Common use of Other Credit Support Clause in Contracts

Other Credit Support. If, following the occurrence of an Early Termination Event under any Secured Commodity Hedge or Secured Interest Rate Hedge, any Credit Party shall fail to pay any of the Obligations owing under such Secured Commodity Xxxxxx or Secured Interest Rate Hedge as and when required thereunder, then each applicable Eligible Commodity Hedging Counterparty or Interest Rate Hedge Bank agrees that, subject to the occurrence of any Other Credit Support Exception, it shall if a Remedy Event then exists, to the extent permitted under such Secured Commodity Hedge or Secured Interest Rate Hedge, the terms of any relevant Other Credit Support and applicable law, promptly (i) make a demand for payment under any Other Credit Support consisting of letters of credit, cash collateral or a guarantee issued in favor of such Eligible Commodity Hedging Counterparty or Interest Rate Hedge Bank to support the Obligations of the Credit Parties under such Secured Commodity Hedge or Secured Interest Rate Hedge and (ii) promptly apply the proceeds received under any Other Credit Support consisting of letters of credit, cash collateral or guarantee and any cash consisting of Other Credit Support pledged in favor of such Eligible Commodity Hedging Counterparty or Interest Rate Hedge Bank to reduce the outstanding amount of such Obligations.

Other Credit Support. If, following the occurrence of an Early Termination Event under any Secured Commodity Hedge or Secured Interest Rate Hedge, any Credit Party Grantor shall fail to pay any of the Obligations owing under such Secured Commodity Xxxxxx or Secured Interest Rate Hedge as and when required thereunder, then each applicable Eligible Commodity Hedging Counterparty or Interest Rate Hedge Bank agrees that, subject to the occurrence of any Other Credit Support Exception, it shall if a Remedy Event then exists, to the extent permitted under such Secured Commodity Hedge or Secured Interest Rate Hedge, the terms term of any relevant Other Credit Support and applicable law, promptly (i) make a demand for payment under any Other Credit Support consisting of letters of credit, cash collateral or a guarantee issued in favor of such Eligible Commodity Hedging Counterparty or Interest Rate Hedge Bank to support the Obligations of the Credit Parties Grantors under such Secured Commodity Hedge or Secured Interest Rate Hedge and (ii) promptly apply the proceeds received under any Other Credit Support consisting of letters of credit, cash collateral or guarantee and any cash consisting of Other Credit Support pledged in favor of such Eligible Commodity Hedging Counterparty or Interest Rate Hedge Bank to reduce the outstanding amount of such Obligations.