Common use of Payment Security Mechanism Clause in Contracts

Payment Security Mechanism. 8.8.1 Procurer shall provide to the Power Producer, 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 Power Producer in accordance with this Article. 8.8.2 Not later than one (1) Month before the SCOD, including the extension granted, if any, Procurer through a scheduled bank at [Identified Place] open a Letter of Credit in favour of the Power Producer, to be made operative from a date prior to the Due Date of its first Monthly Bill under this PPA. 8.8.3 The Letter of Credit shall have a term of twelve (12) Months and shall be renewed annually, for an amount: For Government entities a) for the first Operational Year, equal to one hundred twenty percent (120%) of the estimated average monthly billing; b) for each subsequent Operational Year, equal to one hundred and twenty percent (120%) of the average of the monthly billing of the previous Operational Year. For Private entities a) for the first Operational Year, equal to four hundred percent (400%) of the estimated average monthly billing; b) for each subsequent Operational Year, equal to four hundred percent (400%) of the average of the monthly billing of the previous Operational Year. 8.8.4 Provided that the Power Producer shall not draw upon such Letter of Credit prior to the end of 30thDay from the Due Date of the relevant Monthly Bill and/or Supplementary Bill, and shall not make more than one drawal in a Month. 8.8.5 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article8.8.2 due to any reason whatsoever, Procurer shall restore such shortfall within seven (7) Business Days. 8.8.6 If the Power Producer draws from the Letter of Credit, the amount corresponding to the drawn amount shall be deposited in the designated bank account. 8.8.7 Procurer shall cause the scheduled bank issuing the Letter of Credit to intimate the Power Producer, in writing regarding establishing of such irrevocable Letter of Credit. 8.8.8 Procurer shall ensure that the Letter of Credit shall be renewed not later than thirty (30) Business Days prior to its expiry. 8.8.9 All costs relating to opening, maintenance of the Letter of Credit shall be borne by Xxxxxxxx. 8.8.10 Where necessary, the Letter of Credit may also be substituted by an 8.8.10.1 unconditional and irrevocable bank guarantee; 8.8.10.2 Fixed Deposit Receipt with APDCL; 8.8.10.3 Cash receipt with APDCL; 8.8.10.4 Guarantee/Assurance of the concerned Department. 8.8.11 If Xxxxxxxx fails to pay a Monthly Bill or Supplementary Bill or part thereof within and including the 30th day from the Due Date, then, subject to Article8.8.7, the Power Producer may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from Procurer, an amount equal to the shortfall of the payment made towards such Monthly Bill or Supplementary Bill or part thereof, if applicable, in accordance with Article8.5 above, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: a) a copy of the Monthly Bill or Supplementary Bill which has remained unpaid to Power Producer and; b) a certificate from the Power Producer to the effect that the bill at item a) above, or specified part thereof, is in accordance with the PPA and has remained unpaid beyond the Due Date;

Payment Security Mechanism. 8.8.1 7.8.1 Procurer shall provide to the Power Producer, 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 Power Producer in accordance with this Article. 8.8.2 7.8.2 Not later than one (1) Month before the SCOD, including the extension granted, if any, Procurer through a scheduled bank at [Identified Place] open a Letter of Credit in favour of the Power Producer, to be made operative from a date prior to the Due Date of its first Monthly Bill Xxxx under this PPA. 8.8.3 7.8.3 The Letter of Credit shall have a term of twelve (12) Months and shall be renewed annually, for an amount: For Government entities: a) for the first Operational Year, equal to one hundred twenty percent (120%) of the estimated average monthly billing; b) for each subsequent Operational Year, equal to one hundred and twenty percent (120%) of the average of the monthly billing of the previous Operational Year. For Private entities. a) for the first Operational Year, equal to four hundred percent (400%) of the estimated average monthly billing; b) for each subsequent Operational Year, equal to four hundred percent (400%) of the average of the monthly billing of the previous Operational Year. 8.8.4 7.8.4 Provided that the Power Producer shall not draw upon such Letter of Credit prior to the end of 30thDay 30th Day from the Due Date of the relevant Monthly Bill Xxxx and/or Supplementary BillXxxx, and shall not make more than one drawal in a Month. 