Common use of Required Security Amount Clause in Contracts

Required Security Amount. 25.8.1 On the first day of each Adjustment Period, the Lessor shall notify the Lessee in writing and shall advise the Lessee of the amount (the "Applicable LC Increased Amount") by which the amount of the security required to be provided by the Lessee pursuant to the Letter of Credit Amount for the Security Period commencing on the first day of the relevant Adjustment Period needs to increase so that during each day of that Security Period the Letter of Credit Amount is equal to the Required LC Amount during each day of that Security Period. The Lessor shall, as contemplated by paragraph 2(a) of the Letter of Credit, copy to the LC Bank any such notice delivered to the Lessee pursuant to this sub-clause at the same time such notice is delivered to the Lessee. 25.8.2 Following receipt of any written notice from the Lessor pursuant to clause 25.8.1, if the Applicable LC Increased Amount for each day of the relevant Security Period exceeds the Variable Liability Amount of the LC Bank for each corresponding day of that Security Period as notified by the LC Bank to the Lessor pursuant to paragraph 2(b) of the Letter of Credit, the Lessee shall, on or before the date falling five (5) Banking Days after the commencement of the relevant Adjustment Period referred to in clause 25.8.1, procure that the LC Bank agrees, by means of the issue of a notice pursuant to paragraph 2(c) of the Letter of Credit, to increase the Letter of Credit Amount by an amount equal to the relevant shortfall such that the Applicable LC Increased Amount set out in that written notice for each day falling during that Security Period is equal to or less than the Variable Liability Amount for each day falling during that Security Period. 25.8.3 In addition to the obligations contained in clause 25.8.2, if at any time the Fixed Liability Amount shall be less than the Required LC Amount during any Security Period, the Lessor shall be entitled to notify the Lessee in writing not less than fifteen (15) Banking Days prior to the commencement of the relevant Security Period in which such shortfall shall arise and, upon receipt of that written notice, the Lessee shall, not later than ten (10) Banking Days prior to the commencement of the relevant Security Period, procure that the LC Bank agrees to increase the Letter of Credit Amount, in accordance with the provisions of paragraph 2(e) of the Letter of Credit, by an amount equal to the relevant shortfall and with effect from the commencement of the relevant Security Period such that with effect from the commencement of the relevant Security Period, the Fixed Liability Amount shall, following the relevant increase, be equal to the Required LC Amount for that Security Period and thereafter. 25.8.4 The provisions of this clause 25.8 set out the primary security requirements of the Lessor and apply independently of clause 25.

Required Security Amount. 25.8.1 On the first day of each Adjustment Period, the Lessor shall notify the Lessee in writing and shall advise the Lessee of the amount (the "Applicable LC Increased Amount") by which the amount of the security required to be provided by the Lessee pursuant to the Letter of Credit Amount for the Security Period commencing on the first day of the relevant Adjustment Period needs to increase so that during each day of that Security Period the Letter of Credit Amount is equal to the Required LC Amount during each day of that Security Period. The Lessor shall, as contemplated by paragraph 2(a) of the Letter of Credit, copy to the LC Bank any such notice delivered to the Lessee pursuant to this sub-clause at the same time such notice is delivered to the Lessee. 25.8.2 Following receipt of any written notice from the Lessor pursuant to clause 25.8.1, if the Applicable LC Increased Amount for each day of the relevant Security Period exceeds the Variable Liability Amount of the LC Bank for each corresponding day of that Security Period as notified by the LC Bank to the Lessor pursuant to paragraph 2(b) of the Letter of Credit, the Lessee shall, on or before the date falling five (5) Banking Days after the commencement of the relevant Adjustment Period referred to in clause 25.8.1, procure that the LC Bank agrees, by means of the issue of a notice pursuant to paragraph 2(c) of the Letter of Credit, to increase the Letter of Credit Amount by an amount equal to the relevant shortfall such that the Applicable LC Increased Amount set out in that written notice for each day falling during that Security Period is equal to or less than the Variable Liability Amount for each day falling during that Security Period. 25.8.3 In addition to the obligations contained in clause 25.8.2, if at any time the Fixed Liability Amount shall be less than the Required LC Amount during any Security Period, the Lessor shall be entitled to notify the Lessee in writing not less than fifteen (15) Banking Days prior to the commencement of the relevant Security Period in which such shortfall shall arise and, upon receipt of that written notice, the Lessee shall, not later than ten (10) Banking Days prior to the commencement of the relevant Security Period, procure that the LC Bank agrees to increase the Letter of Credit Amount, in accordance with the provisions of paragraph 2(e) of the Letter of Credit, Amount by an amount equal to the relevant shortfall and with effect from the commencement of the relevant Security Period such that with effect from the commencement of the relevant Security Period, the Fixed Liability Amount shall, following the relevant increase, be equal to the Required LC Amount for that Security Period and thereafter. 25.8.4 The provisions of this clause 25.8 set out the primary security requirements of the Lessor and apply independently of clause 25.