Common use of Replacement Bonds Clause in Contracts

Replacement Bonds. The Purchaser acknowledges that none of the Credit Support Instruments posted by the Seller or any of its Affiliates will be transferred to the Purchaser. At or prior to the Closing, the Purchaser, at the Purchaser’s sole cost and expense, shall use commercially reasonable efforts to deliver to the Seller evidence of the posting of replacements for all such Credit Support Instruments to the extent such replacements are necessary to permit the cancellation of the Credit Support Instruments posted by the Seller or its Affiliates and the Seller shall reasonably cooperate with the Purchaser’s efforts in this respect. Effective upon the Closing, the Purchaser and the Guarantor, jointly and severally, shall defend, indemnify, and hold harmless the Seller Indemnitees from and against any and all Losses arising out of, attributable to, based upon, or related to the Purchaser’s failure to either (x) replace Credit Support Instruments in accordance with this Section 4.13, and (y) upon expiration of the period in the previous sentence, have all Credit Support Instruments posted by the Seller or its Affiliates released.