8.8.5 7.8.5 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article8.8.2 Article 7.8.2 due to any reason whatsoever, Procurer shall restore such shortfall within seven (7) Business Days. 8.8.6 7.8.6 If the Power Producer draws from the Letter of Credit, the amount corresponding to the drawn amount shall be deposited in the designated bank account. 8.8.7 7.8.7 Procurer shall cause the scheduled bank issuing the Letter of Credit to intimate the Power Producer, in writing regarding establishing of such irrevocable Letter of Credit. 8.8.8 7.8.8 Procurer shall ensure that the Letter of Credit shall be renewed not later than thirty (30) Business Days prior to its expiry. 8.8.9 7.8.9 All costs relating to opening, maintenance of the Letter of Credit shall be borne by XxxxxxxxProcurer. 8.8.10 7.8.10 Where necessary, the Letter of Credit may also be substituted by an 8.8.10.1 7.8.10.1 unconditional and irrevocable bank guarantee; 8.8.10.2 7.8.10.2 Fixed Deposit Receipt with APDCLNodal Agency; 8.8.10.3 7.8.10.3 Cash receipt with APDCLNodal Agency; 8.8.10.4 7.8.10.4 Guarantee/Assurance of the concerned Department. 8.8.11 7.8.11 If Xxxxxxxx Procurer fails to pay a Monthly Bill Xxxx or Supplementary Bill Xxxx or part thereof within and including the 30th day from the Due Date, then, subject to Article8.8.7Article 7.8.7, the Power Producer may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from Procurer, an amount equal to the shortfall of the payment made towards such Monthly Bill Xxxx or Supplementary Bill Xxxx or part thereof, if applicable, in accordance with Article8.5 Article 7.5 above, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: a) a copy of the Monthly Bill Xxxx or Supplementary Bill Xxxx which has remained unpaid to Power Producer and; b) a certificate from the Power Producer to the effect that the bill xxxx at item a) above, or specified part thereof, is in accordance with the PPA and has remained unpaid beyond the Due Date;

Payment Security Mechanism. 8.8.1 1.40.1 Procurer shall provide to the Power ProducerSPD, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly an yearly unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), Credi opened and maintained which may be drawn upon by the Power Producer SPD in accordance with this Article. 8.8.2 Not later than one (1) Month before 1.40.2 On the SCODExecution Date, including the extension granted, if any, Procurer Xxxxxxxx through a scheduled bank at [Identified Place] open a Letter of Credit in favour of the Power Producer, to be made operative from a date prior to the Due Date of its first Monthly Bill under this PPA.at 8.8.3 i. The Letter of Credit shall have a term of twelve (12) Months and shall be renewed annually, for an amount: For Government entities a) for the first Operational Year, equal to one hundred twenty percent (120%) of the estimated average monthly billing; b) for each subsequent Operational Year, equal to one hundred and twenty percent (120%) of the average of the monthly billing of the previous Operational Year. For Private entities a) amount for the first Operational Year, equal to four hundred percent (400%) of the estimated average monthly billing; b) ii. for each subsequent Operational Year, in case the average monthly billing of the previous Operational Year is more than the average monthly billing amount considered for the current Operational Year, then it shall be equal to four hundred percent (400%) of the average of the monthly billing of the previous Operational YearYear else the same average monthly billing amount shall be considered. 8.8.4 1.40.3 Provided that the Power Producer SPD shall not draw upon such Letter of Credit prior to the end of 30thDay 30th Day from the Due Date of the relevant Monthly Bill and/or Supplementary Bill, Bill and shall not make more than one drawal in a Month. 8.8.5 1.40.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article8.8.2 Article 1.41.2 due to any reason whatsoever, Procurer shall restore such shortfall within seven (7) Business Days. 8.8.6 1.40.5 If the Power Producer SPD draws from the Letter of Credit, the amount corresponding to the drawn amount shall be deposited in the designated bank account. 8.8.7 1.40.6 Procurer shall cause the scheduled bank issuing the Letter of Credit to intimate the Power ProducerSPD, in writing regarding establishing of such irrevocable Letter of Credit. 