Common use of T&D Credit Support Clause in Contracts

T&D Credit Support. (a) If at any time during the Term of Agreement, (i) the Credit Rating assigned to T&D by a Rating Agency, or if the T&D does not have a Credit Rating, then the rating then assigned by a Rating Agency to T&D as an issuer rating (or the T&D Guarantor, if a guaranty pursuant to Section 16.2(c) is then in effect), falls below Investment Grade or (ii) in the case where the T&D does not have a Credit Rating, the Net Worth of the T&D is less than $[TBD] (a “T&D Downgrade Event”), then the T&D (or the T&D Guarantor, if a guaranty pursuant to Section 16.2(c) is then in effect) shall promptly notify the Provider and the MPUC of such T&D Downgrade Event and shall deliver credit support to the Provider in a form and amount required pursuant to the definition of Performance Assurance set forth in Section 16.2 hereof, within five (5) Business Days of such T&D Downgrade Event. “Net Worth” means the sum, but without duplication, of (a) the value stated on the books of the T&D of the capital stock of the T&D and its subsidiaries plus (b) the amount of the paid in capital and retained earnings of the T&D and its subsidiaries, in each case as such amounts would be shown on a consolidated balance sheet of the T&D and its subsidiaries as of such time prepared in accordance with generally accepted accounting principles.

T&D Credit Support. (a) If at any time during the Term of Agreement, (i) the Credit Rating assigned to T&D by a Rating Agency, or if the T&D does not have a Credit Rating, then the rating then assigned by a Rating Agency to T&D as an issuer rating (or the T&D Guarantor, if a guaranty pursuant to Section 16.2(c17.2(c) is then in effect), falls below Investment Grade or (ii) in the case where the T&D does not have a Credit Rating, the Net Worth of the T&D is less than $[TBD] (a “T&D Downgrade Event”), then the T&D (or the T&D Guarantor, if a guaranty pursuant to Section 16.2(c17.2(c) is then in effect) shall promptly notify the Provider and the MPUC of such T&D Downgrade Event and shall deliver credit support to the Provider in a form and amount required pursuant to the definition of Performance Assurance set forth in Section 16.2 17.2 hereof, within five (5) Business Days of such T&D Downgrade Event. “Net Worth” means the sum, but without duplication, of (a) the value stated on the books of the T&D of the capital stock of the T&D and its subsidiaries plus (b) the amount of the paid in capital and retained earnings of the T&D and its subsidiaries, in each case as such amounts would be shown on a consolidated balance sheet of the T&D and its subsidiaries as of such time prepared in accordance with generally accepted accounting principles.