Default Security definition

Default Security is defined in Section 8.2.1.

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Default Security means a Guaranty or a Letter of Credit, in each case, in an amount equal to One Hundred Dollars ($100) per kW of the Nameplate Capacity Rating.

Default Security unless otherwise agreed to by the Parties in writing, means the amount of either a Letter of Credit or cash placed in an escrow account sufficient to replace twelve (12) average months of replacement power costs over the term of this Agreement, and shall be calculated by taking the average, over the term of this Agreement, of the positive difference between (a) the monthly forward power prices at [specify POD] (as determined by PacifiCorp in good faith using information from a commercially reasonable independent source), multiplied by 110%, minus (b) the average of the Fixed Avoided Cost Prices specified in Schedule 37, and multiplying such difference by (c) the Minimum Annual Delivery; provided, however, the amount of Default Security shall in no event be less than the amount equal to the payments PacifiCorp would make for three (3) average months based on Seller’s average monthly volume over the term of this Agreement and utilizing the average Fixed Avoided Cost Prices specified in Schedule 37. Such amount shall be fixed at the Effective Date of this Agreement.

Examples of Default Security in a sentence

• If on the Commercial Operation Date or at any time thereafter during the Term Seller fails to satisfy the Credit Requirements, then within ten (10) Business Days after the earlier of Seller’s receipt of notice from (a) any source that Seller no longer satisfies the Credit Requirements or (b) PacifiCorp requesting the posting of Default Security, Seller must provide to PacifiCorp and maintain in accordance with this Section 8, Default Security.

• PacifiCorp shall be entitled to draw upon the Default Security for: (A) damages if this Agreement is terminated under Section 11 because of a Seller Event of Default; and (B) any other amounts owing and not timely paid by Seller to PacifiCorp under this Agreement.

• If after the Commercial Operation Date the Default Security, if required, has been provided to PacifiCorp pursuant to Section 8.3 and no unpaid damages are owed by Seller to PacifiCorp under this Agreement, then, within ten (10) Business Days of receipt of written request by Seller, PacifiCorp shall return to Seller any Project Development Security then held by PacifiCorp.

• Seller shall not be required to maintain the Project Development Security after the Commercial Operation Date if no unpaid damages are owed to PacifiCorp under this Agreement and, if applicable, the Default Security has been provided as required under this Agreement.

• Within five (5) Business Days from receipt of a written request from PacifiCorp at any time after the Commercial Operation Date, Seller shall provide to PacifiCorp all such financial information and records as PacifiCorp may reasonably request in order to verify that Seller continues to satisfy the requirements of this Section 8, including that any Default Security and the Security Provider continues to satisfy the requirements of this Section 8.

More Definitions of Default Security

Default Security is an amount equal to fifty dollars ($50) per kW of the final Nameplate Capacity Rating.

Default Security. A dollar amount computed by the annual On-Peak Hours multiplied by the (On-Peak price less Off-Peak price) multiplied by Annual Net Energy Amount divided by 8,760 where the On-Peak price and Off-Peak price are the applicable prices specified in Appendix E.

Default Security is an amount equal $25 per KW of Nameplate Capacity Rating.

Default Security unless otherwise agreed to by the Parties in writing, means the amount of either a Letter of Credit or cash placed in an escrow account sufficient to replace twelve (12) average months of replacement power costs over the term of this Agreement, and shall be calculated by taking the average, over the term of this Agreement, of the positive difference between (a) the monthly forward power prices at [specify POD] (as determined by PacifiCorp in good faith using information from a commercially reasonable independent source), multiplied by 110%, minus (b) the average of the Fixed Avoided Cost Prices specified in the Standard Avoided Cost Rates Schedule, and multiplying such difference by (c) the Minimum Annual Delivery; provided, however, the amount of Default Security shall in no event be less than the amount equal to the payments PacifiCorp would make for three (3) average months based on Seller’s average monthly volume over the term of this Agreement and utilizing the average Fixed Avoided Cost Prices specified in the Standard Avoided Cost Rates Schedule. Such amount shall be fixed at the Effective Date of this Agreement.

Default Security means the Cash Deposit Security or Letter of Credit Security acceptable to NorthWestern in the amount set forth in Section 7.1 for a potential or actual default of this Agreement.

Default Security. Equal a dollar amount computed by the (annual on peak hours) multiplied by the (On Peak Price less Off Peak Price) multiplied by (Annual Net Energy Amount divided by 8,760) where the On Peak Price and Off Peak Price are the prices specified in the Schedule 85 option the Seller has selected in paragraph 7.1 of this Agreement

Default Security means the credit security provided by Seller to PacifiCorp pursuant to Article Four in order to secure Seller’s obligations hereunder.