Common use of Project Development Security Clause in Contracts

Project Development Security. Seller shall post Project Development Security in the form of cash or letter of credit, equal to $15.00/kW multiplied by the Payment Quantity, as of the Execution Date of the Agreement. Seller shall post an additional Project Development Security in the form of cash or letter of credit, equal to $45.00/kW multiplied by the Payment Quantity (for a total Project Development Security of $60.00/kW multiplied by the Payment Quantity), to be posted eleven months after CPUC Approval. (b) Prior to the IDD, Seller shall post Delivery Term Security in the form of cash or letter of credit, in an amount equal to the greater of $125.00/kW multiplied by the Payment Quantity or 10% of the sum of the highest estimated Capacity Payments for any 36-month period during the Delivery Term. Seller may apply the Project Development Security toward the Delivery Term Security.