Common use of Delivery Term Security Clause in Contracts

Delivery Term Security. Pursuant to this Section 8.4(a)(iii) and prior to the Initial Delivery Date, Seller shall post Delivery Term Security in the amount equal to the sum of ▇▇▇▇-to-Market Value and Independent Amount of [insert amount; Independent Amount is applicable to Sellers and/or (their Guarantor’s) who are not rated or have a Credit Rating below BBB- or Baa3 by S&P and ▇▇▇▇▇’▇ respectively. This amount shall be calculated as five (5%) percent of the notional value of expected capacity payments under the Agreement.], and in the form of [specify cash, Letter of Credit or Guaranty] ; provided that, with Buyer’s consent, Seller may elect to apply the [Project Development Security for New Facilities][Pre-Delivery Term Security for Existing Facilities] posted pursuant to Section [8.4(a)(i) for New Facilities][(8.4(a)(ii) for Existing Facilities] toward the Delivery Term Security posted pursuant to this Section 8.4(a)(iii). Beginning on the Initial Delivery Date, and throughout the Delivery Term, Buyer shall act as the calculation agent and will calculate the ▇▇▇▇-to-Market Value according to the formula set forth in Appendix XXII for the remainder of the Delivery Term. Seller is required to meet the collateral requirement within three (3) Business Days of such Notice from Buyer. The Delivery Term Security shall be no less than zero and no more than ____dollars ($__.00) [Insert appropriate amount depending on type of facility: two hundred and fifty thousand dollars ($250,000.00) per MW for combined cycle facilities or one hundred and twenty-five thousand dollars ($125,000.00) per MW if the Unit is a peaker] for the Maximum Contract Capacity for all the Units.

Delivery Term Security. Pursuant to this Section 8.4(a)(iii) and prior to the Initial Delivery Date, Seller shall post Delivery Term Security in the amount equal to the sum of ▇▇▇▇-toMark-to-Market Value and Independent Amount of [insert amount; Independent Amount is applicable to Sellers and/or (their Guarantor’s) who are not rated or have a Credit Rating below BBB- or Baa3 by S&P and ▇▇▇▇▇’▇ Moody’s respectively. This amount shall be calculated as five (5%) percent of the notional value of expected capacity payments under the Agreement.], and in the form of [specify cash, Letter of Credit or Guaranty] ; provided that, with Buyer’s consent, Seller may elect to apply the [Project Development Security for New Facilities][Pre-Delivery Term Security for Existing Facilities] posted pursuant to Section [8.4(a)(i) for New Facilities][(8.4(a)(ii) for Existing Facilities] toward the Delivery Term Security posted pursuant to this Section 8.4(a)(iii). . (A) Beginning on the Initial Delivery Date, and throughout the Delivery Term, Buyer shall act as the calculation agent and will calculate the ▇▇▇▇-to▇ will calculate the Mark-to-Market Value according to the formula set forth in Appendix XXII for the remainder of the Delivery Term. . (B) If Seller’s or Seller’s Guarantor has a Credit Rating at or above BBB- or Baa3 by S&P and Moody’s, respectively, the Independent Amount is $0. (C) If Seller’s or Seller’s Guarantor has a Credit Rating below BBB- or Baa3 by S&P and Moody’s, respectively, the Independent Amount is five (5%) percent of the notional value of expected capacity payments remaining under the Agreement. (D) Seller is required to shall meet the collateral requirement within three (3) Business Days of such Notice from Buyer. . (E) The Delivery Term Security shall be no less than zero and no more than ____dollars ($__$ .00) [Insert appropriate amount depending on type of facility: two hundred and fifty thousand dollars ($250,000.00) per MW for combined cycle facilities or one hundred and twenty-five thousand dollars ($125,000.00) per MW if the Unit is a peaker] for the Maximum Contract Capacity for all the Units.: