Common use of Deposits and Other Security Clause in Contracts

Deposits and Other Security. A Party (the “Requesting Party”) may require the other Party (the “Providing Party”) to provide a deposit (or additional deposit if an initial deposit was also required), letter of credit, or other form of credit assurance reasonably acceptable to the Requesting Party (collectively, “Performance Assurance”) during the Term of this Agreement if: (i) the Requesting Party determines in its reasonable discretion that there has been a material adverse change in the Providing Party’s or its guarantor’s (if applicable) credit status or financial condition (which, if applicable, will mean that its credit or bond rating has dropped lower than BBB- by Standard & Poor’s Rating Group or Baa3 by Xxxxx’x Investor Services or ceases to be rated by either of these agencies); or (ii) Customer has been delinquent in paying the electric xxxx by more than seven days more than twice during the past twelve months. Any Performance Assurance, less any outstanding balance owed by Providing Party to the Requesting Party, will be returned to the Providing Party once the Providing Party’s or its guarantor’s (if applicable) credit or financial condition becomes satisfactory or, if applicable, to a credit or bond rating of BBB- or Baa3 or higher, whichever occurs earlier; or, if the Performance Assurance relates to delinquent payments, the Providing Party has paid all outstanding balances and has made all payments within the dates set forth in this Agreement for a period of six consecutive months.

Deposits and Other Security. A Party (the “Requesting Party”) may require the other Party (the “Providing Party”) to provide a deposit (or additional deposit if an initial deposit was also required), letter of credit, or other form of credit assurance reasonably acceptable to the Requesting Party (collectively, “Performance Assurance”) during the Term of this Agreement if: (i) the Requesting Party determines in its reasonable discretion that there has been a material adverse change in the Providing Party’s or its guarantor’s (if applicable) credit status or financial condition (which, if applicable, will mean that its credit or bond rating has dropped lower than BBB- by Standard & Poor’s Rating Group or Baa3 by Xxxxx’x Investor Services or ceases to be rated by either of these agencies); or (ii) Customer has been delinquent in paying the electric xxxx bill by more than seven days more than twice during the past twelve months. Any Performance Assurance, less any outstanding balance owed by Providing Party to the Requesting Party, will be returned to the Providing Party once the Providing Party’s or its guarantor’s (if applicable) credit or financial condition becomes satisfactory or, if applicable, to a credit or bond rating of BBB- or Baa3 or higher, whichever occurs earlier; or, if the Performance Assurance relates to delinquent payments, the Providing Party has paid all outstanding balances and has made all payments within the dates set forth in this Agreement for a period of six consecutive months.

Deposits and Other Security. A Either Party (the “Requesting Providing Party”) may require be required by the other Party (the “Providing Requesting Party”) to provide a deposit (or additional deposit if an initial deposit was also required), letter of credit, or other form of credit assurance reasonably acceptable to the Requesting Party (“collectively, “Performance Assurance”) during the Term of this Agreement if: (i) the Requesting Party determines in its reasonable discretion that there has been a material adverse change in the Providing Party’s or its guarantor’s (if applicable) credit status or financial condition (whichwhich , if applicable, will mean that its credit or bond rating has dropped lower than BBB- by Standard & Poor’s Rating Group or Baa3 by Xxxxx’x Investor Services or ceases to be rated by either of these agencies); or (ii) Customer has been delinquent in paying the electric xxxx by more than seven days more than twice during the past twelve 12 months. Any Performance Assurance, less any outstanding balance owed by Providing from one Party to the Requesting other Party, will be returned to the Providing Party once the Providing Party’s or its guarantor’s (if applicable) credit or financial condition becomes satisfactory or, if applicable, to a credit or bond rating of BBB- or Baa3 or higher, whichever occurs earlier; or, earlier or if the Performance Assurance relates to delinquent payments, the Providing Party has paid all outstanding balances and has made all payments within the dates set forth in this Agreement for a period of six consecutive months.