Permitted Commodity Agreement definition
Permitted Commodity Agreement means a Commodity Hedge and Power Sales Agreement entered into by a Loan Party (a) to sell, purchase or hedge the price of energy, ancillary services, capacity or other commodity in the ordinary course of business and not for speculative purposes; provided, that for the avoidance of doubt, a Loan Party may commit to sell energy or capacity from its Project in a net amount greater than the capacity of such Project if the excess amount is capable of being provided by another Project and the relevant other Loan Party so commits to provide such excess amount, (b) that is entered into in the best interests of, and on terms fair and reasonable to, the applicable Loan Party and that, to the extent such agreement is a Secured Commodity Hedge and Power Sales Agreement (as such term is defined in the Intercreditor Agreement), is entered into with a Permitted Hedge Counterparty, (c) with respect to any such agreement entered into with Bolt Energy Marketing under which the required settlement of payments occurs less frequently than monthly, so long as Bolt Energy Marketing has (i) executed and delivered (and maintained in full force and effect) a credit support annex in connection with such Permitted Commodity Agreement that provides for a collateral posting threshold of not greater than $500,000 and (ii) as of any Business Day on which such Permitted Commodity Agreement remains in effect, posted Acceptable Credit Support, (d) with respect to physical sales of energy or capacity, commits the applicable Loan Party to no more than the reasonably expected uncommitted available output on a net basis (based on physical and economic input availability and output) of energy or capacity stored by a Project, or if such sale is not specific to a single Project, the Projects and the Project (as defined in the LeConte Credit Agreement), taken as a whole (taking into account all Permitted Commodity Agreements then in effect in respect of such Project, or if such sale is not specific to a single Project, the Projects and the Project (as defined in the LeConte Credit Agreement), taken a whole), (e) does not create, permit or suffer to exist any Lien other than Permitted Liens and (f) would not reasonably be expected to have a Material Adverse Effect.
Examples of Permitted Commodity Agreement in a sentence
For the avoidance of doubt, an Obligor Party may enter into any agreement (including, but not limited to, any guarantee, credit sleeve or similar agreement) providing credit support for any Permitted Commodity Agreement entered into in accordance with the terms hereof.
For the avoidance of doubt, a Loan Party may enter into any agreement (including, but not limited to, any guarantee, credit sleeve or similar agreement) providing credit support for any Permitted Commodity Agreement entered into in accordance with the terms hereof.