Payment Security Clause Samples

Payment Security. To secure all of CAISO’s payment obligations to Owner under this Agreement, CAISO agrees to grant Owner a security interest and lien in the following collateral (collectively, the “Collateral”): (a) all past, present and future accounts and other amounts Responsible Utility owes CAISO at any time pursuant to Section 41 of the CAISO Tariff attributable to invoices submitted by Owner under this Agreement (collectively, the “Accounts”), (b) the RMR Owner Facility Trust Account, all funds in the RMR Owner Facility Trust Account at any time, and all funds paid on account of any Accounts, (c) all proceeds of the Collateral, if any, and (d) all of CAISO’s right, title and interest in the Collateral. CAISO represents and warrants to Owner that (a) CAISO has the authority to grant such security interest, (b) CAISO will have good, marketable and exclusive title to all of the Collateral, (c) such security interest and lien will at all times be a valid, enforceable and first-priority lien on the Collateral, and (d) such security interest will be duly perfected by the filing of a financing statement under the California Uniform Commercial Code describing the Collateral in the office of the Secretary of State of California and the delivery of a written notice of Owner’s security interest to the bank with which the RMR Owner Facility Trust Account is maintained. If CAISO defaults on its obligation to pay under this Agreement, Owner shall be entitled to enforce such securityinterest, to exercise its rights in the Collateral, to collect the Accounts from Responsible Utility, to collect all funds in the RMR Owner Facility Trust Account, and to exercise all other rights and remedies under the California Uniform Commercial Code. CAISO agrees to promptly execute and deliver all financing statements and other documents Owner reasonably requests, including but not limited to a written notice of Owner’s security interest in the Collateral to the bank with which the RMR Owner Facility Trust Account is maintained, in order to maintain, perfect and enforce such security interest.

Payment Security. 11.1. The Buyer shall provide to each of the Sellers (value split based on Participating Interest) as security for its payment obligations hereunder an irrevocable, unconditional, on demand Bank Guarantee from a bank included in the list provided in Annexure – 6, in favour of the Sellers, for an amount specified in Clause 11.2 below, in a form provided at Annexure 5. Original Bank Guarantee along with the copy of SFMS confirmation to be submitted on or before 18th March 2024 and shall be valid up to 30th June 2025. Bank Guarantee in favour of Vedanta, ONGC and IPL shall be in INR. 11.2. The amount of the Bank Guarantee to be provided and maintained under Clause 11.1 above shall be for thirty-one (31) Days equivalent Gas supplies to Buyer and shall be determined as follows: 11.3. Bank Guarantee amount (in United States Dollar) = 110% * [(Awarded Sales Gas Quantity (in scm) * 9,700 kcal/scm/ 252,000) MMBTU] * [Sales Gas Price (plus applicable VAT rate)] * [31 days]. The INR/USD exchange rate to be used for purpose of calculating the Bank Guarantee amount in INR for Seller shall be the rate published by Financial Benchmarks India Private Limited on the first day of the month in which the Bank Guarantee is issued. The Sales Gas Price to be considered for this Bank Guarantee shall be the simple average of Sales Gas Price for preceding three (3) Months period from the Month in which the Bank Guarantee is issued. 11.4. Upon expiry of the Agreement and ascertainment of no dues, Bank Guarantee shall be returned to the Buyer within 7 days after receipt of C Form (if applicable) against the invoices raised during the Term of the Agreement. 11.5. The Sellers shall have the right to invoke, in part or in full, the respective Bank Guarantee on account of a failure of the Buyer in meeting its payment obligations under this Agreement.

Payment Security. The Retailer may require that the Customer provide the Retailer with adequate security against the Customer’s future gas bills before connection to supply or continuation of supply. The payment security is applicable where the Customer is: a) new to a supply address and do not have a satisfactory established account payment record in the same name at another supply address; or b) new to a supply address and do not have an acceptable credit reference; or c) gas has been turned off in accordance with clause 10. The Customer may elect to provide the security as either: (i) A payment deduction authority for the Retailer to deduct payment for bills from a nominated credit card or bank account; or (ii) Refundable advance (refer clause 12); or (iii) Other payment arrangement agreed by the Retailer.

Payment Security per week or part thereof. GUVNL shall provide an Irrevocable and unconditional revolving Letter of Credit in favour of, and for the sole benefit of the Power Producer for the contracted capacity. All the cost incurred by GUVNL for opening, maintenance and other cost related to establishment of Letter of Credit shall be borne by the Power Producer. 1) The Letter of Credit shall be established in favour of, and issued to, the Power Producer on the date hereof and made operational thirty (30) days prior to due date of first invoice and shall be maintained consistent herewith by GUVNL and all times during the Term of the Agreement. 2) Such Letter of Credit shall be in form and substance acceptable to both the Parties and shall be issued by any Scheduled Bank and be provided on the basis that: (i) In the event a Tariff Invoice or any other amount due and undisputed amount payable by GUVNL pursuant to the terms of this Agreement is not paid in full by GUVNL as and when due, the Letter of Credit may be called by the Power Producer for payment of undisputed amount. (ii) The amount of the Letter of Credit shall be be equal to an amount not less than one month’s average billing of the Project. (iii) The GUVNL shall replenish the Letter of Credit to bring it to the original amount within 30 days in case of any valid drawdown. 3) The Letter of Credit shall be renewed and/or replaced by the GUVNL not less than 30 days prior to its expiration. 4) Payment under the Letter of Credit : The drawl under the Letter of Credit in respect of a Tariff Invoice (excluding supplementary bills) shall require: (i) a copy of the metering statement jointly signed by the official representatives of both the Parties, supporting the payments attributable to the Delivered Energy in respect of such Tariff Invoice. (ii) a certificate from the Power Producer stating that the amount payable by GUVNL in respect of such Tariff Invoice has not been paid and disputed by GUVNL till the Due Date of Payment of the Tariff Invoice.

