Provider’s Credit Support Sample Clauses
Provider’s Credit Support. (a) The financial security requirements imposed on the Provider by the MPUC’s RFP shall be administered by the T&D.
(b) The Base Security amount must be furnished to T&D as provided for in the MPUC’s RFP. The Order designating Provider as a Standard Offer Provider will indicate the form or forms of financial security that Provider initially will furnish to T&D in order to satisfy the Base Security requirements, including whether the Base Security amounts will decline during the Term of Service.
(c) From time to time, as determined by T&D in its discretion, T&D shall calculate the Excess Market Exposure Security. The method that T&D shall use to calculate Excess Market Exposure Security is described in Appendix 1 hereto. If the Excess Market Exposure Security amount is greater than zero, the T&D may request and the Provider must provide, within three (3) Business Days of T&D’s request, additional security equal to the Excess Market Exposure Security amount. If the Excess Market Exposure Security amount is less than zero, the Provider may request, and the T&D must return within three (3) Business Days of Provider’s request, an amount of Provider’s security equal to the absolute value of the Excess Market Exposure Security amount; provided, however, under no circumstances shall the T&D be required to return an amount of security that would result in the Current Security amount equaling less than the applicable Base Security amount. If the Excess Market Exposure Security amount equals zero, then Provider shall not be required to furnish additional security.
(d) If the Provider has furnished a corporate guaranty, to the extent that the Excess Market Exposure Security amount plus the Current Security amount is less than or equal to the Guaranty Cap, then the Provider may increase its corporate guaranty to the Excess Market Exposure Security amount plus the Current Security amount.
(e) If the Provider has furnished cash or a letter credit, or the Provider or Provider Guarantor is not able to satisfy any additional security requirement in form of a corporate guaranty because of the applicable Guaranty Cap, then the Provider may provide cash or another letter of credit (provided that such letter of credit meets the requirements set forth in the MPUC’s RFP) in the amount of the Excess Market Exposure Security. To the extent that the applicable Guaranty Cap is greater than the Current Security amount, but less than the Excess Market Exposure Security amount plus the ...
Provider’s Credit Support. (a) The financial security requirements imposed on the Provider shall be administered by the T&D.
(b) The Base Security amount must be furnished to T&D before the commencement of the Term of Service and shall not decrease over the Term of Service. The Order designating Provider as a Standard Offer Provider will indicate the form or forms of financial security that Provider initially will furnish to T&D in order to satisfy the Base Security requirements.
(c) If the Provider is not able to provide all or a portion of the Base Security amount in the form of a corporate guaranty because of the applicable Guarantee Cap, then the Provider may provide cash or a letter of credit (provided that such letter of credit meets the requirements set forth in the MPUC’s RFP) to satisfy the Base Security requirement set forth herein.
Provider’s Credit Support. (a) The financial security requirements imposed on the Provider shall be administered by the T&D.
(b) The Base Security amount must be furnished to T&D before the commencement of the Term of Service and shall not decrease over the Term of Service. The Order designating Provider as a Standard Offer Provider will indicate the form or forms of financial security that Provider initially will furnish to T&D in order to satisfy the Base Security requirements.
(c) If the Provider is not able to provide all or a portion of the Base Security amount in the form of a corporate guaranty because of the applicable Guarantee Cap, then the Provider may provide cash or a letter of credit (provided that such letter of credit meets the requirements set forth in the MPUC’s RFP) to satisfy the Base Security requirement set forth herein.
(d) Any cash provided by Provider as Provider’s Credit Support under this Agreement shall be held in an interest-bearing deposit account selected by T&D in its reasonable discretion; provided, however, that T&D shall have no obligation to segregate any cash provided as Provider’s Credit Support in a segregated account. Interest shall accrue on that cash deposit at the daily federal funds rate and shall be retained in that account.