Seller Credit Support. Within five (5) Business Days after execution of this Agreement, Seller shall deliver to T&D Base Security that equals the Base Security Amount. At any time during the Term of this Agreement Seller shall deliver to T&D credit support in a form that meets the definition of Replacement Security, within five (5) Business Days of Seller’s receipt of T&D’s request therefor, in an amount equal to Seller’s Exposure.
Seller Credit Support. (a) Credit Support Amount.
(i) Within thirty (30) days following the Effective Date, Seller shall transfer Credit Support to Buyer having an aggregate value equal to (A) $200 multiplied by (B) the Guaranteed Storage Contract Capacity, expressed in kW (the “Pre-COD Credit Support Amount”). The Pre- COD Credit Support Amount will apply with respect to Seller until the Commercial Operation Date.
(ii) By no later than the Commercial Operation Date, Seller shall transfer Credit Support to Buyer in substitution of the Credit Support delivered pursuant to Section 6.1(a)(i) having an aggregate value equal to (A) $100 multiplied by (B) the Storage Contract Capacity, expressed in kW (the “Operating Period Credit Support Amount”).
Seller Credit Support. No later than ten (10) Business Days after the Signing Date, Seller shall provide either: (a) a Seller Guaranty from an Acceptable Guarantor in form and substance reasonably satisfactory to Purchaser; (b) a Seller Letter of Credit in form and substance, and from an issuer, reasonably satisfactory to Purchaser; or (c) a cash escrow deposited with a financial institution reasonably acceptable to Purchaser and subject to the collateral security arrangements as are reasonably acceptable to Purchaser, in an amount equal to [ ]% of the Contract Price to secure the obligations of Seller under this Agreement. This amount shall be increased to the Contract Price as of the Closing Date stepping down (on a dollar-for-dollar basis) as the Contract Price is paid through the Final Completion Date. Seller shall have the right in its sole discretion to post a Seller Letter of Credit or a Seller Guaranty (or a combination thereof) for its security posting obligations under this Section 16.1 so long as such security meets the requirements for such security set out in this Article 16. If Seller elects to provide a letter of credit, it shall be an irrevocable standby letter of credit, in form and substance acceptable to Purchaser, from a Qualified Issuer. The letter of credit must be issued for a minimum term of three hundred sixty (360) Days. Seller shall cause the renewal or extension of the letter of credit for additional consecutive terms of three hundred sixty (360) Days until the Expiration Date. Each extension or renewal shall occur no later than forty-five (45) Days prior to each expiration date of the then current letter of credit. If the letter of credit is not renewed or extended as required herein, Purchaser shall have the right to draw immediately upon the letter of credit and to place the amounts so drawn, at Seller’s cost and with Seller’s funds, in an interest bearing escrow account, until and unless Seller provides a substitute form of security meeting the requirements of this Agreement in the form of an irrevocable standby letter of credit. 44
Seller Credit Support. Seller shall provide on the date of this Agreement, and cause to be maintained until the delivery of the first invoice pursuant to Article IX of this Agreement, a Seller Guarantee in an amount equal to $5,000,000. Buyer is relying on the legal, valid, binding and enforceable nature of the Seller Guarantee as an essential inducement and consideration for entering into this Agreement.
Seller Credit Support. Purchaser shall cause all guaranties, letters of credit, documents and instruments constituting the Seller Credit Support to be terminated effective as of the Closing, and shall cause all original documents comprising the Seller Credit Support to the returned to the Sellers on the Closing Date.