Payment Security. 9.4.1 MSEDCL shall provide to the SPV, in respect of payment of its Bills and/or Supplementary Bills, a monthly unconditional, revolving and irrevocable letter of credit (“Letter of Credit”), opened and maintained which may be drawn upon by the SPV in accordance with this Article 9. 9.4.2 Not later than 1 (one) month prior to the Scheduled Commercial Operation Date, MSEDCL shall through a scheduled bank open a Letter of Credit in favour of the SPV, to be made operative from a date prior to the Due Date of Payment of its first Monthly Bill under this PPA post the Scheduled Commercial Operation Date. The Letter of Credit shall have a term of 12 (twelve) months and shall be renewed annually, for an amount equal to: (a) for the first Contract Year, equal to the estimated average monthly billing for the relevant Units; (b) for each subsequent Contract Year, equal to the average of the monthly billing of the previous Contract Year for the relevant Units. Provided that the SPV shall not draw upon such Letter of Credit prior to achievement of Commercial Operation Date for the entire Project. The SPV shall also not be permitted to draw upon such Letter of Credit prior to the Due Date of Payment of the relevant Bill and/or Supplementary Bill, and shall not make more than one drawal in a month. Provided further that if at any time, such Letter of Credit amount falls short of the amount specified hereinabove due to any reason whatsoever, MSEDCL shall restore such shortfall within 15 (fifteen) days. 9.4.3 MSEDCL shall cause the scheduled bank issuing the Letter of Credit to intimate the SPV, in writing regarding establishing of such irrevocable Letter of Credit. 9.4.4 MSEDCL shall ensure that the Letter of Credit shall be renewed not later than its expiry. 9.4.5 All costs relating to opening, maintenance of the Letter of Credit shall be borne by MSEDCL. 9.4.6 If MSEDCL fails to pay undisputed Bill or Supplementary Bill or a part thereof within and including the Due Date of Payment, then, subject to Article 9.4.4 and 9.5.2, the SPV may draw upon the Letter of Credit, and accordingly the bank shall pay without any reference or instructions from MSEDCL, an amount equal to such Monthly Bill or Supplementary Bill or part thereof, in accordance with Article 9.4.2 above, by presenting to the scheduled bank issuing the Letter of Credit, the following documents: (a) a copy of the Monthly Bill or Supplementary Bill which has remained unpaid to SPV; and (b) a certificate from the...

Payment Security. 13.1 Non- PSU Buyer shall give a security deposit in the form of bank guarantee from Nationalized/Scheduled Commercial Bank (as per format provided in SCHEDULE- E of the COSA) within 15 days from the Date of NOA with a validity of Date of NoA plus 90 days, so as to cover the security of payment against the crude oil supply. The value of this Bank guarantee would be for the value of 1 Lot as per quantity in the Notice of Award . This amount would be calculated considering the crude oil price construct as at Sl. 9 of Schedule G. The applicable Benchmark Crude Oil Price and Exchange Rate would be the average rate for the month preceding the month in which NOA is awarded. 13.2 For subsequent NoAs as and when a tradeable parcel is available will be awarded as per Article 6, ▇▇▇▇▇ has to give security deposit as per article 13.1 if applicable.

Payment Security. 11.1 The Security Deposit submitted as part of the RFP no. RFP/RJ-ON-90/1/2023/3 will be used as Payment Security Bank Guarantee for the Buyer’s payment obligations under this Agreement. 11.2 The Sellers shall have the right to invoke, in part or in full, the Payment Security Bank Guarantee on account of a failure of the Buyer in meeting its payment obligations under this Agreement.

Payment Security. Provision of SERVICE is contingent on credit approval by Sprint. Upon request by Sprint, Customer shall provide Sprint with financial statements or other indications of Customer's financial and business circumstances. If Customer's financial or business circumstances or payment history is or, during the TERM, becomes unacceptable to Sprint, then Sprint may require a deposit, irrevocable letter of credit or other form of security acceptable to Sprint. Customer's failure to provide such security within 15 days following Sprint's reasonable request shall constitute a default under Subparagraph 4.2.

Payment Security. Prior to the commencement of this Permit, the Permittee shall provide the County with a cash deposit, an irrevocable letter of credit, or other form of security acceptable to MDAD and so endorsed as to be readily negotiable by the County, as security for the payments required hereunder, in the amount of not less than $1,000.00, or such other amount as may be directed from time to time by MDAD, plus any applicable State sales taxes applicable to the security deposit as may be required by law. Following the commencement of commercial activities hereunder, the amount of such payment security may be increased annually or periodically as MDAD determines, to an amount equal to three times the average monthly payment made by the Permittee in the prior year or in the prior period. Such payment security, as adjusted from time to time, shall be kept in full force throughout the term of this Permit. MDAD may draw upon such payment security cash or instrument if the Permittee fails to pay the fees and charges required to be paid under this Permit within the time or times required herein for such payment.