Common use of Right to Immediate Payment and to Draw on Letter of Credit Clause in Contracts

Right to Immediate Payment and to Draw on Letter of Credit. In addition to the rights to offset under Section 7.5 hereof, DLC shall further have the right to immediate payment from the POLR Supplier, and to draw upon the letter(s) of credit posted by the POLR Supplier under the terms of this Agreement, in the amounts and under the circumstances provided below: (a) If at any time Preliminary Supplier Charges or Supplier Charges in an amount in excess of $30 million are then due from the POLR Supplier and payable to DLC under the terms of this Agreement and the POLR II Agreement (as defined under the Capacity Agreement), DLC shall provide notice of the same to the POLR Supplier and, upon receipt thereof, the POLR Supplier shall make immediate payment to DLC of the dollar amount of such Preliminary Supplier Charges or Supplier Charges, as the case may be, in immediately available funds to the bank account designated by DLC in Section 15.3 hereof. (b) If, within ten (10) days following notice to the POLR Supplier given by DLC pursuant to Section 7.6(a), DLC has not received payment in full of the Preliminary Supplier Charges or Supplier Charges so noticed, then DLC has the right to draw upon the letter(s) of credit posted by the POLR Supplier under the terms of this Agreement in an amount up to, but not exceeding, any portion of such Preliminary Supplier Charges or Supplier Charges then unpaid by the POLR Supplier, and if DLC draws upon such letter(s) of credit, such letter(s) of credit are insufficient to pay to DLC such Preliminary Supplier Charges or Supplier Charges and the POLR Supplier fails to replace such letter(s) of credit with letter(s) of credit in such amounts as are sufficient to pay to DLC such Preliminary Supplier Charges or Supplier Charges, then DLC shall also have the right to terminate this Agreement upon ten (10) days written notice to the POLR Supplier.

Right to Immediate Payment and to Draw on Letter of Credit. In ---------------------------------------------------------- addition to the rights to escrow under Section 7.4 hereof and the rights to offset under Section 7.5 hereof, DLC shall further have the right to immediate payment from the POLR Supplier, and to draw upon the letter(s) of credit posted by the POLR Supplier under the terms of this Agreement, in the amounts and under the circumstances provided below: (a) If at any time Preliminary Supplier Charges or Supplier Charges in an amount in excess In each calendar month, as of $30 million are then due from the POLR Supplier and payable date of the invoice rendered pursuant to DLC under the terms of this Agreement and the POLR II Agreement (as defined under the Capacity Agreement)Section 7.2 hereof, DLC shall provide notice of estimate the same Net Billed Generation Revenue that would become payable to the POLR Supplier under Section 7.1 hereof during the remainder of such month (ignoring any potential escrow of funds pursuant to Section 7.4 hereof or potential offset of funds pursuant to Section 7.5 hereof). The amount so estimated is defined as the "Residual Monthly NBGR Estimate." (b) If in any calendar month the sum of the net amount of the most recent invoice rendered pursuant to Section 7.2 hereof and the net amount of the most recent statement of account rendered pursuant to Section 7.3 hereof (and less any offset from the Escrow Account made pursuant to Section 7.5 hereof) is greater than the Residual Monthly NBGR Estimate for the current month, then the difference between such sum and the Residual Monthly NBGR Estimate is defined as the "Forecast Supplier Charge Shortfall." (c) DLC may give notice to the POLR Supplier of a Forecast Supplier Charge Shortfall, and, upon receipt thereof, the POLR Supplier shall make immediate payment to DLC of the dollar amount of such Preliminary the Forecast Supplier Charges or Supplier Charges, as the case may be, Charge Shortfall in immediately available funds to the bank account designated by DLC in Section 15.3 hereof. (bd) If, within ten (10) days following notice to the POLR Supplier given by DLC pursuant to Section 7.6(a7.6 (c), DLC has not received payment in full of the Preliminary Forecast Supplier Charges or Supplier Charges Charge Shortfall so noticed, then DLC has the right to draw upon the letter(s) of credit posted by the POLR Supplier under the terms of this Agreement in an amount up to, but not exceeding, any portion of such Preliminary the Forecast Supplier Charges or Supplier Charges Charge Shortfall then unpaid by the POLR Supplier, and if and, regardless of whether DLC draws upon on such letter(s) of credit, such letter(s) of credit are insufficient to pay to DLC such Preliminary Supplier Charges or Supplier Charges and the POLR Supplier fails to replace such letter(s) of credit with letter(s) of credit in such amounts as are sufficient to pay to DLC such Preliminary Supplier Charges or Supplier Charges, then DLC shall also have the right to terminate this Agreement upon ten (10) days written notice to the POLR Supplier.

