Payment Security Mechanism Letter of Credit. (LC):
10.4.1 SECI shall provide to the SPD, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained which may be drawn upon by the SPD in accordance with this Article.
10.4.2 Before the start of supply, SECI shall, through a scheduled bank, open a Letter of Credit in favour of the SPD, 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 110% of the estimated average monthly billing;
ii) for each subsequent Contract Year, equal to 110% of the average of the monthly billing of the previous Contract Year.
10.4.3 Provided that the SPD 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 drawal 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, SECI shall restore such shortfall before next drawl.
10.4.5 SECI shall cause the scheduled bank issuing the Letter of Credit to intimate the SPD, in writing regarding establishing of such irrevocable Letter of Credit.
10.4.6 SECI shall ensure that the Letter of Credit shall be renewed not later than its current expiry date.
10.4.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by SECI.
10.4.8 If SECI 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 SPD 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 SPD and;
ii) a certificate from the SPD 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 Mechanism Letter of Credit. (LC):
10.4.1 MSPDCL shall provide to the SPD, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained which may be drawn upon by the SPD in accordance with this Article.
Payment Security Mechanism Letter of Credit. (LC):
10.4.1 SECI shall provide to the SPD, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained which may be drawn upon by the SPD in accordance with this Article.
Payment Security Mechanism Letter of Credit. (LC):
6.4.1 Buying Entity shall provide to Buyer, in respect of payment of its Monthly Bills, an unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained by Buying Entity, which may be drawn upon by Buyer in accordance with this Article. Buying Entity shall provide Buyer draft of the Letter of Credit proposed to be provided to Buyer two (2) months before the Scheduled Commissioning Date.
6.4.2 Not later than one (1) Month before the Start of Supply, Buying Entity shall through a scheduled bank at [Identified Place] open a Letter of Credit in favour of Buyer, to be made operative at least 15 days prior to the Due Date of its first Monthly Xxxx under this Agreement. The Letter of Credit shall have a term of twelve
Payment Security Mechanism Letter of Credit. (LC):
10.4.1 Subject to opening and maintenance of Letter of Credit by the Discom(s) (as per terms of NHPC- Discom(s) (PSA) in favour of NHPC, NHPC shall extend to the SPD, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), which may be drawn upon by the SPD in accordance with this Article.
Payment Security Mechanism Letter of Credit. (LC):
10.4.1 SECI shall provide to the WPD, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained which may be drawn upon by the WPD in accordance with this Article.
Payment Security Mechanism Letter of Credit. (LC):
8.8.1 LED shall provide to the SPD, in respect of payment of its Monthly Bills, a monthly unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained which may be drawn upon by the SPD in accordance with this Article.
8.8.2 Before the start of supply, LED shall, through a scheduled bank, open a Letter of Credit in favour of the SPD, 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
Payment Security Mechanism Letter of Credit. 6.6.1 ESCOM shall provide to the SPD, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained which may be drawn upon by the SPD in accordance with this Article.
Payment Security Mechanism Letter of Credit. 10.5.1 The Captive User shall provide to the Developer, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly irrevocable standby letter of credit (“Letter of Credit”) for an amount equivalent to 110% of the average monthly billing as estimated by the Captive User, opened and maintained which may be drawn upon by the Developer upon failure of the Captive User to make the payment of Monthly Bill/ Supplementary Bill within 30 days beyond the Due Date by presenting to the scheduled bank issuing the said standby letter of credit, the following documents:
i) A copy of the Monthly Bill or Supplementary Bill, with duly verified/ certified Energy Account by Energy Auditor which has remained unpaid to the Developer; and
ii) A certificate from the Developer to the effect that the bill at item (i) above, or specified part thereof, is in accordance with the Agreement and has remained unpaid for 30 days beyond the Due Date.
10.5.2 All costs relating to opening, maintenance of the Letter of Credit and any charges incidental to encashment of the Letter of Credit shall be borne by the Captive User.
Payment Security Mechanism Letter of Credit. (LC):
10.4.1 SECI shall provide to the BESSD, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained which may be drawn upon by the BESSD in accordance with this Article.
