Common use of Debt Service Reserve Sub-Account Clause in Contracts

Debt Service Reserve Sub-Account. The balance remaining in the ESCO Energy Savings O&M Account, after the Debt Service Payment Sub-Account is fully credited with, the Debt Service Reserve shall be transferred by the Trustee Bank from the ESCO Energy Savings O&M Account into Debt Service Reserve Sub-Account, to be utilized in the event of shortfall in the ESCO Energy Savings O&M Account to meet ESCO's Debt Service Payment requirements. [The ESCO shall not be required to deposit any amount to the credit of the Debt Service Reserve Sub-Account if the ESCO procures bank guarantee(s) or any letter of credit in a form and manner acceptable to the Lender for an amount equivalent to the Debt Service Reserve. The provision of such bank guarantee(s), or letter of credit shall not in any manner affect the Security Interest created or to be created in favour, or for the benefit, of the Lender. The bank guarantee(s), or other letter of credit referred to above may be invoked by the Lender at any time when there is shortfall in the ESCO Energy Savings O&M Account to meet the Debt Service Payment on any Distribution Date. On receipt of such bank guarantee(s), or other letter of credit, the amount(s) equivalent to the value of such bank guarantee(s) or other letter of credit, as the case may be, out of the amounts standing to the credit of the Debt Service Reserve Sub-Account, as applicable, shall be transferred to the ESCO Energy Savings O&M Account.]34]35

Debt Service Reserve Sub-Account. The balance remaining in the ESCO Host Energy Savings O&M Account, after the Debt Service Payment Sub-Account is fully credited with, the Debt Service Reserve shall be transferred by the Trustee Bank from the ESCO Host Energy Savings O&M Account into Debt Service Reserve Sub-Account, to be utilized in the event of shortfall in the ESCO Host Energy Savings O&M Account to meet ESCOHost's Debt Service Payment requirements. [The ESCO Host shall not be required to deposit any amount to the credit of the Debt Service Reserve Sub-Account if the ESCO Host procures bank guarantee(s) or any letter of credit in a form and manner acceptable to the Lender for an amount equivalent to the Debt Service Reserve. The provision of such bank guarantee(s), or letter of credit shall not in any manner affect the Security Interest created or to be created in favour, or for the benefit, of the Lender. The bank guarantee(s), or other letter of credit referred to above may be invoked by the Lender at any time when there is shortfall in the ESCO Host Energy Savings O&M Account to meet the Debt Service Payment on any Distribution Date. On receipt of such bank guarantee(s), or other letter of credit, the amount(s) equivalent to the value of such bank guarantee(s) or other letter of credit, as the case may be, out of the amounts standing to the credit of the Debt Service Reserve Sub-Account, as applicable, shall be transferred to the ESCO Host Energy Savings O&M Account.]34]35Account.]37]38