Entergy Deposit Clause Samples
The Entergy Deposit clause requires one party, typically the customer, to provide a financial deposit to Entergy, the utility provider, as a form of security for payment obligations under a service agreement. This deposit may be calculated based on estimated usage or a set amount, and is usually held by Entergy for the duration of the service or until certain creditworthiness criteria are met. The core function of this clause is to protect Entergy against the risk of non-payment by ensuring funds are available to cover outstanding charges, thereby reducing financial exposure.
Entergy Deposit. Purchaser shall use its best efforts to assist Seller in obtaining the refund of the $250,000 security deposit (the "Deposit") paid by Seller to Entergy Gulf States, Inc. ("Entergy") on behalf of Monochem in accordance with the terms of the Agreement for Electric Service dated December 1, 2001 and all predecessor agreements thereto (collectively, the "Electric Agreement"). Within three (3) Business Days following the Closing Date, the parties hereto agree that Purchaser and Monochem shall enter into discussions with Entergy and take all necessary actions (including the payment of a new security deposit) to obtain a refund of the Deposit to Seller within ten (10) Business Days following Closing and to pay any security deposit required by Entergy in connection with the Electric Agreement. The term "best efforts" shall not be deemed to require Purchaser to initiate formal legal proceedings against Entergy for recovery of the Deposit.