Common use of Operating Deposit Clause in Contracts

Operating Deposit. (a) The Parties recognize that the Operating Agent may be obligated to make payments of Operating Costs before it receives the monthly payments from the Lessee/Owner Parties. To provide cash flow to enable the Operating Agent to pay such costs, each Lessee/Owner Party shall maintain with the Operating Agent an operating deposit equal to 50% of the amount of its current invoice for Operating Costs. Each monthly invoice, commencing with the second, shall reflect an adjustment (payment amount or credit) equal to the difference between the Lessee/Owner Party’s current operating deposit obligation, and its balance after the preceding deposit. (b) The operating deposit percentage set forth in Section 10.2(a) shall be reassessed and adjusted, if appropriate, based upon actual experience after the first two years of commercial operation of Elm Road Unit 2 as part of each audit performed pursuant to Section 4.4(b).

Operating Deposit. (a) The Parties recognize that the Operating Agent may be obligated to make payments of Operating Costs before it receives the monthly payments from the Lessee/Owner Parties. To provide cash flow to enable the Operating Agent to pay such costs, each Lessee/Owner Party shall maintain with the Operating Agent an operating deposit equal to 50% of the amount of its current invoice for Operating Costs. Each monthly invoice, commencing with the second, shall reflect an adjustment (payment amount or credit) equal to the difference between the Lessee/Owner Party’s current operating deposit obligation, and its balance after the preceding deposit. (b) The operating deposit percentage set forth in Section 10.2(a) shall be reassessed and adjusted, if appropriate, based upon actual experience after the first two years of commercial operation of Elm Road Unit 2 1 as part of each audit performed pursuant to Section 4.4(b).