General Provisions Applicable to Credit Support. (a) Credit Support in the form of Cash.
(i) Seller pledges to Buyer, as security for its obligations under this Agreement, and grants to Buyer a first priority continuing security interest in, lien on and right of set-off against all Credit Support in the form of Cash transferred to or received by Buyer under this Agreement. Upon the transfer by Buyer to Seller of Cash held by Buyer as Credit Support, the security interest and lien granted hereunder on that Cash will be released immediately, and to the extent possible, without any further action by either Party.
(ii) Buyer shall maintain all Credit Support in the form of Cash transferred to or received by Buyer with a Qualified Issuer for the purpose of holding Credit Support provided to Buyer by Seller.
(iii) In lieu of any interest paid or deemed to have been paid with respect to Credit Support in the form of Cash (all of which may be retained by Buyer), Credit Support in the form of Cash will accrue interest on a daily basis at the Fed Funds Rate for the actual number of days elapsed based on a year of 365 days. Seller shall include the amount of the accrued interest, if any, payable by Buyer with respect to a month in the invoice provided with respect to such month pursuant to Section 5.1.8 Any accrued interest will constitute Credit Support in the form of Cash and will be subject to the security interest granted under Section 6.2(a)(i).
(iv) For purposes of this Agreement, the value of Credit Support in the form of Cash is equal to the sum of the amount of such Cash plus any interest accrued with respect to such Cash held by Buyer as Credit Support.
(b) Credit Support in the form of a Letter of Credit.
(i) Each Letter of Credit must provide that Buyer may, and Buyer has the right to, in the following situations and upon presentation to the issuer of such Letter of Credit of the 8 Note to PGE: Consider alternatively having all interest accrue until the Operating Period Credit Support is released following the Term. certificates or other documentation required by the terms of the Letter of Credit, draw upon the Letter of Credit in an amount up to the amount due and unpaid by Seller (including any amounts due in connection with the termination of this Agreement) in the case of clause (A), or up to the entire amount available to be drawn thereunder in the case of clause (B):
(A) Either (x) an Event of Default has occurred and is continuing with respect to Seller or (y) this Agreement has terminated or an ...
General Provisions Applicable to Credit Support.
(a) Credit Support in the Form of a Letter of Credit.
(i) With respect to each outstanding Letter of Credit, the Buyer shall either cause the Letter of Credit to be renewed or provide substitute Credit Support, in each case at least 30 days prior to the expiration date of the Letter of Credit. If a Letter of Credit Default occurs with respect to an outstanding Letter of Credit, the Buyer shall within ten (10) Business Days following the Seller’s notice of the Letter of Credit Default transfer to the Seller substitute Credit Support.
(ii) Upon the occurrence of a Letter of Credit Default of the type described in clause (b) of the definition thereof, the issuer of the affected Letter of Credit will no longer be a Qualified Issuer for purposes of the definition of the term “Letter of Credit” unless otherwise agreed by the Seller.
(iii) Proceeds received by the Seller from any draw on a Letter of Credit will, to the extent not applied to the outstanding obligations of the Buyer under this Agreement, constitute Credit Support in the form of Cash.
(iv) For purposes of this Agreement, the value of Credit Support in the form of Letter of Credit is equal to the amount available to be drawn by the Seller under such Letter of Credit unless (x) a Letter of Credit Default has occurred with respect to such Letter of Credit or (y) thirty
