Common use of Payment Security Mechanism Clause in Contracts

Payment Security Mechanism. A. 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 as a backup arrangement which is to be negotiated only on default conditions (“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 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 (12) Months and shall be reviewed every 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 105% of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 105% of the average of the monthly Tariff Payments of the previous Contract Year. 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. 6.4.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article 6.4.2 due to any reason whatsoever, Buying Entity shall restore such shortfall within seven (7) days. 6.4.5 Buying Entity shall cause the scheduled bank issuing the Letter of Credit to intimate Buyer, in writing regarding establishing of such irrevocable Letter of Credit. 6.4.6 Buying Entity shall ensure that the Letter of Credit shall be renewed prior to its expiry. 6.4.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by Buying Entity. 6.4.8 If Buying Entity fails to pay a Monthly Xxxx or part thereof within and including 30 days beyond its Due Date, then, subject to Article 6.4.3 and 6.6.2, Buyer may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from 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 Buying Entity; ii) a certificate from 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): 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 as a backup arrangement which is to be negotiated only on default conditions (“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 (12) Months and shall be reviewed every 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 105% 3 months of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 105% 3 months of the average of the monthly Tariff Payments of the previous Contract Year. 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. 6.4.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article 6.4.2 due to any reason whatsoever, Buying Entity shall restore such shortfall within seven (7) days. 6.4.5 Buying Entity shall cause the scheduled bank issuing the Letter of Credit to intimate Buyer, in writing regarding establishing of such irrevocable Letter of Credit. 6.4.6 Buying Entity shall ensure that the Letter of Credit shall be renewed not later than thirty (30) days prior to its expiry. 6.4.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by Buying Entity. 6.4.8 If Buying Entity fails to pay a Monthly Xxxx or part thereof within and including 30 days beyond its the Due Date, then, subject to Article 6.4.3 and 6.6.2, Buyer may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from 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 Buying Entity; ii) a certificate from 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): 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 as a backup arrangement which is to be negotiated only on default conditions (“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 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 (12) Months and shall be reviewed every 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 105% of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 105% of the average of the monthly Tariff Payments of the previous Contract Year. 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. 6.4.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article 6.4.2 due to any reason whatsoever, Buying Entity shall restore such shortfall within seven (7) days. 6.4.5 Buying Entity shall cause the scheduled bank issuing the Letter of Credit to intimate Buyer, in writing regarding establishing of such irrevocable Letter of Credit. 6.4.6 Buying Entity shall ensure that the Letter of Credit shall be renewed prior to its expiry. 6.4.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by Buying Entity. 6.4.8 If Buying Entity fails to pay a Monthly Xxxx or part thereof within and including 30 including30 days beyond its Due Date, then, subject to Article 6.4.3 and 6.6.2, Buyer may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from 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 Buying Entity; ii) a certificate from 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): 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 as a backup arrangement which is to be negotiated only on default conditions (“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 Thiruvananthapuram 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 (12) Months and shall be reviewed every 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 105% of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 105% of the average of the monthly Tariff Payments of the previous Contract Year. 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. 6.4.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article 6.4.2 due to any reason whatsoever, Buying Entity shall restore such shortfall within seven (7) days. 6.4.5 Buying Entity shall cause the scheduled bank issuing the Letter of Credit to intimate Buyer, in writing regarding establishing of such irrevocable Letter of Credit. 6.4.6 Buying Entity shall ensure that the Letter of Credit shall be renewed prior to its expiry. 6.4.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by Buying Entity. 6.4.8 If Buying Entity fails to pay a Monthly Xxxx or part thereof within and including 30 days beyond its Due Date, then, subject to Article 6.4.3 and 6.6.2, Buyer may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from 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 Buying Entity; ii) a certificate from 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): 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 as a backup arrangement which is to be negotiated only on default conditions (“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 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 Bill under this Agreement. The Letter of Credit shall have a term of twelve (12) Months and shall be reviewed every 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 105% of the estimated average monthly billing; ii) for each subsequent Contract Year, equal to 105% of the average of the monthly Tariff Payments of the previous Contract Year. 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 XxxxBill, and shall not make more than one drawal in a Month. 6.4.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article 6.4.2 due to any reason whatsoever, Buying Entity shall restore such shortfall within seven (7) days. 6.4.5 Buying Entity shall cause the scheduled bank issuing the Letter of Credit to intimate Buyer, in writing regarding establishing of such irrevocable Letter of Credit. 6.4.6 Buying Entity shall ensure that the Letter of Credit shall be renewed prior to its expiry. 6.4.7 All costs relating to opening, maintenance of the Letter of Credit shall be borne by Buying Entity. 6.4.8 If Buying Entity fails to pay a Monthly Xxxx Bill or part thereof within and including 30 days beyond its Due Date, then, subject to Article 6.4.3 and 6.6.2, Buyer may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from 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 Buying Entity; ii) a certificate from Buyer 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 after 30 days beyond the Due Date;