Credit Support Security definition
Examples of Credit Support Security in a sentence
Buyer may apply the Credit Support Security at any time to reduce amounts due from Seller to Buyer under this Agreement which are not paid when due.
If Seller does not meet the Credit Rating requirements of (1) and (2) in the preceding sentence, it 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 a guaranty as Credit Support Security on behalf of the Seller, and the size of the project.
If at any time during the Term, Seller maintains a Credit Rating of (1) “Aa2” or higher by ▇▇▇▇▇’▇ and (2) “AA” or higher by S&P, then Seller will not be required to post any Credit Support Security.
If Seller, or the entity providing a guaranty 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 S&P, and the amount of Credit Support for Seller (as shown on the Credit Matrix) will be based upon this equivalent Credit Rating.
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.
Avista shall also be entitled to draw upon the Credit Support Security for damages arising under the Agreement, without regard to whether Avista exercises any right to terminate the Agreement.
Upon the occurrence of a Letter of Credit Default, ▇▇▇▇▇▇ agrees to deliver a substitute Letter of Credit or other Credit Support Security (in a form acceptable to Avista) to Avista in an amount at least equal to that of the Letter of Credit to be replaced on or before the second (2nd) Business Day after written demand by Avista.
Seller, or its Affiliate, shall post “Delay Security,” in accordance with Section 5.3.5, in the form of Cash, Letter of Credit, Guaranty, or other form of Credit Support Security acceptable to Avista.
If ▇▇▇▇▇▇ fails to pay any amount due to Avista within the time provided for payment hereunder, Avista shall be entitled to draw upon the Credit Support Security.
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.