Common use of Customer Deposit Clause in Contracts

Customer Deposit. Customer shall provide to BREC (as agent for Seller), prior to the Effective Date, a cash deposit or an irrevocable bank standby letter of credit satisfactory to BREC representing two (2) months of estimated billing as security for the payment of Customer’s monthly billing obligations under this Agreement. In the event Customer fails to pay any undisputed monthly billing invoice by the Due Date, after notifying Customer of its intent to do so, BREC may, in addition to and without limiting any other remedies available to it, call on the standby letter of credit provided in this subsection or any other security deposit, payment security, or credit support to satisfy any unpaid invoices owed to Seller. BREC may increase or decrease the required amount of this payment security as necessary based on estimated increases or decreases in Customer’s bills. Customer shall provide the level of credit support required by BREC within 15 business days after each such adjustment. Any cash deposit will earn interest in accordance with law, and interest earned will be paid annually by BREC to Customer. Except with regard to the Customer Deposit in this Section 10.01, nothing in this Agreement shall create any duty or obligation on behalf of BREC to Customer.