Common use of Payment Security Mechanism Clause in Contracts

Payment Security Mechanism. (A) Letter of Credit (LC): 2.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of 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 after every 12 month for an amount equal to: i) for the first Contract Year, equal to 1 month of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 1.05 times of the average of the monthly Tariff Payments of the previous Contract Year. 2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly Xxxx, 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 3.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) days. 2.5.5 The Buying Entity 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 Buying Entity 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 Buying Entity. 2.5.8 If the Buying Entity fails to pay a Monthly Xxxx or part thereof within and including the Due Date, then, subject to Article 4.1 and 4.2, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx which has remained unpaid by the Buying Entity; ii) a certificate from SECI 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. (A) A. Letter of Credit (LC): 2.5.1 The 6.4.1 Buying Entity shall provide to SECIBuyer, in respect of payment of its Monthly Bills, a single, an unconditional, revolving and irrevocable letter of credit as a backup arrangement which is to be negotiated only on default conditions (“Letter of Credit”), opened and maintained by the Buying Entity, which may be drawn upon by SECI Buyer in accordance with this Article. The Buyer shall provide to Buying Entity shall provide SECI the draft of the Letter of Credit proposed to be provided to SECI opened by Buying Entity two (2) months before the Scheduled Commissioning Date. 2.5.2 6.4.2 Not later than one (1) Month before the Start of Supply, the Buying Utility Entity shall through a scheduled bank at [insert the name of place] open a Letter of Credit in favour of SECIBuyer, 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 after every 12 6 months, in the month of January and July and revised w.e.f. April and Sept. for an amount equal to: i) for the first Contract Year, equal to 1 month 105% of the estimated average monthly billing; billing (One single LC); ii) for each subsequent Contract Year, equal to 1.05 times 105% of the average of the monthly Tariff Payments of the previous Contract YearYear (One single LC). 2.5.3 SECI 6.4.3 Provided that Buyer shall not draw upon such Letter of Credit prior to 30 days beyond the Due Date of the relevant Monthly Xxxx, and shall not make more than one drawal in a Month provided that there are no outstanding duesMonth, subject to receipt of one single LC. 2.5.4 6.4.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article 3.2 6.4.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) daysdays of receipt of such intimation from Buyer. 2.5.5 The 6.4.5 Buying Entity shall cause the scheduled bank issuing the Letter of Credit to intimate SECIBuyer, in writing regarding establishing of such irrevocable Letter of Credit and any of the changes thereinCredit. 2.5.6 The 6.4.6 Buying Entity shall ensure that the Letter of Credit shall be renewed not later than prior to its expiry. 2.5.7 6.4.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by the Buying Entity. 2.5.8 6.4.8 If the Buying Entity fails to pay a Monthly Xxxx or part thereof within and including the including30 days beyond its Due Date, then, subject to Article 4.1 6.4.3 and 4.26.6.2, SECI Buyer may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx which has remained unpaid by the Buying Entity; ii) a certificate from SECI Buyer to the effect that the xxxx at item (i) above, or specified part thereof, is in accordance with the Agreement and has remained unpaid after 30 days beyond the Due Date;.

