Payment Security Fund Sample Clauses
The Payment Security Fund clause establishes a dedicated reserve or fund to ensure that payments owed under a contract are secured and available when due. Typically, this clause requires one or both parties to deposit a specified amount of money or provide a financial guarantee, such as a letter of credit or escrow arrangement, which can be drawn upon if payment obligations are not met. Its core practical function is to protect the receiving party from the risk of non-payment, thereby enhancing trust and financial security in the contractual relationship.
Payment Security Fund. In addition to provisions contained in Article 2.6 above, the Buying Entity shall provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing, of all the Projects tied up with such fund. The parties agree that proceeds of encashment of PBGs upon default of the SPD under the respective PPA shall be passed on to the Buying Utility subsequent to opening of the above Payment Security Fund. It is hereby clarified that the State Government guarantee shall be invoked only after the SECI has been unable to recover its dues under the PSA by means of the Letter of Credit and the Payment Security Fund.
Payment Security Fund. In addition to provisions contained in Article 6.4 (A) and 6.4. (B) Above, the Buying Utility may also choose to provide Payment Security Fund, not later than the commencement of supply of Power to the Buying Utility under this Agreement, which shall be suitable to support Payment of at least 3 (three) months’ billing of all the Projects tied up with such fund.
Payment Security Fund. In addition to provisions contained in Article 6.4 (a) and 6.4.9 above, the Buying Utility may also choose to provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing of all the Projects tied up with such fund. It is hereby clarified that the State Government guarantee shall be invoked only after the SECI has been unable to recover its dues under the PSA by means of the Letter of Credit and the Payment Security Fund.
Payment Security Fund. A payment Security Fund will be set up suitable to support payment for at least 3(three months) billing of project tied up with this fund
Payment Security Fund. In addition to provisions contained in Article 3(A) and (B) above, the Discoms shall provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing.
Payment Security Fund. In addition to provisions contained in Article 2.6 above, the Buying Entity may provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing, of all the Projects tied up with such fund. The parties agree that proceeds of encashment of PBGs upon default of the BESSD under the respective BESPA shall be passed on to the Buying Utility subsequent to opening of the above Payment Security Fund. It is hereby clarified that the State Government guarantee shall be invoked only after the SECI has been unable to recover its dues under the BESSA by means of the Letter of Credit and the Payment Security Fund as provided by buying entity.
Payment Security Fund. In addition to provisions of Letter of Credit, PSPCL shall provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing, of all the Projects tied up with such fund. It is hereby clarified that Payment Security Fund shall be drawn only after the SPD has been unable to recover its dues under the PPA by means of the Letter of Credit.
Payment Security Fund. 2.6.1 In addition to provisions contained in Article 2.5 above, the Procurer may provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing, of all the Projects tied up with such fund.
Payment Security Fund. (i) Not later than 15 (fifteen) Days prior to the date of issue of the Commissioning Certificate or the date of deemed issuance mentioned in the Confirmation Certificate for the Unit, RUMSL, on behalf of the Procurer shall set up or cause to be set up in favour of the SPD, in respect of payment of the Monthly Bills and/or Supplementary Bills, a payment security fund with a corpus of INR [insert tariff value equivalent to the Minimum Supply Obligation/4] in the form of an overdraft facility of the same size (Payment Security Fund), which may be drawn upon by the SPD in accordance with this Article. The Procurer and SPD shall cooperate with RUMSL to set up the Payment Security Fund by co-signing the documentation required, if any, for setting up the Payment Security Fund.
(ii) If, at any time, such Payment Security Fund falls short of the amount specified in Article 10.6(b)(i) on account of any reasons solely attributable to the Procurer, then the Procurer shall restore such shortfall within 15 (fifteen) Days.
(iii) All costs relating to the opening and maintaining of the Payment Security Fund, i.e., relating to opening of any account, instruments, administrative charges, fees and/or charges payable to a financial institution up to a maximum of 0.5% (zero point five percent) of the Payment Security Fund for each year shall be borne by RUMSL. The 0.5% (zero point five percent) limit on RUMSL‟s liability does not include the interest payable by RUMSL, if any in respect of drawls from the Payment Security Fund by the SPD. RUMSL shall make such interest payments irrespective of the above- mentioned limit. RUMSL shall get payments for delay from the Procurer in accordance with this Agreement. Provided that if such costs exceed 0.5% (zero point five percent) of the Payment Security Fund, then such costs shall be borne by the Procurer.
(iv) If any Monthly ▇▇▇▇ and/or Supplementary ▇▇▇▇ or part thereof is not paid to the SPD on or prior to the Due Date and the SPD fails to recover such payments due under the Monthly ▇▇▇▇ and/or Supplementary ▇▇▇▇ from the Letter of Credit, in accordance with Article 10.6(a), for any reason not attributable to the SPD, then the SPD may upon issuing a written notice of 15 (fifteen) Days to RUMSL draw upon the Payment Security Fund to recover all such amounts in full. The following documents shall be submitted by the SPD along with the notice:
(A) a copy of the Monthly ▇▇▇▇ and/or Supplementary ▇▇▇▇ which has remained unpaid to SPD;
(B...
Payment Security Fund. SECI may provide Payment Security Fund in place of Letter of Credit, which shall be suitable to support payment of at least 3 (three) months’ billing, of all the Projects tied up with such fund.