Credit Assurances. On or before the Commercial Operation Date, Seller shall have in place one of the following credit assurances, which assurance Seller shall select at its sole option: Grade or better; or (i) Credit rating of unsecured long-term debt for Seller of Investment (ii) Security for Seller's performance obligations in the form of (A) a mortgage on and security interest in the Facility, (B) collateral assignment of contracts for Fuel supply, support services, transmission rights, permits and related rights, (C) a right to receive notices of default from secured lenders and from parties to the assigned contracts, (D) a right to step in and cure defaults of Seller to Project Lenders, and (E) if rights under clause (D) are exercised, a right to step in and operate the Facility. If there is a senior Project Lender that already has a mortgage on and security interest in the Facility, Department will accept a second mortgage and security interest, including usual and customary standstill rights which at a minimum will prohibit Department from taking any action to foreclose on the collateral until the senior Project Lender has been paid in full. Subordination provisions must be reasonably satisfactory to the senior Project Lender; or (iii) A Guarantee Agreement in favor of and in form acceptable to Department, from a corporate parent that satisfies the credit criteria described in Section 8.01(b)(i).
Appears in 7 contracts
Samples: Power Purchase Agreement, Power Purchase Agreement, Power Purchase Agreement