Right to Immediate Payment and to Draw on Letter of Credit. In ---------------------------------------------------------- addition to the rights to offset under Section 7.5 hereof, DLC shall further have the right to immediate payment from the POLR Supplier, and to draw upon the letter(s) of credit posted by the POLR Supplier under the terms of this Agreement, in the amounts and under the circumstances provided below: (a) If at any time Preliminary Supplier Charges or Supplier Charges in an amount in excess of $30 million are then due from the POLR Supplier and payable to DLC under the terms of this Agreement and the POLR II Agreement (as defined under the Capacity Agreement), DLC shall provide notice of the same to the POLR Supplier and, upon receipt thereof, the POLR Supplier shall make immediate payment to DLC of the dollar amount of such Preliminary Supplier Charges or Supplier Charges, as the case may be, in immediately available funds to the bank account designated by DLC in Section 15.3 hereof. (b) If, within ten (10) days following notice to the POLR Supplier given by DLC pursuant to Section 7.6(a), DLC has not received payment in full of the Preliminary Supplier Charges or Supplier Charges so noticed, then DLC has the right to draw upon the letter(s) of credit posted by the POLR Supplier under the terms of this Agreement in an amount up to, but not exceeding, any portion of such Preliminary Supplier Charges or Supplier Charges then unpaid by the POLR Supplier, and if DLC draws upon such letter(s) of credit, such letter(s) of credit are insufficient to pay to DLC such Preliminary Supplier Charges or Supplier Charges and the POLR Supplier fails to replace such letter(s) of credit with letter(s) of credit in such amounts as are sufficient to pay to DLC such Preliminary Supplier Charges or Supplier Charges, then DLC shall also have the right to terminate this Agreement upon ten (10) days written notice to the POLR Supplier.

Right to Immediate Payment and to Draw on Letter of Credit. In addition to the rights to offset under Section 7.5 hereof, DLC shall further have the right to immediate payment from the POLR Supplier, and to draw upon the letter(s) of credit posted by the POLR Supplier under the terms of this Agreement, in the amounts and under the circumstances provided below: (a) If at any time Preliminary Supplier Charges or Supplier Charges in an amount in excess of $30 million are then due from the POLR Supplier and payable to DLC under the terms of this Agreement and the POLR II Agreement (as defined under the Capacity Agreement), DLC shall provide notice of the same to the POLR Supplier and, upon receipt thereof, the POLR Supplier shall make immediate payment to DLC of the dollar amount of such Preliminary Supplier Charges or Supplier Charges, as the case may be, in immediately available funds to the bank account designated by DLC in Section 15.3 hereof. (b) If, within ten (10) days following notice to the POLR Supplier given by DLC pursuant to Section 7.6(a), DLC has not received payment in full of the Preliminary Supplier Charges or Supplier Charges so noticed, then DLC has the right to draw upon the letter(s) of credit posted by the POLR Supplier under the terms of this Agreement in an amount up to, but not exceeding, any portion of such Preliminary Supplier Charges or Supplier Charges then unpaid by the POLR Supplier, and if DLC draws upon such letter(s) of credit, such letter(s) of credit are insufficient to pay to DLC such Preliminary Supplier Charges or Supplier Charges and the POLR Supplier fails to replace such letter(s) of credit with letter(s) of credit in such amounts as are sufficient to pay to DLC such Preliminary Supplier Charges or Supplier Charges, then DLC shall also have the right to terminate this Agreement upon ten (10) days written notice to the POLR Supplier.

Right to Immediate Payment and to Draw on Letter of Credit. In ---------------------------------------------------------- addition to the rights to offset under Section 7.5 hereof, DLC shall further have the right to immediate payment from the POLR Supplier, and to draw upon the letter(s) of credit posted by the POLR Supplier under the terms of this Agreement, in the amounts and under the circumstances provided below: (a) If at any time Preliminary Supplier Charges or Supplier Charges in an amount in excess of $30 million are then due from the POLR Supplier and payable to DLC under the terms of this Agreement and the POLR II Agreement (as defined under the Capacity Agreement), DLC shall provide notice of the same to the POLR Supplier and, upon receipt thereof, the POLR Supplier shall make immediate payment to DLC of the dollar amount of such Preliminary Supplier Charges or Supplier Charges, as the case may be, in immediately available funds to the bank account designated by DLC in Section 15.3 hereof. (b) If, within ten (10) days following notice to the POLR Supplier given by DLC pursuant to Section 7.6(a), DLC has not received payment in full of the Preliminary Supplier Charges or Supplier Charges so noticed, then DLC has the right to draw upon the letter(s) of credit posted by the POLR Supplier under the terms of this Agreement in an amount up to, but not exceeding, any portion of such Preliminary Supplier Charges or Supplier Charges then unpaid by the POLR Supplier, and if DLC draws upon such letter(s) of credit, such letter(s) of credit are insufficient to pay to DLC such Preliminary Supplier Charges or Supplier Charges and the POLR Supplier fails to replace such letter(s) of credit with letter(s) of credit in such amounts as are sufficient to pay to DLC such Preliminary Supplier Charges or Supplier Charges, then DLC shall also have the right to terminate this Agreement upon ten (10) days written notice to the POLR Supplier.