of $500,000 and the REC Supplier is relying on REC Supplier’s Guarantor to meet the Minimum Credit Rating requirements, the REC Supplier must provide the Buyer a form of Guaranty in an amount of 5% of the total notional dollar value of the Agreement from the REC Supplier’s Guarantor. The Guaranty must be in the form of Appendix C, or another substantially similar form approved by Buyer. 5.1.3 If Buyer has determined that REC Supplier or REC Supplier’s Guarantor does not meet the Minimum Credit Rating requirements and does not have a creditworthiness sufficient to provide the credit required to support the credit required for this Agreement, then REC Supplier shall post and maintain REC Supplier Security in an amount of 5% of the total notional dollar value of the Agreement. REC Supplier shall post such security in the form of a Letter of Credit in a form acceptable to the Buyer or in cash. The Letter of Credit must bebe in the form of Appendix B, or another substantially similar form approved by Buyer. REC Supplier shall have the right to replace such REC Supplier Security with a different REC Supplier Security in the required amount subject to the REC Supplier providing prior notification to Buyer describing such replacement and confirming that the replacement conforms to the requirements of this Agreement. 5.1.4 If Buyer relies upon REC Supplier’s credit rating to allow REC Supplier to avoid posting security, REC Supplier shall notify Buyer of any and all credit downgrades. If REC Supplier’s credit rating subsequently fails to satisfy the Minimum Credit Rating requirements, Buyer shall have the right to require performance assurances or to require posting of credit. REC Supplier shall have the obligation, in such case, to meet Buyer’s performance assurances or alternatively post and maintain REC Supplier Security in an amount of 5% of the total notional dollar value of this Agreement. 5.1.5 Within 3 Business Days after a draw by Buyer on REC Supplier Security, REC Supplier shall cause the REC Supplier Security to be reinstated to the applicable amount, provided, that the obligation to reinstate (a) the REC Supplier Security shall terminate on the date that the security is provided, and (b) Buyer shall terminate any Letter of Credit or return any cash upon the termination of this Agreement. 5.1.6 The Buyer will pay simple interest calculated at the lower of the Interest Index or six percent (6%) per annum on all cash held by Buyer pursuant to this Agreement. If applicable, each Billing Month the REC Supplier Buyer will prepare maintain a statement record of interest amounts due from the Buyer. The statement will be sent to the Buyer within three (3) Business Days after the end of the Billing Month via overnight mail or other expeditious means. The Buyer cash collateral held and will make interest payments to REC Supplier on a quarterly basis to the first Business Day after the fifth (5th) day of each calendar monthbanking information provided, if applicable.

Credit and Security. 5.1.1 No security is required if the total notional dollar value of this Agreement is less than $500,000, or if Buyer determines that REC Supplier or REC Supplier’s guarantor has a credit rating or creditworthiness sufficient to provide the credit required to support this Agreement. If REC Supplier or REC Supplier’s Guarantor is not rated by a nationally recognized credit rating organization, Buyer will perform a creditworthiness assessment to determine if the REC Supplier or REC Supplier’s Guarantor will be required to post credit security. 5.1.2 If the total notional dollar value of this Agreement is in excess of $500,000 and the REC Supplier is relying on REC Supplier’s Guarantor to meet the Minimum Credit Rating requirements, the REC Supplier must provide the Buyer a form of Guaranty in an amount of 5% of the total notional dollar value of the Agreement from the REC Supplier’s Guarantor. The Guaranty must be in the form of Appendix C, or another substantially similar form approved by Buyer. 5.1.3 If Buyer has determined that REC Supplier or REC Supplier’s Guarantor does not meet the Minimum Credit Rating requirements and does not have a creditworthiness sufficient to provide the credit required to support the credit required for this Agreement, then REC Supplier shall post and maintain REC Supplier Security in an amount of 5% of the total notional dollar value of the Agreement. REC Supplier shall post such security in the form of a Letter of Credit in a form acceptable to the Buyer or in cash. The Letter of Credit must bebe in the form of Appendix B, or another substantially similar form approved by Buyer. REC Supplier shall have the right to replace such REC Supplier Security with a different REC Supplier Security in the required amount subject to the REC Supplier providing prior notification to Buyer describing such replacement and confirming that the replacement conforms to the requirements of this Agreement. 