Payment Security Mechanism. (A) Letter of Credit (LC): 2.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of 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 after every 12 month for an amount equal to: i) for the first Contract Year, equal to 1 month 1.05 times of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 1.05 times of the average of the monthly Tariff Payments of the previous Contract Year. 2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly Xxxx, and shall not make more than one drawal drawl 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 3.2 2.5.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) days. 2.5.5 The Buying Entity 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 Buying Entity 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 Buying Entity. 2.5.8 If the Buying Entity fails to pay a Monthly Xxxx or part thereof within and including the Due Date, then, subject to Article 4.1 2.5.3 and 4.22.9, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx which has remained unpaid by the Buying Entity; ii) a certificate from SECI 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. (A) Letter of Credit (LC): 2.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of place] Jaipur 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 after every 12 month months for an amount equal to: i) for the first Contract Year, equal to 1 month of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 1.05 times of the average of the monthly Tariff Payments of the previous Contract Year. 2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly Xxxx, and shall not make more than one drawal drawl 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 3.2 2.5.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) days. 2.5.5 The Buying Entity 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 Buying Entity 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 Buying Entity. 2.5.8 If the Buying Entity fails to pay a Monthly Xxxx or part thereof within and including the Due Date, then, subject to Article 4.1 2.5.3 and 4.22.9, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx which has remained unpaid by the Buying Entity; ii) a certificate from SECI 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. (A) Letter of Credit (LC): 2.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of 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 after every 12 month for an amount equal to: i) for the first Contract Year, equal to 1 month the amount as per the provisions of PPA for the estimated average monthly billingcontacted capacity under this Agreement; ii) for each subsequent Contract Year, equal to 1.05 times of the average of the monthly Tariff Payments of the previous Contract Year. 2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly Xxxx, 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 3.2 2.5.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) days. 2.5.5 The Buying Entity 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 Buying Entity 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 Buying Entity. 2.5.8 If the Buying Entity fails to pay a Monthly Xxxx or part thereof within and including the Due Date, then, subject to Article 4.1 2.5.3 and 4.22.9, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx which has remained unpaid by the Buying Entity; ii) a certificate from SECI 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. (A) Letter of Credit (LC): 2.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of 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 after every 12 month for an amount equal to: i) for the first Contract Year, equal to 1 month of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 1.05 times of the average of the monthly Tariff Payments of the previous Contract Year. 2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly Xxxx, 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 3.2 2.5.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) days. 2.5.5 The Buying Entity 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 Buying Entity 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 Buying Entity. 2.5.8 If the Buying Entity fails to pay a Monthly Xxxx or part thereof within and including the Due Date, then, subject to Article 4.1 2.5.3 and 4.22.9, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx which has remained unpaid by the Buying Entity; ii) a certificate from SECI 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. (A) Letter of Credit (LC): 2.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of place] Jaipur 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 after every 12 month for an amount equal to: i) for the first Contract Year, equal to 1 month of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 1.05 times of the average of the monthly Tariff Payments of the previous Contract Year. 2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly Xxxx, 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 3.2 2.5.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) days. 2.5.5 The Buying Entity 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 Buying Entity 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 Buying Entity. 2.5.8 If the Buying Entity fails to pay a Monthly Xxxx or part thereof within and including the Due Date, then, subject to Article 4.1 2.5.3 and 4.22.9, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx which has remained unpaid by the Buying Entity; ii) a certificate from SECI 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. (A) Letter of Credit (LC): 2.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of 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 after every 12 month for an amount equal to: i) for the first Contract Year, equal to 1 month 110% of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 1.05 times 110% of the average of the monthly Tariff Payments of the previous Contract Year. 2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly Xxxx, and shall not make more than one drawal drawl 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 3.2 2.5.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) days. 2.5.5 The Buying Entity 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 Buying Entity 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 Buying Entity. 2.5.8 If the Buying Entity fails to pay a Monthly Xxxx or part thereof within and including the Due Date, then, subject to Article 4.1 2.5.3 and 4.22.9, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx which has remained unpaid by the Buying Entity; ii) a certificate from SECI 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. (A) Letter of Credit (LC): 2.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of 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 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: i) for the first Contract Year, equal to 1 month 110% of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 1.05 times 110% of the average of the monthly Tariff Payments of the previous Contract Year. 2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly XxxxBill, 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 3.2 2.5.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) days. 2.5.5 The Buying Entity 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 Buying Entity 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 Buying Entity. 2.5.8 If the Buying Entity fails to pay a Monthly Xxxx Bill or part thereof within and including the Due Date, then, subject to Article 4.1 2.5.3 and 4.22.9, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx Bill or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx Bill which has remained unpaid by the Buying Entity; ii) a certificate from SECI to the effect that the xxxx 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. (A) Letter of Credit (LC): 2.5.1 6.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 6.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of 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 Bill under this Agreement. The Letter of Credit shall have a term of twelve (12) Months and shall be reviewed after every 12 month renewed annually for an amount equal to: i) for the first Contract Year, equal to 1 month 110% of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 1.05 times 110% of the average of the monthly Tariff Payments billing of the previous Contract Year. 2.5.3 6.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly XxxxBill, and shall not make more than one drawal drawl in a Month provided that there are no outstanding duesMonth. 2.5.4 6.5.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article 3.2 6.5.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) daysdays of receipt of such information from SECI. 2.5.5 6.5.5 The Buying Entity 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 6.5.6 The Buying Entity shall ensure that the Letter of Credit shall be renewed not later than its expiry. 2.5.7 6.5.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by the Buying Entity. 2.5.8 6.5.8 If the Buying Entity fails to pay a Monthly Xxxx Bill or part thereof within and including the Due Date, then, subject to Article 4.1 6.5.3 and 4.26.9, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx Bill or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx Bill which has remained unpaid by the Buying Entity; ii) a certificate from SECI to the effect that the xxxx bill at item (i) above, or specified part thereof, is in accordance with the Agreement and has remained unpaid beyond the Due DateDate as per the provision of this PSA;

Payment Security Mechanism. (A) Letter of Credit (LC): 2.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of 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 Bill under this Agreement. The Letter of Credit shall have a term of twelve (12) Months and shall be reviewed after every 12 month renewed annually for an amount equal to: i) for the first Contract Year, equal to 1 month 110% of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 1.05 times 110% of the average of the monthly Tariff Payments billing of the previous Contract Year. 2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly XxxxBill, and shall not make more than one drawal drawl 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 3.2 2.5.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) days. 2.5.5 The Buying Entity 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 Buying Entity 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 Buying Entity. 2.5.8 If the Buying Entity fails to pay a Monthly Xxxx Bill or part thereof within and including the Due Date, then, subject to Article 4.1 2.5.3 and 4.22.9, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx Bill or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx Bill which has remained unpaid by the Buying Entity; ii) a certificate from SECI to the effect that the xxxx 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. (A) Letter of Credit (LC): 2.5.1 The Buying Entity 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 Buying Entity, which may be drawn upon by SECI in accordance with this Article. The Buying Entity shall provide SECI draft of the Letter of Credit proposed to be provided to SECI two (2) months before the Scheduled Commissioning Date. 2.5.2 Not later than one (1) Month before the Start of Supply, the Buying Utility shall through a scheduled bank at [insert the name of 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 after every 12 month for an amount equal to: i) for the first Contract Year, equal to 1 month 110% of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 1.05 times 110% of the average of the monthly Tariff Payments of the previous Contract Year. 2.5.3 SECI shall not draw upon such Letter of Credit prior to the Due Date of the relevant Monthly Xxxx, 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 3.2 2.5.2 due to any reason whatsoever, the Buying Entity shall restore such shortfall within seven (7) days. 2.5.5 The Buying Entity 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 Buying Entity 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 Buying Entity. 2.5.8 If the Buying Entity fails to pay a Monthly Xxxx or part thereof within and including the Due Date, then, subject to Article 4.1 2.5.3 and 4.22.9, SECI may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from the Buying Entity, an amount equal to such Monthly Xxxx or part thereof, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: i) a copy of the Monthly Xxxx which has remained unpaid by the Buying Entity; ii) a certificate from SECI 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;