Security and Credit Support Clause Samples
Security and Credit Support. (i) Without limitation of Section 5.6(b), if DGOC (or any of its Affiliates) markets any Hydrocarbon production of the Oaktree Group from or attributable to the JV Interests, none of Oaktree or any of its Affiliates shall be obligated to provide any security or credit support to any counterparty to any agreement or arrangement in respect of the marketing, transportation, gathering, processing or treatment of such Hydrocarbon production unless otherwise expressly agreed to in writing by Oaktree.
(ii) Without limitation of the foregoing, but subject to Section 5.6(d)(iii), if (A) DGOC (or any of its applicable Affiliates) will market any Hydrocarbon production of the Oaktree Group from or attributable to any JV Interests that are jointly acquired by the Parties (or their respective applicable Affiliates) in connection with an Acquisition Opportunity hereunder and (B) the Parties have mutually agreed in writing that, as a result of or in connection therewith, DGOC (or its applicable Affiliate) will be obligated to (1) provide any security or credit support to any counterparty to any agreement or arrangement in respect of the marketing, transportation, gathering, processing or treatment of such Hydrocarbon production or (2) pay any additional firm transportation fees to any such counterparty in respect of such Hydrocarbon production, then Oaktree shall reimburse DGOC, on a monthly basis, for Oaktree’s applicable Working Interests Share of (x) any costs or expenses actually paid by DGOC (or any of its applicable Affiliates) in connection with providing such security or credit support and/or (y) such firm transportation fees.
(iii) Notwithstanding Section 5.6(d)(ii), if any such security, credit support or firm transportation fees cover, or relate to, any Hydrocarbon production from or attributable to any assets, properties or interests other than such applicable JV Interests, then Oaktree shall only be obligated to reimburse DGOC (or its applicable Affiliate(s)), on a monthly basis, for a portion of such applicable costs, expenses and/or fees that is equal to the product of (A) the total amount of such applicable costs, expenses and/or fees that are actually paid by DGOC (or any of its applicable Affiliates) multiplied by (B) the quotient of (1) the aggregate volume of Oaktree’s (or its applicable Affiliates’) Hydrocarbons that are (x) marketed by DGOC (or its applicable Affiliate), (y) subject to the applicable agreement or arrangement and (z) utilizing throug...
Security and Credit Support. 7.1 Credit Support. At any time during the Term, Seller may have to post Credit Support Security in the amounts outlined on the Credit Matrix based upon its’ Credit Rating or that of the entity providing credit assurances as Credit Support Security on behalf of the Seller, and the size of the project. If Seller has a published Credit Rating from each of S&P and ▇▇▇▇▇’▇, the lower rating will be used to determine the level of Credit Support in the Credit Matrix. If Seller, or the entity providing credit assurances as Credit Support Security on behalf of the Seller, has no published Credit Rating, an equivalent Credit Rating will be determined by Buyer through the application of Buyer’s proprietary credit scoring model developed in conjunction with a third party, and the amount of Credit Support for Seller (as shown on the Credit Matrix) will be based upon this equivalent Credit Rating. If the required Credit Support is greater than zero dollars ($0.00), upon the request of Buyer, Seller shall provide the Credit Support in the form of: (x) a guaranty, in form and substance acceptable to Buyer in its sole discretion from a Person acceptable to Buyer in its sole discretion, (y) a Letter of Credit, or (z) a Cash Escrow. [IE has requested language to the effect of: Buyer shall be required to post Credit Support Security in the amount of % of the Credit Support if the same is required at any time before the milestone set forth in Section 2.2.3 has been met; and after such milestone has been met, Buyer shall be required to post Credit Support Security in the amount of 100% of the required Credit Support.]
Security and Credit Support