Common use of Performance Assurance Clause in Contracts

Performance Assurance. If either Party ("X") has reasonable grounds to believe that the other Party's ("Y") creditworthiness or performance under this Agreement has become unsatisfactory, X may provide Y with written notice requesting Performance Assurance in an amount determined by X in a commercially reasonable manner. Upon receipt of such notice, Y shall have three (3) Business Days to remedy the situation by providing Performance Assurance to X. Failure of Y to provide Performance Assurance, or a guaranty or other credit assurance, acceptable to X within three (3) Business Days after written notice shall constitute an Event of Default under the Agreement. "Performance Assurance" means collateral in the form of either cash, Letter(s) of Credit, or other security acceptable to the requesting Party. "Letter(s) of Credit" means one or more irrevocable, transferable standby letters of credit issued by a U.S. commercial bank or a foreign bank with a U.S. branch with such bank having a credit rating of at least A- from the Standard & Poor's Rating Group or A3 from Xxxxx'x Investor Services, Inc. "Business Day" means any day except a Saturday, Sunday or a Federal Reserve Bank holiday.

Performance Assurance. If either Party ("“X"”) has reasonable grounds to believe that the other Party's ("“Y"”) creditworthiness or performance under this Agreement has become unsatisfactory, X may provide Y with written notice requesting Performance Assurance in an amount determined by X in a commercially reasonable manner. Upon receipt of such notice, Y shall have three (3) Business Days to remedy the situation by providing Performance Assurance to X. Failure of Y to provide Performance Assurance, or a guaranty or other credit assurance, acceptable to X within three (3) Business Days after written notice shall constitute an Event of Default under the Agreement. "“Performance Assurance" ” means collateral in the form of either cash, Letter(s) of Credit, or other security acceptable to the requesting Party. "“Letter(s) of Credit" ” means one or more irrevocable, transferable standby letters of credit issued by a U.S. commercial bank or a foreign bank with a U.S. branch with such bank having a credit rating of at least A- from the Standard & Poor's ’s Rating Group or A3 from Xxxxx'x Xxxxx’x Investor Services, Inc. "“Business Day" ” means any day except a Saturday, Sunday or a Federal Reserve Bank holiday.