Common use of Payment Security Fund Clause in Contracts

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. In addition to provisions contained in Article 6.4 (a) and 6.4.9 2.6 above, the Buying Utility may also choose to Entity shall provide Payment Security Fund, which shall be suitable to support payment of at least 3 (three) months’ billing 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.