Duty to Post Default Security Clause Samples
The "Duty to Post Default Security" clause requires a party, typically the defaulting party, to provide a form of financial security or collateral after a default event has occurred. In practice, this may involve the posting of a bond, letter of credit, or other acceptable security to cover potential losses or obligations arising from the default. This clause ensures that the non-defaulting party has a financial safeguard in place, thereby mitigating risk and providing assurance that any damages or outstanding obligations will be covered in the event of a default.
Duty to Post Default Security. Beginning on the date specified in Section 2.3(b), at any time during the Term when Seller does not satisfy the Credit Requirements, Seller shall post and maintain in favor of PacifiCorp (a) a guaranty from an entity that satisfies the Credit Requirements, in substantially the form attached hereto as Exhibit 8.2.1, or (b) a Letter of Credit (the "Default Security"), as provided in this Section 8.2. In the event Seller posts Default Security and thereafter satisfies the Credit Requirements, as demonstrated to the reasonable satisfaction of PacifiCorp, then Seller shall be entitled to a release by PacifiCorp of the Default Security for so long as Seller continues to satisfy the Credit Requirements. Seller and any party providing a guaranty for Seller shall provide within five Business Days from receipt of a written request from PacifiCorp all reasonable financial records necessary for PacifiCorp to confirm Seller and/or the guarantor satisfies the Credit Requirements.
Duty to Post Default Security. On the date specified in Section 2.3(b), Seller shall post and maintain in favor of PacifiCorp (a) a guaranty from an entity that satisfies the Credit Requirements, in substantially the form attached hereto as Exhibit D, or (b) a Letter of Credit, each in the amount specified in Section 8.2.1 (the “Default Security”), as provided in this Section 8.2. Seller and any entity providing a guaranty shall provide within five (5) Business Days from receipt of a written request from PacifiCorp all reasonable financial records necessary for PacifiCorp to confirm the guarantor satisfies the Credit Requirements.
Duty to Post Default Security. Beginning on the Commercial Operation Date, at any time during the Term when Seller does not satisfy the Credit Requirement, Seller shall post and maintain in favor of PacifiCorp (a) a guaranty from an entity that satisfies the Credit Requirement, in a form acceptable to PacifiCorp in its reasonable discretion, or (b) a Letter of Credit (the “Default Security”), as provided in this Section 7.2. In the event Seller posts Default Security and thereafter satisfies the Credit Requirement, as demonstrated to the reasonable satisfaction of PacifiCorp, then Seller shall be entitled to a release by PacifiCorp of the Default Security for so long as Seller continues to satisfy the Credit Requirement.
Duty to Post Default Security. At any time during the Term when Seller does not satisfy the Credit Requirements, Seller shall post and maintain in favor of PacifiCorp (a) a guaranty from a party that satisfies the Credit Requirements, in a form acceptable to PacifiCorp in its discretion, (b) a Letter of Credit, or (c) a Cash Escrow (the “Default Security”) as provided in this Section 8.2.