Common use of Payment Security Clause in Contracts

Payment Security. 12.1.1 The Aggregator shall, no later than 30 (thirty) days prior to the likely date of the Appointed Date, provide to the Supplier, an unconditional, revolving and irrevocable letter of credit with for an amount equivalent to 20% (twenty percent) of the annual Capacity Charge (the “Letter of Credit”), which may be drawn upon by the Supplier for recovery of payment due against the Monthly Invoice in accordance with the provisions of this Agreement. The Letter of Credit shall be substantially in the form specified in Schedule-C and shall come into effect on the Appointed Date, and shall be modified once every year to reflect the revision in 20% (twenty percent) of the annual Capacity Charge in accordance with the provisions of this Agreement.

Payment Security. 12.1.1 The Aggregator Utility shall, no later than 30 (thirty) days prior to the likely date of the Appointed Date, provide to the SupplierAggregator, an unconditional, revolving and irrevocable letter of credit with for an amount equivalent to 20% (twenty percent) of the annual Capacity Charge (the “Letter of Credit”), which may be drawn upon by the Supplier Aggregator for recovery of payment due against the Monthly Invoice in accordance with the provisions of this Agreement. The Letter of Credit shall be substantially in the form specified in Schedule-C B and shall come into effect on the Appointed Date, and shall be modified once every year to reflect the revision in 20% (twenty percent) of the annual Capacity Charge in accordance with the provisions of this Agreement.