Common use of Payment Under Surety Bond Clause in Contracts

Payment Under Surety Bond. The Surety Companies shall make their pro rata payment under the Surety Bond to the Purchaser not later than 10 Business Days after receipt of a demand for payment pursuant to Section 5.04(c). It is expressly agreed that, as provided in Section 5 to the Initial Surety Bond (and the corresponding section in any Substitute Surety Bond), the payment by the Surety Companies of their respective Commitment Percentage of the amount demanded in accordance with this Section 5.04 shall, as to such Surety Company, constitute satisfaction in full of all of its obligations under the Surety Bond. Such payment shall be the exclusive remedy of the Purchaser under the Surety Bond. Upon payment by a Surety Company, the Purchaser shall assign its rights to payment against the Seller and Enron to such Surety Company. The Seller and Enron acknowledge that payment shall be made by the Surety Companies in strict compliance with their respective obligations under the Surety Bond (including Section 4 of the Initial Surety Bond or the equivalent provision in any Substitute Surety Bond) and agree not to dispute prior to payment any payment by the Surety Companies in compliance with the Surety Bond. Notwithstanding the foregoing, and notwithstanding the provisions of any Surety Bond (including but not limited to paragraphs 4 and 9 of the Initial Surety Bond) no written notice as between the Purchaser and Surety Companies, and no payment to or for the benefit of the Purchaser by the Seller, Enron or the Surety Companies shall constitute a waiver of any other right, remedy or power of the Seller or Enron under this Agreement or any document executed in connection herewith.

Payment Under Surety Bond. The Surety Companies shall make their pro rata payment under the Surety Bond to the Purchaser not later than 10 Business Days after receipt of a demand for payment pursuant to Section Sec­tion 5.04(c). It is expressly agreed that, as provided in Section 5 to the Initial Surety Bond (and the corresponding section in any Substitute Surety Bond), the payment by the Surety Companies of their respective Commitment Percentage of the amount demanded in accordance with this Section 5.04 shall, as to such Surety Company, constitute satisfaction in full of all of its obligations under the Surety Bond. Such payment shall be the exclusive remedy of the Purchaser under the Surety Bond. Upon payment by a Surety Company, the Purchaser shall assign its rights to payment against the Seller and Enron to such Surety Company. The Seller and Enron acknowledge that payment shall be made by the Surety Companies in strict compliance with their respective obligations under the Surety Bond (including Section 4 of the Initial Surety Bond or the equivalent provision in any Substitute Surety Bond) and agree not to dispute prior to payment any payment by the Surety Companies in compliance with the Surety Bond. Notwithstanding the foregoing, and notwithstanding the provisions of any Surety Bond (including included but not limited to paragraphs 4 and 9 of the Initial Surety Bond) no written notice as between the Purchaser and Surety Companies, and no payment to or for the benefit of the Purchaser by the Seller, Enron or the Surety Companies shall constitute a waiver of any other right, remedy or power of the Seller or Enron under this Agreement or any document executed in connection herewith.

Payment Under Surety Bond. The Surety Companies shall make their pro rata payment under the Surety Bond to the Purchaser not later than 10 Business Days after receipt of a demand for payment pursuant to Section Sec­tion 5.04(c). It is expressly agreed that, as provided in Section 5 to the Initial Surety Bond (and the corresponding section in any Substitute Surety Bond), the payment by the Surety Companies of their respective Commitment Percentage of the amount demanded in accordance with this Section 5.04 shall, as to such Surety Company, constitute satisfaction in full of all of its obligations under the Surety Bond. Such payment shall be the exclusive remedy of the Purchaser under the Surety Bond. Upon payment by a Surety Company, the Purchaser shall assign its rights to payment against the Seller and Enron to such Surety Company. The Seller and Enron acknowledge that payment shall be made by the Surety Companies in strict compliance with their respective obligations under the Surety Bond (including Section 4 of the Initial Surety Bond or the equivalent provision in any Substitute Surety Bond) and agree not to dispute prior to payment any payment by the Surety Companies in compliance with the Surety Bond. Notwithstanding the foregoing, and notwithstanding the provisions of any Surety Bond (including included(including but not limited to paragraphs 4 and 9 of the Initial Surety Bond) no written notice as between the Purchaser and Surety Companies, and no payment to or for the benefit of the Purchaser by the Seller, Enron or the Surety Companies shall constitute a waiver of any other right, remedy or power of the Seller or Enron under this Agreement or any document executed in connection herewith.