Obligation to grant Credit Support Sample Clauses

Obligation to grant Credit Support. (a) If, at any time after the Commencement Date, the Operator is unable to demonstrate to ARTC (on request) that it has a legal ownership structure with a sufficient capital base and assets of value to meet the actual or potential liabilities under this agreement, including timely payment of insurance premiums and deductibles under the required policies of insurance, then ARTC may request the Operator to provide Credit Support on seven days’ notice. If the Operator elects to provide Security, then the Security requested by ARTC must be for an amount not greater than the maximum security, as determined under clause 4.1(b). (b) The maximum security that can be requested by ARTC (including Security given under clause 2.2) will be $2 million for the 2011 calendar year and will be reviewed and escalated at the commencement of each subsequent calendar year in accordance with the following formula. St = St-1 x (CPIt / CPI t-1) Where: St is the maximum security that can be requested by ARTC for the calendar year which has commenced; St 1 is the maximum security which could be requested by ARTC in the previous calendar year; CPIt = the CPI for the September quarter immediately preceding the commencement of that calendar year; and CPIt-1 = the CPI for the September quarter immediately preceding the commencement of the previous calendar year . (c) The amount of the Security requested under clause 4.1(a) (provided it is below the maximum security determined under clause 4.1(b)) is not subject to clause 17. (d) If the Operator is able to demonstrate that it meets the requirement under clause 4.1(a), ARTC will return the Credit Support provided under this clause 4.1. (e) If the Operator has provided Security under this agreement, then, ARTC may draw on the Security on the last Business Day prior to the expiry of the Security unless, at least three Business Days before the expiry date of the Security, replacement Security to the required amount has been provided by or on behalf of the Operator. (f) Upon termination of the agreement, ARTC will release the Security to the Operator provided that at such time the Operator does not owe any further monies to ARTC under this agreement, in which case, the Security will be returned to the Operator less any money (disputed or undisputed) owing by the Operator to ARTC.
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Obligation to grant Credit Support credit rating test (a) If, at any time after the Commencement Date, the Access Holder does not have an Acceptable Credit Rating then ARTC may request the Access Holder to provide Credit Support on seven days’ notice. If the Access Holder elects to provide Security, then that Security must be for an amount of at least three months’ TOP Charges. (b) The amount of the Security will be reviewed every 12 months from the Effective Date. The results of the review are not subject to clause 14. (c) The Access Holder must promptly notify ARTC of any downgrade in the Access Holder’s credit rating (or that of the person providing a Parent Guarantee) below the Acceptable Credit Rating. (d) If the Access Holder’s credit rating is upgraded to an Acceptable Credit Rating, ARTC will return the Credit Support provided under clause 2 or this clause 7.1. (e) If the Access Holder has provided Security, then, ARTC may draw on the Security on the last Business Day prior to the expiry of the Security unless, at least three Business Days before the expiry date of the Security, replacement Security to the required amount has been provided by or on behalf of the Access Holder. (f) Upon termination of the agreement, ARTC will release the Security to the Access Holder provided that at such time the Access Holder does not owe any further monies to ARTC under this agreement, in which case, the Security will be returned to the Access Holder less any money (disputed or undisputed) owing by the Access Holder to ARTC.
Sample 1
Obligation to grant Credit Support. (a) If, at any time after the Commencement Date, the Operator is unable to demonstrate to ARTC (on request) that it has a legal ownership structure with a sufficient capital base and assets of value to meet the actual or potential liabilities under this agreement, including timely payment of insurance premiums and deductibles under the required policies of insurance, then ARTC may request the Operator to provide Credit Support on seven days’ notice. If the Operator elects to provide Security, then thatthe Security requested by ARTC must be for an amount of at least [insert]. not greater than the maximum security, as determined under clause 4.1(b). (b) The maximum security that can be requested by ARTC (including Security given under clause 2.2) will be $2 million for the 2010 calendar year and will be reviewed and escalated at the commencement of each subsequent calendar year in accordance with the following formula. St = St-1 x (CPIt / CPI t-1) St is the maximum security that can be requested by ARTC for the calendar year which has commenced; St 1 is the maximum security which could be requested by ARTC in the previous calendar year; CPIt = the CPI for the September quarter immediately preceding the commencement of that calendar year; and CPIt-1 = the CPI for the September quarter immediately preceding the commencement of the previous calendar year . Drafting note: for contracts commencing in 2010, the maximum annual security that can be required by ARTC is $2 million. This maximum annual security that can be required each calendar year by ARTC (starting in 2011) will be increased in line with CPI increases.
Sample 1
Obligation to grant Credit Support. (a) If, at any time after the Commencement Date, the Operator is unable to demonstrate to ARTC (on request) that it has a legal ownership structure with a sufficient capital base and assets of value to meet the actual or potential liabilities under this agreement, including timely payment of insurance premiums and deductibles under the required policies of insurance, then ARTC may request the Operator to provide Credit Support on seven days’ notice. If the Operator elects to provide Security, then that Security must be for an amount of at least [insert]. (b) The amount of the Security will be reviewed every 12 months from the Effective Date. The results of the review are not subject to clause 17. (c) If the Operator’s is able to demonstrate that it meets the requirement under clause 4.1(a), ARTC will return the Credit Support provided under this clause 4.1. (d) If the Operator has provided Security, then, ARTC may draw on the Security on the last Business Day prior to the expiry of the Security unless, at least three Business Days before the expiry date of the Security, replacement Security to the required amount has been provided by or on behalf of the Operator. (e) Upon termination of the agreement, ARTC will release the Security to the Operator provided that at such time the Operator does not owe any further monies to ARTC under this agreement, in which case, the Security will be returned to the Operator less any money (disputed or undisputed) owing by the Operator to ARTC.
Sample 1

