Guaranty Cap definition
Examples of Guaranty Cap in a sentence
Conversely, if, during the term of this Agreement, the Credit Rating of the Provider Guarantor is upgraded, then the Guaranty Cap and the Base Security amounts applicable to the Provider shall be those reflecting the improved Credit Rating.
To the extent that the applicable Guaranty Cap is greater than the Current Security amount, but less than the Excess Market Exposure Security amount plus the Current Security amount, then the Provider may increase the corporate guaranty to the Guaranty Cap amount, and furnish a letter of credit or cash to secure the amount that the Excess Market Exposure Security amount plus the Current Security amount exceeds the Guaranty Cap amount.
If the Provider Guarantor’s Credit Rating improves so that a higher Guaranty Cap applies to the Provider’s Guarantor, then the T&D shall return a portion of the Provider Guarantor’s security equal to the amount of the associated increase in the Guaranty Cap within three (3) Business Days of Provider’s request for the return of such security and Provider’s provision of a guaranty by Provider Guarantor for the amount of security to be returned by the T&D.
Subject to the Guaranty Cap set forth in Section 2 of this Guaranty, the Guarantor agrees, that upon the failure of the Company to pay any of the Obligations when they become due, the Guarantor will pay, or cause to be paid, to Guaranteed Party any and all such unpaid Obligations.
The Guaranty Cap shall not be reduced as a result of any amounts paid under this Section 1.14 and the obligations under this Section 1.14 shall constitute a component of the “Guaranteed Obligations” hereunder.
To the extent that the applicable Guaranty Cap is greater than the Base Security amount, but less than the Excess Market Exposure Security amount plus the Base Security amount, then the Provider may increase the corporate guaranty to the Guaranty Cap amount, and furnish a letter of credit or cash to secure the amount that the Excess Market Exposure Security amount plus the Base Security amount exceeds the Guaranty Cap amount.
Each reduction in the Guaranty Cap shall be automatic and without further action on the part of any Person (as such term is defined in the PPA).
Expenses of enforcement as provided in Section 5 of this Guaranty shall not be considered a part of or subject to the Guaranty Cap.
If for any reason Seller shall fail or be unable duly and punctually to pay any Guarantied Obligation as and when the same shall become due, then the Guarantor shall, subject to the terms and conditions of this Agreement, forthwith duly and punctually pay such Guarantied Obligation, subject to the Guaranty Cap.
Section 2.1 Subject to the terms hereof, the Guarantor hereby unconditionally and irrevocably undertakes, as primary obligor and not merely as a surety, for the benefit of the Beneficiary to pay to the Administrative Agent, on first demand in the form of a Notice of Payment, the amount specified in such Notice of Payment, but in no event exceeding the Guaranty Cap.