Development Security Deposit. Seller shall provide a Development Security Deposit in the amount of $50 for each kilowatt of Capacity of the Facility to Buyer in the form of a cashier’s check on or prior to the Effective Date. After Seller achieves Commercial Operation, Seller shall submit a written request to the Buyer for the refund of the Development Security Deposit. ▇▇▇▇▇ will return the Development Security Deposit to Seller within thirty (30) days of receiving the written request. If the SOPPA Milestone is not met by the SOPPA Milestone Deadline or Commercial Operation does not occur by the Commercial Operation Deadline, Seller shall forfeit and Buyer shall retain the entire Development Security Deposit as liquidated damages. However, if failure to meet SOPPA Milestone Deadline or Commercial Operation is due to Force Majeure, Buyer will refund the Development Security Deposit. The Parties agree that it is impractical or extremely difficult to determine actual damages to which LADWP would be entitled if the SOPPA Milestone Deadline or Commercial Operation Deadline are not achieved, and the liquidated damages provided for in this Section 3.6 are a fair and reasonable calculation of actual damages to LADWP in such a circumstance.
Appears in 3 contracts
Sources: Power Purchase Agreement, Power Purchase Agreement, Power Purchase Agreement