Seller Credit Support. (a) Section 5.09(a) of the Seller Disclosure Schedule sets forth a complete list of all Seller Credit Support outstanding as of the date hereof. On the Closing Date, Seller shall deliver to Buyer an updated version of Section 5.09(a) of the Seller Disclosure Schedule that sets forth a complete list of all Seller Credit Support outstanding as of the Closing Date. From the date hereof until no Seller Credit Support remains outstanding (which may be, for the avoidance of doubt, if applicable, after the Closing), Buyer shall use its commercially reasonable efforts to (i) arrange for substitute letters of credit, guarantees and other obligations to replace any letters of credit, guarantees, financial assurances, surety bonds, performance bonds and other contractual obligations entered into by or on behalf of Seller or any of its Affiliates in connection with the Business (collectively, together with all obligations thereunder, the “Seller Credit Support”) or (ii) assume all obligations under each instrument of Seller Credit Support, obtaining from the creditor or other counterparty (or, in the case of letters of credit, bonds or other similar Seller Credit Support, the issuing bank (or similar entity) thereof) a full release (in a form and substance satisfactory to Seller) of all parties liable, directly or indirectly, for reimbursement to the creditor or issuing bank (or similar entity), as applicable, or fulfillment of other obligations to a counterparty or issuing bank (or similar entity), as applicable, in connection with amounts drawn or otherwise due and payable under such instrument of Seller Credit Support (including any lenders or other financing parties participating in such letters of credit, bonds or similar instruments of Seller Credit Support). To the extent any Seller Credit Support remains outstanding following the Closing, Buyer shall (A) indemnify and hold harmless Seller and its Affiliates against, and reimburse Seller and its Affiliates for, any and all amounts paid, including costs, fees or expenses in connection with such Seller Credit Support, including Seller’s and its Affiliates’ fees in maintaining such Seller Credit Support, whether or not any such Seller Credit Support is drawn upon or required to be paid or otherwise performed, and (B) in any event, promptly reimburse Seller and its Affiliates to the extent any Seller Credit Support is drawn upon and Seller or any of its Affiliates makes any payment, including any reimbursement of...
Seller Credit Support. 6.2.1 The Seller Credit Support shall be [An amount to be determined on a project-specific basis based on the Commission’s assessment of the risks and benefits of this contract].
6.2.2 Seller shall deliver Seller Credit Support to T&D [According to the schedule and in the amount(s) approved by the Commission based on the Commission’s assessment of the risks and benefits of this contract].
6.2.3 So long as no Event of Default exists and is continuing [The amount of security may be reduced by the amount(s) and in accordance with the schedule approved by the Commission based on the Commission’s assessment of the risks and benefits of this contract]. T&D shall return Credit Support in excess of the required amount, with any accrued interest, if applicable, within ten (10) Business Days of T&D’s receipt of Seller’s written request for return of such Credit Support.
6.2.4 Any cash provided by Seller as Credit Support under this Agreement shall be held in 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 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.
6.2.5 At the expiry of the Term, T&D shall return or release to Seller all unused Credit Support, with interest if applicable.
Seller Credit Support. Between the date hereof and the Closing, the Buyer shall use commercially reasonable efforts to replace the letter of credit issued by Seller referenced on Section 6.13 of the Disclosure Schedules with a letter of credit issued by Buyer or its designee. In the event that the Buyer cannot replace such letter of credit, at the Closing Buyer shall issue a letter of credit for the benefit of Seller, which letter of credit will be issued by a creditworthy financial institution and will backstop all obligations of Seller under such letter of credit.
Seller Credit Support. Within [**], Seller shall procure, deliver and maintain (or cause to be procured, delivered and maintained) a Letter of Credit issued to Buyer for [**] (“Seller Credit Support Amount”). Such Letter of Credit shall be subject to the following additional terms: (i) the Letter of Credit shall not be in lieu of payment of any other amounts due to the Buyer, nor shall it operate as a limit or cap on amounts otherwise payable to the Buyer. All costs and charges relating to the issuance, maintenance, replenishment and renewal or replacement (as applicable) of the Letter of Credit, and the remittance of money to the Buyer under the Letter of Credit, including telegraphic transfer charges and all other charges, fees and expenses, shall be borne solely by Seller;
Seller Credit Support. Seller shall provide Credit Support in the amount of dollars ($ ) no later than ninety (90) days after the Effective Date.
