Common use of Payment Security Mechanism Clause in Contracts

Payment Security Mechanism. 15.8.1. In order to assure payment of the Authority‟s obligation to the Concessionaire under this Agreement, the Authority shall, prior to the COD, establish with ..................11 (“Account Bank”) a no lien bank account with revolving cash- credit limit of a sum equivalent to 1.5 (one and half) months of estimated annual Storage Charges as applicable for the relevant Financial Year and authorise the Account Bank to issue payment to the Concessionaire for unpaid Undisputed Amounts of Invoices raised by the Concessionaire in respect of the Project built under this Agreement. 11 A scheduled commercial Bank which is agreeable to extend such facility to the Authority

Payment Security Mechanism. 15.8.1. In order to assure payment of the Authority‟s Authority’s obligation to the Concessionaire under this Agreement, the Authority shall, prior to the COD, establish with ..................11 14 (“Account Bank”) a no lien bank account with revolving cash- credit limit of a sum equivalent to 1.5 (one and half) months of estimated annual Storage Charges as applicable for the relevant Financial Year and authorise the Account Bank to issue payment to the Concessionaire for unpaid Undisputed Amounts of Invoices raised by the Concessionaire in respect of the Project built under this Agreement. 11 14 A scheduled commercial Bank which is agreeable to extend such facility to the Authority