Related to Obligation to grant Credit Support

  • OBLIGATION TO SUPPORT ‌ The parties agree that subsequent to the execution of this Memorandum of Understanding and during the period of time said Memorandum is pending before the Board of Supervisors for action, neither SEIU Local 721, nor Management, nor their authorized representatives, will appear before the Board of Supervisors or meet with members of the Board of Supervisors individually to advocate any amendment, addition or deletion to the terms and conditions of this Memorandum of Understanding. It is further understood that this Article shall not preclude the parties from appearing before the Board of Supervisors nor meeting with individual members of the Board of Supervisors to advocate or urge the adoption and approval of this Memorandum of Understanding in its entirety.

  • No Obligation to Exercise Option The grant and acceptance of this option imposes no obligation on the Optionee to exercise it.

  • Credit Support A Credit Support Document between the Parties may apply to obligations governed by the Agreement. If the Parties have executed a Credit Support Document, such Credit Support Document shall be subject to the terms of the Agreement and is hereby incorporated by reference in the Agreement. In the event of any conflict between a Credit Support Document and the Agreement, the Agreement shall prevail, except for any provision in such Credit Support Document in respect of governing law.

  • Credit Support Obligations (i) Delivery Amount, Return Amount and Credit Support Amount.

  • No Obligation to Pursue Others Bank has no obligation to attempt to satisfy the Obligations by collecting them from any other person liable for them and Bank may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all without affecting Bank’s rights against Borrower. Borrower waives any right it may have to require Bank to pursue any other Person for any of the Obligations.

  • Certain Credit Support Events If (i) the L/C Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing, (ii) as of the Letter of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, (iii) the Borrower shall be required to provide Cash Collateral pursuant to Section 2.05 or 8.02(c), or (iv) there shall exist a Defaulting Lender, the Borrower shall immediately (in the case of clause (iii) above) or within one (1) Business Day (in all other cases) following any request by the Administrative Agent or the L/C Issuer, provide Cash Collateral in an amount not less than the applicable Minimum Collateral Amount (determined in the case of Cash Collateral provided pursuant to clause (iv) above, after giving effect to Section 2.15(a)(iv) and any Cash Collateral provided by the Defaulting Lender).

  • Performance Obligation 11.1 Interconnection Customer's Interconnection Facilities 11.2 Participating TO's Interconnection Facilities 11.3 Network Upgrades and Distribution Upgrades

  • Director Notification Obligation If the Participant is a director of the Corporation’s Malaysian Affiliate, the Participant is subject to certain notification requirements under the Malaysian Companies Act. Among these requirements is an obligation to notify the Malaysian Affiliate in writing when the Participant receives or disposes of an interest (e.g., an Award or shares) in the Corporation or any related company. Such notifications must be made within 14 days of receiving or disposing of any interest in the Corporation or any related company.

  • Performance by Secured Party If Debtor fails to perform any agreement or obligation provided herein, Secured Party may itself perform, or cause performance of, such agreement or obligation, and the expenses of Secured Party incurred in connection therewith shall be a part of the Indebtedness, secured by the Collateral and payable by Debtor on demand.

  • Excuse for Nonperformance or Delayed Performance Except with respect to defaults of subcontractors, Contractor/Vendor shall not be in default by reason of any failure in performance of this contract in accordance with its terms (including any failure by Contractor/Vendor to make progress in the prosecution of the work hereunder which endangers such performance) if Contractor/Vendor has notified the Commission or designee within 15 days after the cause of the delay and the failure arises out of causes such as: acts of God; acts of the public enemy; acts of the State and any other governmental entity in its sovereign or contractual capacity; fires; floods; epidemics; quarantine restrictions; strikes or other labor disputes; freight embargoes; or unusually severe weather. If the failure to perform is caused by the failure of a subcontractor to perform or to make progress, and if such failure arises out of causes similar to those set forth above, Contractor/Vendor shall not be deemed to be in default, unless the services to be furnished by the subcontractor were reasonably obtainable from other sources in sufficient time to permit Contractor to meet the contract requirements. Upon request of Contractor, the Commission or designee shall ascertain the facts and extent of such failure, and, if such officer determines that any failure to perform was occasioned by any one or more of the excusable causes, and that, but for the excusable cause, Contractor’s progress and performance would have met the terms of the contract, the delivery schedule shall be revised accordingly, subject to the rights of the State under the clause entitled (in fixed-price contracts, “Termination for Convenience,” in cost-reimbursement contracts, “Termination”). (As used in this Paragraph of this clause, the term “subcontractor” means subcontractor at any tier).

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