Payment Security Fund. In addition to provisions contained in Article 2.6 above, the Buying Entity shall provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing, of all the Projects tied up with such fund. The parties agree that proceeds of encashment of PBGs upon default of the SPD under the respective PPA shall be passed on to the Buying Utility subsequent to opening of the above Payment Security Fund. It is hereby clarified that the State Government guarantee shall be invoked only after the SECI has been unable to recover its dues under the PSA by means of the Letter of Credit and the Payment Security Fund.
Payment Security Fund. In addition to provisions contained in Article 6.4 (A) and 6.4. (B) Above, the Buying Utility may also choose to provide Payment Security Fund, not later than the commencement of supply of Power to the Buying Utility under this Agreement, which shall be suitable to support Payment of at least 3 (three) months’ billing of all the Projects tied up with such fund.
Payment Security Fund. In addition to provisions contained in Article 6.4 (a) and 6.4.9 above, the Buying Utility may also choose to provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing of all the Projects tied up with such fund. It is hereby clarified that the State Government guarantee shall be invoked only after the SECI has been unable to recover its dues under the PSA by means of the Letter of Credit and the Payment Security Fund.
Payment Security Fund. The Payment Security Fund shall be suitable to support payment for at least 3 (three) months’ billing of all the Projects tied up with such fund.
Payment Security Fund. In addition to provisions contained in Article 3(A) and (B) above, the Discoms shall provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing, through additional LC
Payment Security Fund. In addition to provisions contained in Article 2.6 above, the Buying Entity may provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing, of all the Projects tied up with such fund. The parties agree that proceeds of encashment of PBGs upon default of the BESSD under the respective BESPA shall be passed on to the Buying Utility subsequent to opening of the above Payment Security Fund. It is hereby clarified that the State Government guarantee shall be invoked only after the SECI has been unable to recover its dues under the BESSA by means of the Letter of Credit and the Payment Security Fund as provided by buying entity.
Payment Security Fund. In addition to provisions of Letter of Credit, PSPCL shall provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months‟ billing, of all the Projects tied up with such fund. It is hereby clarified that Payment Security Fund shall be drawn only after the SPD has been unable to recover its dues under the PPA by means of the Letter of Credit.
Payment Security Fund. 2.6.1 In addition to provisions contained in Article 2.5 above, the Procurer may provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing, of all the Projects tied up with such fund.
Payment Security Fund. CESC shall maintain Payment Security Fund suitable to support payment for at least 3 (three) months billing
10.4.2 Before the start of supply, CESC shall, through a scheduled bank open a Letter of Credit in favor of the HPD, to be made operative from a date prior to the Due Date of its first Monthly Bill under this Agreement. The Letter of Credit shall have a term of twelve (12) Months and shall be renewed annually, for an amount equal to:
i) for the first Contract Year, equal to 100% of the estimated average monthly billing;
ii) for each subsequent Contract Year, equal to 100% of the average of the monthly billing of the previous Contract Year.
10.4.3 Provided that the HPD shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly Bill and/or Supplementary Bill, and shall not make more than one drawl in a Month.
10.4.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article 10.4.2 due to any reason whatsoever, CESC shall restore such shortfall before next drawl.
10.4.5 CESC shall cause the scheduled bank issuing the Letter of Credit to intimate the HPD, in writing regarding establishing of such irrevocable Letter of Credit.
10.4.6 CESC shall ensure that the Letter of Credit shall be renewed not later than its expiry.
10.4.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by CESC.
10.4.8 If CESC fails to pay undisputed Monthly Bill or Supplementary Bill or a part thereof within and including the Due Date, then, subject to Article 10.4.6 & 10.5.2, the HPD may draw upon the Letter of Credit, and accordingly the bank shall pay, an amount equal to such Monthly Bill or Supplementary Bill or part thereof, in accordance with Article 10.4.3 above, by presenting to the scheduled bank issuing the Letter of Credit, the following documents:
i) a copy of the Monthly Bill or Supplementary Bill (only for energy related bills) which has remained unpaid to HPD and;
ii) a certificate from the HPD to the effect that the bill at item (i) above, or specified part thereof, is in accordance with the Agreement and has remained unpaid beyond the Due Date;
Payment Security Fund. 7.7.1 Not later than 30 (thirty) Days prior to the Scheduled COD, GEDCOL shall set up or cause to be set up in favour of the Solar Company, in respect of payment of the monthly Tariff Payments, a payment security fund (Payment Security Fund), with a corpus equivalent to the estimated Tariff Payment for 3 (three) Billing Periods calculated assuming operation of the Facilities at the Normative CUF for the first Contract Year and three times the average monthly Tariff Payment of the immediately preceding Contract Year for subsequent Contract Years, which may be drawn upon by the Solar Company in accordance with this Clause 7.7.
7.7.2 If at any time during the Term of this Agreement, such Payment Security Fund falls short of the amount specified in Clause 7.7.1 above on account of any reasons solely attributable to GEDCOL, GEDCOL shall restore such shortfall within 15 (fifteen) Days.
7.7.3 All costs relating to the opening and maintaining of the Payment Security Fund, i.e., relating to opening of any account, instruments, administrative charges, fees and/or charges payable to a financial institution up to a maximum of 0.5% (zero point five per cent) of the Payment Security Fund for each year shall be borne by GEDCOL. The 0.5% (zero point five per cent) maximum limit on GEDCOL’s liability does not include the interest payable by GEDCOL, if any in respect of drawls from the Payment Security Fund by the Solar Company. GEDCOL shall make such interest payments irrespective of the above-mentioned limit. GEDCOL shall get payments for delay from the Procurer in accordance with this Agreement.
7.7.4 If any monthly Tariff Invoice and/or Other Invoice or part thereof is not paid to the Solar Company on or prior to the Due Date and the Solar Company fails to recover such payments due under the Tariff Invoice and/or Other Invoice from the Letter of Credit, in accordance with Clause 7.6, for any reason not attributable to the Solar Company, then the Solar Company may upon issuing a written notice of 15 (fifteen) Days to GEDCOL, with a copy to the Procurer, draw upon the Payment Security Fund to recover all such amounts in full. The following documents shall be submitted by the Solar Company along with the notice:
(i) a copy of the Tariff Invoice and/or Other Invoice which has remained unpaid to the Solar Company;
(ii) a certificate from the Solar Company to the effect that the xxxx at item (i) above, or part thereof, as the case may be, is prepared and issued in accordance ...
