Payment Security Mechanism Letter of Credit (LC). 10.4.1 The Buyer shall provide to the HPD, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly standby letter of credit (“Letter of Credit”), opened and maintained which may be drawn upon by the HPD in accordance with this Article.
10.4.2 Before the start of supply, the Buyer shall, through a scheduled bank, open a Letter of Credit in favour 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 12 (twelve) Months and shall be renewed annually, for an amount equal to:
(i) for the first Contract Year, equal to 110% (one hundred and ten percent) of the estimated average monthly billing;
(ii) for each subsequent Contract Year, equal to 110% (one hundred and ten percent) 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 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, the Buyer shall restore such shortfall before next drawl.
10.4.5 The Buyer 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 The Buyer shall ensure that the Letter of Credit shall be renewed not later than its current expiry date.
10.4.7 All costs relating to the opening and maintenance of the Letter of Credit shall be borne by the Buyer.
10.4.8 If the Buyer 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 Mechanism Letter of Credit (LC). 10.4.1 Subject to opening and maintenance of Letter of Credit by the Buying Entity (as per terms of Buyer-Buying Entity PSA) in favour of the Buyer, the Buyer 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 Subject to opening and maintenance of Letter of Credit by the Buying Entities (as per terms of SECI-Buying Entity PSA) in favour of the SECI, the 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). 10.4.1 The Procurers shall provide to the Seller, in respect of payment of its Monthly Bills, an unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained by the Procurers, which may be drawn upon by the Seller in accordance with this Article. The Procurers shall provide to the Seller draft of the Letter of Credit proposed to be provided to the Seller two (2) months before the Scheduled Commissioning Date.
10.4.2 Not later than one (1) month before the start of supply, the Procurers shall through a scheduled bank at Lucknow open a Letter of Credit in favour of the Seller, 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 (12) months and shall be reviewed every year, in the month of January and revised w.e.
Payment Security Mechanism Letter of Credit (LC). 2.5.1 The Procurer shall provide to SECI, in respect of payment of its Monthly Bills, a single, unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained by the Procurer, which may be drawn upon by SECI in accordance with this Article. The Procurer shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the SCSD.
2.5.2 Not later than one (1) Month before the Start of Supply, the Procurer shall through a scheduled bank at open a Letter of Credit in favour of SECI, to be made operative at least 15 days 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 reviewed after every 12 month for an amount equal to:
a) for the first Contract Year, equal to 3 (three) times of the estimated average monthly or equivalent to 1 quarter of billing as applicable, based on periodicity of Supply;
b) for each subsequent Contract Year, equal to 3 (three) times of the average of the monthly Payments or payment equivalent to 1 quarter of the previous Contract Year as applicable, based on periodicity of Supply.
2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly/periodic Bill, and shall not make more than one drawal in a Month provided that there are no outstanding dues.
2.5.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article 2.5.2 due to any reason whatsoever, the Procurer shall restore such shortfall within seven (7) days.
2.5.5 The Procurer shall cause the scheduled bank issuing the Letter of Credit to intimate SECI, in writing regarding establishing of such irrevocable Letter of Credit and any of the changes therein.
2.5.6 The Procurer shall ensure that the Letter of Credit shall be renewed not later than its expiry.
2.5.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by the Procurer.
2.5.8 If the Procurer fails to pay a Monthly/Periodic Bill or part thereof within and including the Due Date, then, subject to Article 2.5.3 and 2.8, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Procurer, an amount equal to such Monthly/Periodic Bill or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents:
i) a copy of the Monthly/Periodic Bill wh...
Payment Security Mechanism Letter of Credit (LC). 10.4.1 NVVN 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 Not later than one (1) Month before the start of supply, NVVN through a scheduled bank at [Identified Place] 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 Xxxx 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 the estimated average monthly billing;
ii) for each subsequent Contract Year, equal to 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 Xxxx and/or Supplementary Xxxx, 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, NVVN shall restore such shortfall within seven (7) days.
10.4.5 NVVN 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 NVVN shall ensure that the Letter of Credit shall be renewed not later than thirty (30) days prior to its expiry.
10.4.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by NVVN.
10.4.8 If NVVN fails to pay a Monthly Xxxx or Supplementary Xxxx or part thereof within and including the Due Date, then, subject to Article 10.4.6, the SPD may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from NVVN, an amount equal to such Monthly Xxxx or Supplementary Xxxx or part thereof, if applicable, in accordance with Article 10.3.3 above, by presenting to the scheduled bank issuing the Letter of Credit, the following documents:
i) a copy of the Monthly Xxxx or Supplementary Xxxx which has remained unpaid to SPD and;
ii) a certificate from the SPD to the effect that the xxxx 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). 6.4.1 The Discom 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 the Discom, which may be drawn upon by Buyer in accordance with this Article. The Discom 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, the Discom 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 NTPC- Discom(s) (PSA) in favour of NTPC, NTPC 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. EDG shall provide to the SPG, 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 SPG in accordance with this Article.
Payment Security Mechanism Letter of Credit (LC). 6.4.1 The Buying Utility shall provide to SECI, in respect of payment of its Monthly Bills, an unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained by the Buying Utility, which may be drawn upon by SECI in accordance with this Article. The Buying Utility shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date.
6.4.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at ……………. [Identified Place] open a Letter of Credit in favour of SECI, 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 (12) Months and shall be reviewed every year, in the month of January and revised w.e.
