Common use of Payment Security Mechanism Letter of Credit Clause in Contracts

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): 10.4.1 Subject to opening and maintenance of Letter of Credit by the Buying Utilities (as per terms of SECI- Buying Utilities PSA) in favour of SECI, SECI shall provide 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”), opened and maintained which may be drawn upon by the SPD in accordance with this Article.