5.1.4 If Buyer relies upon REC Supplier’s credit rating to allow REC Supplier to avoid posting security, REC Supplier shall notify Buyer of any and all credit downgrades. If REC Supplier’s credit rating subsequently fails to satisfy the Minimum Credit Rating requirements, Buyer shall have the right to require performance assurances or to require posting of credit. REC Supplier shall have the obligation, in such case, to meet Buyer’s performance assurances or alternatively post and maintain REC Supplier Security in an amount of 5% of the total notional dollar value of this Agreement. 5.1.5 Within 3 Business Days after a draw by Buyer on REC Supplier Security, REC Supplier shall cause the REC Supplier Security to be reinstated to the applicable amount, provided, that the obligation to reinstate (a) the REC Supplier Security shall terminate on the date that the security is provided, and (b) Buyer shall terminate any Letter of Credit or return any cash upon the termination of this Agreement. 5.1.6 The Buyer will shall pay simple interest calculated at the lower of the Interest Index or six percent (6%) per annum on all cash held by Buyer pursuant to this Agreement. If applicable, each Billing Month the REC Supplier will prepare a statement of interest amounts due from the Buyer. The statement will be sent to the Buyer within three (3) Business Days after the end of the Billing Month via overnight mail or other expeditious means. The Buyer will make interest payments on the first Business Day after the fifth (5th) day of each calendar month.six

Credit and Security. 5.1.1 No security is required if the total notional dollar value of this Agreement is less than $500,000, or if Buyer determines that REC Supplier or REC Supplier’s guarantor has a credit rating or creditworthiness sufficient to provide the credit required to support this Agreement. If REC Supplier or REC Supplier’s Guarantor is not rated by a nationally recognized credit rating organization, Buyer will perform a creditworthiness assessment to determine if the REC Supplier or REC Supplier’s Guarantor will be required to post credit security. 5.1.2 If the total notional dollar value of this Agreement is in excess of $500,000 and the REC Supplier is relying on REC Supplier’s Guarantor to meet the Minimum Credit Rating requirements, the REC Supplier must provide the Buyer a form of Guaranty in an amount of 5% of the total notional dollar value of the Agreement from the REC Supplier’s Guarantor. The Guaranty must be in the form of Appendix C, or another substantially similar form approved by Buyer. 5.1.3 If Buyer has determined that REC Supplier or REC Supplier’s Guarantor does not meet the Minimum Credit Rating requirements and does not have a creditworthiness sufficient to provide the credit required to support the credit required for this Agreement, then REC Supplier shall post and maintain REC Supplier Security in an amount of 5% of the total notional dollar value of the Agreement. REC Supplier shall post such security in the form of a Letter of Credit in a form acceptable to the Buyer or in cash. The Letter of Credit must bebe in the form of Appendix B, or another substantially similar form approved by Buyer. REC Supplier shall have the right to replace such REC Supplier Security with a different REC Supplier Security in the required amount subject to the REC Supplier providing prior notification to Buyer describing such replacement and confirming that the replacement conforms to the requirements of this Agreement. 5.1.4 If Buyer relies upon REC Supplier’s credit rating to allow REC Supplier to avoid posting security, REC Supplier shall notify Buyer of any and all credit downgrades. If REC Supplier’s credit rating subsequently fails to satisfy the Minimum Credit Rating requirements, Buyer shall have the right to require performance assurances or to require posting of credit. REC Supplier shall have the obligation, in such case, to meet Buyer’s performance assurances or alternatively post and maintain REC Supplier Security in an amount of 5% of the total notional dollar value of this Agreement. 5.1.5 Within 3 Business Days after a draw by Buyer on REC Supplier Security, REC Supplier shall cause the REC Supplier Security to be reinstated to the applicable amount, provided, that the obligation to reinstate (a) the REC Supplier Security shall terminate on the date that the security is provided, and (b) Buyer shall terminate any Letter of Credit or return any cash upon the termination of this Agreement. 5.1.6 The Buyer will pay simple interest calculated at the lower of the Interest Index or six percent (6%) per annum on all cash held by Buyer pursuant to this Agreement. If applicable, each Billing Month the REC Supplier will prepare a statement of interest amounts due from the Buyer. The statement will be sent to the Buyer within three (3) Business Days after the end of the Billing Month via overnight mail or other expeditious means. The Buyer will make interest payments on the first Business Day after the fifth (5th) day of each calendar month.