Common use of Acceptable Encumbrances Clause in Contracts

Acceptable Encumbrances. A Transmission Owner that has issued Local Furnishing Bonds may become a Participating TO under Section 2.2 even though covenants or restrictions applicable to the Transmission Owner’s Local Furnishing Bonds require the ISO’s Operational Control to be exercised subject to Encumbrances, provided that such Encumbrances do not materially impair the ISO’s ability to meet its obligations under the ISO Tariff or the Transmission Owner’s ability to comply with the TO Tariff.

Acceptable Encumbrances. A Transmission Owner that has issued Local Furnishing Bonds may become a Participating TO under Section 2.2 even though covenants or restrictions applicable to the Transmission Owner’s 's Local Furnishing Bonds require the ISO’s 's Operational Control to be exercised subject to Encumbrances, provided that such Encumbrances do not materially impair the ISO’s 's ability to meet its obligations under the ISO Tariff or the Transmission Owner’s 's ability to comply with the TO Tariff.