8.8.8 1.40.7 Procurer shall ensure that the Letter of Credit shall be renewed not later than thirty (30) Business Days prior to its expiry. 8.8.9 1.40.8 All costs relating to opening, maintenance of the Letter of Credit shall be borne by Xxxxxxxx. 8.8.10 Where necessary, the Letter of Credit may also be substituted by an 8.8.10.1 unconditional and irrevocable bank guarantee; 8.8.10.2 Fixed Deposit Receipt with APDCL; 8.8.10.3 Cash receipt with APDCL; 8.8.10.4 Guarantee/Assurance of the concerned Department. 8.8.11 1.40.9 If Xxxxxxxx fails to pay a Monthly Bill or Supplementary Bill or part thereof within and including the 30th day thirty (30) Days from the Due Date, then, subject to Article8.8.7Article 1.41.6, the Power Producer SPD may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from Procurer, an amount equal to the shortfall of the payment made towards such Monthly Bill or Supplementary Bill or part thereof, if applicable, in accordance with Article8.5 Article 1.38 above, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: a) i. a copy of the Monthly Bill or Supplementary Bill which has remained unpaid to Power Producer SPD and; b) ii. a certificate from the Power Producer SPD to the effect that the bill at item a) i above, or specified part thereof, is in accordance with the PPA and has remained unpaid beyond the Due Date;

Payment Security Mechanism. 8.8.1 Procurer Letter of Credit (LC): 10.4.1 SECI shall provide to the Power ProducerSPD, 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 Power Producer SPD in accordance with this Article. 8.8.2 10.4.2 Not later than one (1) Month before the SCODstart of supply, including the extension granted, if any, Procurer SECI through a scheduled bank at ……………. [Identified Place] open a Letter of Credit in favour of the Power ProducerSPD, to be made operative from a date prior to the Due Date of its first Monthly Bill under this PPA. 8.8.3 Agreement. The Letter of Credit shall have a term of twelve (12) Months and shall be renewed annually, for an amount: For Government entitiesamount equal to: ai) for the first Operational Contract Year, equal to one hundred twenty percent (120%) of the estimated average monthly billing; bii) for each subsequent Operational Contract Year, equal to one hundred and twenty percent (120%) of the average of the monthly billing of the previous Operational Year. For Private entities a) for the first Operational Year, equal to four hundred percent (400%) of the estimated average monthly billing; b) for each subsequent Operational Year, equal to four hundred percent (400%) of the average of the monthly billing of the previous Operational Contract Year. 8.8.4 10.4.3 Provided that the Power Producer SPD shall not draw upon such Letter of Credit prior to the end of 30thDay from the Due Date of the relevant Monthly Bill and/or Supplementary Bill, and shall not make more than one drawal in a Month. 8.8.5 10.4.4 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article8.8.2 Article 10.4.2 due to any reason whatsoever, Procurer SECI shall restore such shortfall within seven (7) Business Daysdays. 8.8.6 If the Power Producer draws from the Letter of Credit, the amount corresponding to the drawn amount shall be deposited in the designated bank account. 8.8.7 Procurer 10.4.5 SECI shall cause the scheduled bank issuing the Letter of Credit to intimate the Power ProducerSPD, in writing regarding establishing of such irrevocable Letter of Credit. 8.8.8 Procurer 10.4.6 SECI shall ensure that the Letter of Credit shall be renewed not later than thirty ten (3010) Business Days days prior to its expiry. 8.8.9 10.4.7 All costs relating to opening, opening and maintenance of the Letter of Credit shall be borne by XxxxxxxxSECI. All other costs shall be borne by the SPD. 8.8.10 Where necessary, the Letter of Credit may also be substituted by an 8.8.10.1 unconditional and irrevocable bank guarantee; 8.8.10.2 Fixed Deposit Receipt with APDCL; 8.8.10.3 Cash receipt with APDCL; 8.8.10.4 Guarantee/Assurance of the concerned Department. 8.8.11 10.4.8 If Xxxxxxxx SECI fails to pay a Monthly Bill or Supplementary Bill or part thereof within and including the 30th day from the Due Date, then, subject to Article8.8.7Article 10.4.6, the Power Producer SPD may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from ProcurerSECI, an amount equal to the shortfall of the payment made towards such Monthly Bill or Supplementary Bill or part thereof, if applicable, in accordance with Article8.5 Article 10.3.3 above, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: ai) a copy of the Monthly Bill or Supplementary Bill which has remained unpaid to Power Producer SPD and; bii) a certificate from the Power Producer SPD to the effect that the bill at item a(i) above, or specified part thereof, is in accordance with the PPA Agreement and has remained unpaid beyond the Due Date;

