Common use of Performance Assurance Clause in Contracts

Performance Assurance. “Performance Assurance” shall mean, at the election of T&D, either: (a) an irrevocable letter of credit issued by a U.S. office of a commercial bank or trust company organized under the laws of the United States (or any state or a political subdivision thereof) or a Canadian Schedule A Chartered Bank with a U.S. branch office or U.S. affiliate bank and, in either case, having a long term debt rating or deposit rating of at least (A) Baa1 from Xxxxx’x, and (B) BBB+ from Standard & Poor’s; or (b) so long as no T&D Downgrade Event has occurred with respect to the T&D Guarantor, a guaranty of the T&D obligations hereunder issued by the T&D Guarantor in substantially the same form as the guaranty delivered by the Provider to the T&D as of the date hereof pursuant to the requirements of Chapter 301 of the MPUC Rules and Regulations; (c) cash; or (d) such other Performance Assurance as is reasonably acceptable to the Provider, in each case in an amount set forth in Exhibit E; provided, that, to the extent that Performance Assurance delivered by T&D is in the form of cash and T&D makes any payment to Provider in advance of the date on which T&D is otherwise required to make payment to Provider pursuant to Section 8.3 hereof, T&D may request that Provider return such Performance Assurance to the extent of such early payment (and, unless T&D is in default under this Agreement, Provider shall so return such Performance Assurance within two (2) Business Days after such request); provided, further, however, that in the event that T&D ceases to make payments in advance of the date on which T&D is required to make payment to Provider pursuant to Section 8.3 hereof, within five (5) Business Days after request by Provider, T&D shall provide additional Performance Assurance to Provider, such that the aggregate amount of Performance Assurance held by Provider is equal to an amount set forth in Exhibit E for the applicable period.

Performance Assurance. “Performance Assurance” shall mean, at the election of T&D, either: (a) an irrevocable letter of credit issued by a U.S. office of a commercial bank or trust company organized under the laws of the United States (or any state or a political subdivision thereof) or a Canadian Schedule A Chartered Bank with a U.S. branch office or U.S. affiliate bank and, in either case, having a long term debt rating or deposit rating of at least (A) Baa1 from Xxxxx’x, and (B) BBB+ from Standard & Poor’s; or (b) so long as no T&D Downgrade Event has occurred with respect to the T&D Guarantor, a guaranty of the T&D obligations hereunder issued by the T&D Guarantor in substantially the same form as the guaranty delivered by the Provider to the T&D as of the date hereof pursuant to the requirements of Chapter 301 of the MPUC Rules and Regulations; (c) cash; or (d) such other Performance Assurance as is reasonably acceptable to the Provider, in each case in an amount set forth in the MPUC Order and shown in Exhibit E; provided, that, to the extent that Performance Assurance delivered by T&D is in the form of cash and T&D makes any payment to Provider in advance of the date on which T&D is otherwise required to make payment to Provider pursuant to Section 8.3 hereof, T&D may request that Provider return such Performance Assurance to the extent of such early payment (and, unless T&D is in default under this Agreement, Provider shall so return such Performance Assurance within two (2) Business Days after such request); provided, further, however, that in the event that T&D ceases to make payments in advance of the date on which T&D is required to make payment to Provider pursuant to Section 8.3 hereof, within five (5) Business Days after request by Provider, T&D shall provide additional Performance Assurance to Provider, such that the aggregate amount of Performance Assurance held by Provider is equal to an amount set forth in the MPUC Order and shown in Exhibit E for the applicable period.

Performance Assurance. “Performance Assurance” shall mean, at the election of T&D, ,either: (a) an irrevocable letter of credit issued by a U.S. office of a commercial bank or trust company organized under the laws of the United States (or any state or a political subdivision thereof) or a Canadian Schedule A Chartered Bank with a U.S. branch office or U.S. affiliate bank and, in either case, having a long term debt rating or deposit rating of at least (A) Baa1 from Xxxxx’x, and (B) BBB+ from Standard & Poor’s; or (b) so long as no T&D Downgrade Event has occurred with respect to the T&D Guarantor, a guaranty of the T&D obligations hereunder issued by the T&D Guarantor in substantially the same form as the guaranty delivered by the Provider to the T&D as of the date hereof pursuant to the requirements of Chapter 301 of the MPUC Rules and Regulations; (c) cash; or (d) such other Performance Assurance as is reasonably acceptable to the Provider, in each case in an amount set forth in Exhibit E; provided, that, to the extent that Performance Assurance delivered by T&D is in the form of cash and T&D makes any payment to Provider in advance of the date on which T&D is otherwise required to make payment to Provider pursuant to Section 8.3 hereof, T&D may request that Provider return such Performance Assurance to the extent of such early payment (and, unless T&D is in default under this Agreement, Provider shall so return such Performance Assurance within two (2) Business Days after such request); provided, further, however, that in the event that T&D ceases to make payments in advance of the date on which T&D is required to make payment to Provider pursuant to Section 8.3 hereof, within five (5) Business Days after request by Provider, T&D shall provide additional Performance Assurance to Provider, such that the aggregate amount of Performance Assurance held by Provider is equal to an amount set forth in Exhibit E for the applicable period.

Performance Assurance. “Performance Assurance” shall mean, at the election of T&D, either: (a) an irrevocable letter of credit issued by a U.S. office of a commercial bank or trust company organized under the laws of the United States (or any state or a political subdivision thereof) or a Canadian Schedule A Chartered Bank with a U.S. branch office or U.S. affiliate bank and, in either case, having a long term debt rating or deposit rating of at least (A) Baa1 from Xxxxx’xMoody’s, and (B) BBB+ from Standard & Poor’s; or (b) so long as no T&D Downgrade Event has occurred with respect to the T&D Guarantor, a guaranty of the T&D obligations hereunder issued by the T&D Guarantor in substantially the same form as the guaranty delivered by the Provider to the T&D as of the date hereof pursuant to the requirements of Chapter 301 of the MPUC Rules and Regulations; (c) cash; or (d) such other Performance Assurance as is reasonably acceptable to the Provider, in each case in an amount set forth in Exhibit E; provided, that, to the extent that Performance Assurance delivered by T&D is in the form of cash and T&D makes any payment to Provider in advance of the date on which T&D is otherwise required to make payment to Provider pursuant to Section 8.3 hereof, T&D may request that Provider return such Performance Assurance to the extent of such early payment (and, unless T&D is in default under this Agreement, Provider shall so return such Performance Assurance within two (2) Business Days after such request); provided, further, however, that in the event that T&D ceases to make payments in advance of the date on which T&D is required to make payment to Provider pursuant to Section 8.3 hereof, within five (5) Business Days after request by Provider, T&D shall provide additional Performance Assurance to Provider, such that the aggregate amount of Performance Assurance held by Provider is equal to an amount set forth in Exhibit E for the applicable period.