Performance Security Required Clause Samples
Performance Security Required. MCVFD will deposit with the City an annually renewable, irrevocable performance letter of credit in a form required herein and acceptable to the City. The amount of the performance letter of credit shall be Ninety-Two Thousand, Eight Hundred Twelve and 00/100 Dollars ($92,812.00). Because it will be impracticable to determine the actual damages in the event of MCVFD’s failure to perform or any other Major Breach, the parties hereby agree this is a reasonable amount for total liquidated damages. It is expressly understood that the total liquidated damages, or a lesser amount as provided herein, is not considered a penalty, but shall be deemed, taken and treated as reasonable liquidated damages. The letter of credit will be used to assure the provision of services required by this Agreement and mitigate damages to the City, including, but not limited to, conducting a procurement process, negotiations, equipment purchases, labor costs and related expenses, should City terminate this Agreement for Major Breach or otherwise be entitled to liquidated damages as provided herein.
Performance Security Required. By no later than the Addendum Effective Date, QF shall provide to Alabama Power and maintain thereafter, performance security in favor of Alabama Power in the form of Cash Security or a Letter of Credit (“Performance Security”), in either case in an available undrawn amount equal to the Performance Security Amount.