Common use of Payment Security Mechanism Clause in Contracts

Payment Security Mechanism. 15.8.1. In order to assure payment of the Authority‟s obligation to the Concessionaire under this Agreement, the Authority shall, prior to the COD, establish with ..................11 (“Account Bank”) a no lien bank account with revolving cash- credit limit of a sum equivalent to 1.5 (one and half) months of estimated annual Storage Charges as applicable for the relevant Financial Year and authorise the Account Bank to issue payment to the Concessionaire for unpaid Undisputed Amounts of Invoices raised by the Concessionaire in respect of the Project built under this Agreement. 11 A scheduled commercial Bank which is agreeable to extend such facility to the Authority 15.8.2. Upon the presentation of an unpaid Invoice, the Account Bank shall release to the Concessionaire on the Payment Due Date Undisputed Amounts. The amounts under this Clause15.8.2 shall be released directly into the Designated Bank Account of the Concessionaire with an advice by the Account Bank to both the Parties for such activity. 15.8.3. The Authority undertakes not to create any charge or encumbrance on the Payment Security Deposit and to clear the dues of the Account Bank for the Payment Security Deposit such that the Payment Security Deposit is adequately maintained. 15.8.4. The administrative charge by the Account Bank shall be borne equally between the Parties and shall be duly deducted from amounts released by the Account Bank.

Payment Security Mechanism. 15.8.1. In order to assure payment of the Authority‟s Authority’s obligation to the Concessionaire under this Agreement, the Authority shall, prior to the COD, establish with ..................11 10 (“Account Bank”) a no lien bank account with revolving cash- credit limit of a sum equivalent to 1.5 (one and half) months of estimated annual Storage Charges as applicable for the relevant Financial Year and authorise the Account Bank to issue payment to the Concessionaire for unpaid 10 A scheduled commercial Bank which is agreeable to extend such facility to the Authority Undisputed Amounts of Invoices raised by the Concessionaire in respect of the Project built under this Agreement. 11 A scheduled commercial Bank which is agreeable to extend such facility to the Authority. 15.8.2. Upon the presentation of an unpaid Invoice, the Account Bank shall release to the Concessionaire on the Payment Due Date Undisputed Amounts. The amounts under this Clause15.8.2 shall be released directly into the Designated Bank Account of the Concessionaire with an advice by the Account Bank to both the Parties for such activity. 15.8.3. The Authority undertakes not to create any charge or encumbrance on the Payment Security Deposit and to clear the dues of the Account Bank for the Payment Security Deposit such that the Payment Security Deposit is adequately maintained. 15.8.4. The administrative charge by the Account Bank shall be borne equally between the Parties and shall be duly deducted from amounts released by the Account Bank.

Payment Security Mechanism. 15.8.1. In order to assure payment of the Authority‟s Authority’s obligation to the Concessionaire under this Agreement, the Authority shall, prior to the COD, establish with ..................11 14 (“Account Bank”) a no lien bank account with revolving cash- credit limit of a sum equivalent to 1.5 (one and half) months of estimated annual Storage Charges as applicable for the relevant Financial Year and authorise the Account Bank to issue payment to the Concessionaire for unpaid Undisputed Amounts of Invoices raised by the Concessionaire in respect of the Project built under this Agreement. 11 14 A scheduled commercial Bank which is agreeable to extend such facility to the Authority 15.8.2. Upon the presentation of an unpaid Invoice, the Account Bank shall release to the Concessionaire on the Payment Due Date Undisputed Amounts. The amounts under this Clause15.8.2 Clause 15.8.2 shall be released directly into the Designated Bank Account of the Concessionaire with an advice by the Account Bank to both the Parties for such activity. 15.8.3. The Authority undertakes not to create any charge or encumbrance on the Payment Security Deposit and to clear the dues of the Account Bank for the Payment Security Deposit such that the Payment Security Deposit is adequately maintained. 15.8.4. The administrative charge by the Account Bank shall be borne equally between the Parties and shall be duly deducted from amounts released by the Account Bank.