Project Credit Support Sample Clauses
The PROJECT CREDIT SUPPORT clause establishes the requirement for financial backing or guarantees to support a project's obligations. Typically, this involves the provision of instruments such as letters of credit, parent company guarantees, or performance bonds by one or more parties involved in the project. These forms of credit support ensure that, in the event of default or non-performance, there are sufficient financial resources available to cover losses or fulfill contractual commitments. The core function of this clause is to mitigate financial risk and provide assurance to stakeholders that the project's obligations will be met even if unforeseen issues arise.
Project Credit Support. Capital Members and their Affiliates may, from time to time, to the extent requested by the Board, provide credit support for or on behalf of the Company and its Subsidiaries to support their respective obligations to third parties in connection with the development, construction, financing and operation of the Red River Project, Supply Company, Five Forks, the Vortex Project and ACS Land Company, in each case in the form (e.g., letters of credit, cash deposits) and amount as determined by the Board and such Capital Member. Unless otherwise agreed in writing among the Capital Members, any such credit support shall be provided by the ADA-ES Side, on the one hand, and the ECP Side, on the other hand, based on their respective Capital Percentage Interests. With respect to the letters of credit required by Section 2.1.4 of the EPC Contract, as supplemented by the Second Letter Agreement, dated as of September 30, 2008, the ECP Members shall not be obligated to: (a) increase the stated amount of such letter of credit or extend the maturity date thereof at any time or (b) replenish the stated amount of any such letter of credit to the extent drawn.
Project Credit Support. Members and their Affiliates may, from time to time, to the extent requested by the Board, provide credit support for or on behalf of the Company and its Subsidiaries to support their respective obligations to third parties in connection with the development, construction, financing and operation of the Red River Project, in each case in the form (e.g., letters of credit, cash deposits) and amount as determined by the Board and such Member. Unless otherwise agreed in writing among the Members, any such credit support shall be provided by the ADA-ES Side, on the one hand, and the ECP Side, on the other hand, based on their respective Percentage Interests. With respect to the letters of credit required by Section 2.1.4 of the EPC Contract, as supplemented by the Second Letter Agreement, dated as of September 30, 2008, (i) ADA-ES shall at all times maintain, or cause to be maintained, letters of credit as necessary to cover $6,600,000 of the stated amount of such required letters of credit until such time as ADA-ES is required to make Capital Contributions pursuant to Section 3.3(c)(ii), and (ii) subject to clauses (ii) and (iii) of the Funding Conditions and compliance with Section 2.1(b) of the Reimbursement Agreement, the ECP Members shall cause the aggregate stated amount of such letters of credit to equal the amount from time to time set forth in the table below, less, during any period in which the ADA-ES letter of credit referred to above is required to be issued in accordance with this Section, $6,600,000; provided that the ECP Members shall not be obligated to: (a) increase the stated amount of such letter of credit or extend the maturity date thereof at any time on or after the occurrence of an ADA-ES Triggering Event or a Material Default by ADA-ES or at any time during which a default or event of default has occurred and is continuing under the Effective Date Credit Support Documents; (b) replenish the stated amount of any such letter of credit to the extent drawn; or (c) increase the stated amount of any such letter of credit or extend the maturity date thereof at any time on or after February 28, 2009. October 1, 2008 to October 30, 2008 $ 15,710,000.00 November 1, 2008 to November 30, 2008 $ 19,280,000.00 December 1, 2008 to December 31, 2009 $ 16,040,000.00 January 1, 2009 to January 31, 2009 $ 17,670,000.00 February 1, 2009 and thereafter $ 21,350,000.00
Project Credit Support. Lessee shall provide and maintain all credit support required under the Project Documents and the Project Governmental Approvals to the extent not required nor elected to be provided and maintained by Lessor pursuant to Section 8.3(c); provided, however, that in no event shall Lessee be required to fund or pay any debt owing by Lessor to a Financing Party.
Project Credit Support. Beginning on the Effective Date and throughout the remainder of the Lease Term, and subject to the last sentence of this Section 8.3(c), (i) Lessor shall provide and maintain all credit support required under the Assigned Project Documents and the Assigned Project Governmental Approvals and (ii) Lessor shall have the option (but not the obligation) to provide and maintain any credit support required of Lessee or its Affiliates under any of the other Project Documents or Project Governmental Approvals on behalf of Lessee or its Affiliates. Notwithstanding the foregoing, Lessee shall pay the actual costs incurred by Lessor to provide and maintain any credit support required of Lessee or its Affiliates pursuant to the Project Documents or the Project Governmental Approvals.
Project Credit Support