Common use of Acceptable Security Clause in Contracts

Acceptable Security. 10.1.1 The Reservation Party shall provide NGG with Acceptable Security for the PARCA Security Amount on and from the dates specified in accordance with the Phase I PARCA Works Report or as otherwise required under this Agreement. 10.1.2 Subject to the following provisions of this Clause 10 the Reservation Party may elect which form of Acceptable Security it wishes to provide in respect of the PARCA Security Amount and shall be entitled to provide a combination of any forms of Acceptable Security (as long as the PARCA Security Amount is covered at all times). 10.1.3 A Reservation Party may change its election of the form of Acceptable Security on giving not less than thirty (30) days notice to NGG provided that the original Acceptable Security covers the PARCA Security Amount at all times until it has been replaced by an alternative Acceptable Security in accordance with this Agreement. Once the original Acceptable Security has been replaced by the requested alternative Acceptable Security, if applicable, NGG shall return the original Acceptable Security within ten (10) Business Days. NGG will not be obliged to agree to any request of the Reservation Party under this Clause 10 unless the Reservation Party agrees to reimburse NGG the reasonable costs and fees incurred by NGG in connection with such request. 10.1.4 If at any time the person providing Acceptable Security for the Reservation Party or such person’s sovereign (as applicable) ceases to have at least the Required Credit Rating, NGG will notify the Reservation Party. Such notice may specify that the Reservation Party is required to provide alternative surety or security. 10.1.5 In the event the Reservation Party fails to provide NGG with Acceptable Security in accordance with Clauses 10.1.1,10.1.6, 10.2.2, or 10.3.2 or such security ceases to be valid, binding on and Enforceable against the Reservation Party NGG may terminate this Agreement with immediate effect. 10.1.6 Where NGG requires the Reservation Party to provide alternative surety or security pursuant to Clause 10.1.4, the Reservation Party shall provide to NGG, by no later than 17.00 on the second (2nd) Business Day following the date of such notice, with alternative Acceptable Security for such an amount that results in the whole of the PARCA Security Amount being covered.

Acceptable Security. 10.1.1 The Reservation Party shall provide NGG with Acceptable Security for the PARCA Security Amount on and from the dates specified in accordance with the Phase I PARCA Works Report or as otherwise required under this Agreement. 10.1.2 Subject to the following provisions of this Clause 10 the Reservation Party may elect which form of Acceptable Security it wishes to provide in respect of the PARCA Security Amount and shall be entitled to provide a combination of any forms of Acceptable Security (as long as the PARCA Security Amount is covered at all times). 10.1.3 A Reservation Party may change its election of the form of Acceptable Security on giving not less than thirty (30) days notice to NGG provided that the original Acceptable Security covers the PARCA Security Amount at all times until it has been replaced by an alternative Acceptable Security in accordance with this Agreementtimes. Once the original Acceptable Security has been replaced by the requested alternative Acceptable Security, if applicable, NGG shall return the original Acceptable Security within ten (10) Business Days. NGG will not be obliged to agree to any request of the Reservation Party under this Clause 10 unless the Reservation Party agrees to reimburse NGG the reasonable costs and fees incurred by NGG in connection with such request. 10.1.4 If at any time the person providing Acceptable Security for the Reservation Party or such person’s sovereign (as applicable) ceases to have at least the Required Credit Rating, NGG will notify the Reservation Party. Such notice may specify that the Reservation Party is required to provide alternative additional surety or security. 10.1.5 In the event the Reservation Party fails to provide NGG with Acceptable Security in accordance with Clauses 10.1.1,10.1.6, 10.2.2, or 10.3.2 or such security ceases to be valid, binding on and Enforceable against the Reservation Party NGG may terminate this Agreement with immediate effect. 10.1.6 Where NGG requires the Reservation Party to provide alternative additional surety or security security, pursuant to Clause 10.1.4, the Reservation Party shall provide to NGG, by no later than 17.00 on the second (2nd) Business Day following the date of such notice, with alternative additional Acceptable Security for such an amount that results in the whole of the PARCA Security Amount being covered. <#>[Credit provisions in relation to Acceptable Security to be determined further by National Grid]¶ 10.1.6 In the event the Reservation Party fails to provide NGG with Acceptable Security in accordance with Clauses 3, 4, 10.1.1, 10.1.5, 10.2.3 or 10.3.3 or such security ceases to be valid, binding on and enforceable against the Reservation Party NGG may terminate this Agreement with immediate effect.