Payment Security Mechanism. 8.8.1 Procurer 10.4.1 UPPCL shall provide to the Power ProducerSPD, in respect of payment of its Monthly Bills and/or Supplementary Bills, a monthly an unconditional, weekly revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained which may be drawn upon by the Power Producer SPD in accordance with this Article. 8.8.2 Not later than one . The Letter of Credit will be provided by the UPPCL as per Electricity (1Late Payment Surcharge & Related matters) Month before the SCODRules 2022, including the extension grantedamendments and clarification, if anyany thereof, Procurer issued firm time to time. Before the start of supply, UPPCL shall, through a scheduled bank at [Identified Place] bank, open a Letter of Credit in favour of the Power ProducerSPD, to be made operative from a date prior to the Due Date of its first Monthly Bill under this PPA. 8.8.3 Agreement. The Letter of Credit shall have a term of twelve (12) Months and shall be renewed annually, for an amount: For Government entitiesamount equal to: a(i) for the first Operational Contract Year, equal to one hundred twenty percent (120%) 100% of the estimated average monthly billing; b(ii) for each subsequent Operational Contract Year, equal to one hundred and twenty percent (120%) 100% of the average of the monthly billing of the previous Operational Year. For Private entities a) for the first Operational Year, equal to four hundred percent (400%) of the estimated average monthly billing; b) for each subsequent Operational Year, equal to four hundred percent (400%) of the average of the monthly billing of the previous Operational Contract Year. 8.8.4 10.4.2 Provided that the Power Producer SPD shall not draw upon such Letter of Credit prior to the end of 30thDay from the Due Date of the relevant Monthly Bill and/or Supplementary Bill, and shall not make more than one (1) drawal in a Month. 8.8.5 10.4.3 Provided further that if at any time, such Letter of Credit amount falls short of the amount specified in Article8.8.2 Article 10.4.1 due to any reason whatsoever, Procurer UPPCL shall restore such shortfall within seven (7) Business Daysbefore next drawl. 8.8.6 If the Power Producer draws from the Letter of Credit, the amount corresponding to the drawn amount shall be deposited in the designated bank account. 8.8.7 Procurer 10.4.4 UPPCL shall cause the scheduled bank issuing the Letter of Credit to intimate the Power ProducerSPD, in writing regarding establishing of such irrevocable Letter of Credit. 8.8.8 Procurer 10.4.5 UPPCL shall ensure that the Letter of Credit shall be renewed not later than thirty (30) Business Days prior to its expiry. 8.8.9 10.4.6 All costs relating to opening, maintenance of the Letter of Credit shall be borne by XxxxxxxxUPPCL. 8.8.10 Where necessary, the Letter of Credit may also be substituted by an 8.8.10.1 unconditional and irrevocable bank guarantee; 8.8.10.2 Fixed Deposit Receipt with APDCL; 8.8.10.3 Cash receipt with APDCL; 8.8.10.4 Guarantee/Assurance of the concerned Department. 8.8.11 10.4.7 If Xxxxxxxx UPPCL fails to pay a undisputed Monthly Bill or Supplementary Bill or a part thereof within and including the 30th day from the Due Date, then, subject to Article8.8.7Article 10.4.2 & 10.5.2, the Power Producer SPD may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from Procurerpay, an amount equal to the shortfall of the payment made towards such Monthly Bill or Supplementary Bill or part thereof, if applicable, in accordance with Article8.5 above, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: a(i) a copy of the Monthly Bill or Supplementary Bill (only for energy related bills) which has remained unpaid to Power Producer SPD and; b(ii) a certificate from the Power Producer SPD to the effect that the bill at item a(i) above, or specified part thereof, is in accordance with the PPA Agreement and has remained unpaid beyond the Due Date; 10.4.8 In case of difficulty in opening of the Letter of Credit, the SPD may pay in advance through electronic mode for an amount equivalent to the weekly bill either on estimated basis or on the basis of previous six (6) Months average bill and inform the same to the respective Load Dispatch Centre (LDC), in such case also LDC shall schedule the power to the SPD.