Seller’s Credit and Collateral Requirements. If, at any time during the Term Seller does not have a Credit Rating, or if its Credit Rating is below BBB- from S&P or Baa3 from Xxxxx’x, if rated by both S&P and Xxxxx’x or below BBB- from S&P or Baa3 from Xxxxx’x, if rated by either S&P or Xxxxx’x, but not both, Seller shall provide and maintain collateral with Buyer in an amount equal to the sum of the following: (i) twenty percent (20%) of the sum of the estimated Delivered Capacity Payments for all of the remaining months of the Delivery Period including the current month, with such estimated Delivered Capacity Payments being based on the applicable Monthly Quantity values times the applicable Contract Price, plus (ii) twenty percent (20%) of the estimated Undelivered Energy Penalty based on the associated Monthly Contracted Quantity (collectively, “Performance Assurance”). If Seller’s Credit Rating is at or above BBB- from S&P and Baa3 from Xxxxx’x, if rated by both S&P and Xxxxx’x, or at or above BBB- from S&P or Baa3 from Xxxxx’x, if rated by either S&P or Xxxxx’x, but not both, Seller shall have no obligation to provide Performance Assurance to Buyer, and Sections 5.2 through 5.5 will not be applicable. If required pursuant to Section 5.1(a) as of the Execution Date, Seller shall post the Performance Assurance with Buyer within ten (10) Business Days of the Execution Date. If required pursuant to Section 5.1(a) at any other time during the Term, Seller shall post the Performance Assurance with Buyer within five (5) Business Days of the date of the event that triggered Seller’s posting requirement under Section 5.1(a).
Appears in 5 contracts
Samples: Resource Purchase Agreement, Resource Purchase Agreement, Resource Purchase Agreement
