Credit Assurances definition

Credit Assurances means a letter of credit, third-party guarantee, collateral or other form of credit support which the Party entitled to request such financial assurances determines to be satisfactory in its sole discretion; provided, that the amount of Credit Assurances that may be required shall be commercially reasonable and shall not exceed the amount that would be due to the Unaffected Party under Section 13.2.1 in the event of a default, as reasonably determined by the Unaffected Party.

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Credit Assurances means a letter of credit or cash collateral. The amount of Credit Assurances that may be required shall be commercially reasonable and shall not exceed the amount that would be due to the Unaffected Party under Section 12.3 event of a default, as reasonably determined by the Unaffected Party. "Defaulting Party" has the meaning specified Section 12.1. "Early Termination Date" has the meaning specified in Section 12.2. "Effective Date" means the first date set forth above with respect to this Agreement and, in the case of a Transaction, the date the Parties enter into such agreement unless otherwise specified by the Parties. "Energy" is energy as defined by NEPOOL . "EPT" means Eastern Prevailing Time and refers to the time in effect in the Eastern Time Zone of the United States, whether Eastern Standard Time or Eastern Daylight Savings Time. "Equitable Defenses" means bankruptcy, insolvency, reorganization and other laws affecting creditors' rights generally, and with regard to equitable remedies, the discretion of the court before which proceedings to obtain the same may be pending. "Event of Default" has the meaning specified in Section 12.1. "FERC" means the Federal Energy Regulatory Commission or any successor agency that enforces the Federal Power Act, as amended from time to time. "Firm Energy" is energy the purchase and/or sale of which is not interruptible for any reason other than Force Majeure.

Credit Assurances. If a Party (“Party A”) has reasonable grounds to believe that the other Party’s (“Party B”) creditworthiness or performance under this Confirmation has become unsatisfactory, Party A will provide Party B with written notice requesting Performance Assurance in an amount determined by Party A in a commercially reasonable manner. Upon receipt of such notice, Party B shall have three (3) Business Days to remedy the situation by providing such Performance Assurance to Party A. In the event that Party B fails to provide such Performance Assurance, or a guaranty or other credit assurance acceptable to Party A within three (3) Business Days of receipt of notice, then an Event of Default will be deemed to have occurred and Party A will be entitled to the remedies set forth in Section 4, Remedies Upon Event of Default. “Performance Assurance” means collateral in the form of either cash, Letter(s) of Credit, or other security acceptable to Party A. Limitation of Damages: This section survives the expiration or termination of this Confirmation. Recordings: Each Party consents to the creation of a tape or electronic recording ("Recording") of all telephone conversations and instant messages between the Parties to this Confirmation, and that any such Recordings will be retained in confidence, secured from improper access, and may be submitted in evidence in any proceeding or action relating to this Confirmation. Each Party waives any further notice of such monitoring or recording, and agrees to notify its officers and employees of such monitoring or recording and to obtain any necessary consent of such officers and employees.

Examples of Credit Assurances in a sentence

Credit and Collateral Requirements (a) Financial Information: [x] Option A [] Option B Specify: [] Option C Specify: (b) Credit Assurances: [x] Not Applicable [] Applicable (c) Collateral Threshold: [x] Not Applicable [] Applicable If applicable, complete the following: Party B Collateral Threshold: $ N/A; provided, however, that Party B’s Collateral Threshold shall be zero if an Event of Default or Potential Event of Default with respect to Party B has occurred and is continuing.
Any Credit Assurances posted by the then-current Members shall be reduced to reflect the New Member’s Credit Assurances and in accordance with such Member’s Sharing Ratio in respect of such Series.
Option B Specify: Option C Specify: (b) Credit Assurances: Not Applicable.
Any Credit Assurances posted by the then-current Members shall be reduced to reflect the New Member’s Credit Assurances and in accordance with such Member’s Sharing Ratio.
If the security is not renewed or extended as required herein, Company shall have the right to draw immediately upon the security and to place the amounts so drawn, at Seller's cost and with Seller's funds, in an interest bearing escrow account in accordance with Section 14.10 (Security in the Form of Cash), until and unless Seller provides a substitute form of such security meeting the requirements of this Article 14 (Credit Assurances and Security).
Any Credit Assurances posted by EQT and USG shall be reduced to reflect the New Member’s Credit Assurances and in accordance with such Member’s Sharing Ratio in the applicable Series.
Any Credit Assurances posted by EQT and USG shall be reduced to reflect the New Member’s Credit Assurances and in accordance with such Member’s Sharing Ratio.
Option C Credit Assurances from Party A, Section 8.2(b): Not Applicable X Applicable Collateral Threshold for Party A, Section 8.2(c ): Not Applicable X Applicable If applicable, complete the following: Party A Collateral Threshold: means with respect to Party A, at any time the amount specified in the table below under the relevant heading opposite the lower of the ratings at that time assigned by Standard & Poor’s Rating Services, a division of The ▇▇▇▇▇▇-▇▇▇▇ Companies, Inc.
MEP shall have the option of securing Credit Assurances in the form of guaranties, cash deposits or letters of credit meeting the requirements of this Section 12.3 from separate Credit Support Providers, provided that (i) the aggregate amount of the Credit Assurances so provided equals the Credit Support Amount and (ii) each such Credit Support Provider providing a guaranty must at all times qualify as Investment Grade within the meaning of Section 12.2.
Not less than twelve months prior to the Commencement Date, MEP shall either establish that it is creditworthy or shall provide Credit Assurances in the amount of the Credit Support Amount.