Security for Charges* Clause Samples
Security for Charges*. (a) Subject to clause 9(b), if Western Power* determines at any time during the Term* that either or both of the User*'s or the Indemnifier*'s technical or financial resources are such that a Reasonable and Prudent Person* would consider there to be a material risk that the User* will be unable to meet its obligations under this Contract*, then Western Power* may require the User* to nominate which of the User* or the Indemnifier (“Nominated Person*”) is to provide the following security, and then require the Nominated Person*, at the User*'s election to:
(i) pay a cash deposit equal to the Charges* for two months’ services; or
(ii) provide an irrevocable and unconditional bank guarantee or equivalent financial instrument in terms acceptable to Western Power* (acting as a Reasonable and Prudent Person*), guaranteeing or otherwise securing the Charges* for two months’ services; or
(iii) if Western Power* is satisfied, as a Reasonable and Prudent Person*, that the User*’s parent company’s financial and technical resources are such that the User’s* parent company would be able to meet the User*’s obligations under this Contract* (including because the User*’s parent company meets at least one of the credit ratings given in clauses 9(b)(i) and 9(b)(ii)), procure from the User*’s parent company a guarantee substantially in the form set out in Schedule 8.
(b) If the User* or the Indemnifier* has an unqualified credit rating of at least:
(i) BBB from Standard and Poor’s Australia Pty Ltd; or
(ii) Baa from ▇▇▇▇▇’▇ Investor Service Pty Ltd, and provides evidence to this effect to Western Power*, then Western Power* is not entitled to determine under clause 9(a) that the User*'s financial resources are such that there would be a material risk that the User* will be unable to meet its obligations under this Contract*.
Security for Charges*. (a) Subject to clause 9(b), if Western Power* determines at any time during the Term* that either or both of the User*'s or the Indemnifier*'s technical or financial resources are such that a Reasonable and Prudent Person* would consider there to be a material risk that the User* will be unable to meet its obligations under this Contract*, then:
(i) Western Power* may require the User* to within 15 Business Days* nominate which of the User* or the Indemnifier* (“Nominated Person*”) is to provide the following security;, and
(i) (ii) within 15 Business Days* of the User*’s nomination under clause 9(a)(i), then require the Nominated Person*, at the User*'s election, must eitherto: DM 8672179 ELECTRICITY TRANSFER ACCESS CONTRACT (AA#32) (A) pay to Western Power* a cash deposit equal to the Charges* for two months’ services; or
Security for Charges*. 10.1 Subject to clause 10.2, if the Microgrid Operator determines at any time during the Term that either or both of the Retailer's or the Guarantor's technical or financial resources are such that a Reasonable and Prudent Person would consider there to be a material risk that the Retailer will be unable to meet its obligations under this Contract, then:
10.1.1 the Microgrid Operator may require the Retailer to within 15 Business Days nominate which of the Retailer or the Guarantor (“Nominated Person”) is to provide security; and
10.1.2 within 15 Business Days of the Retailer’s nomination under clause 10.1.1, the Nominated Person, at the Retailer's election, must either:
(a) pay to the Microgrid Operator a cash deposit equal to the Charges for two months’ Services; or
(b) provide an irrevocable and unconditional bank guarantee or equivalent financial instrument in terms acceptable to the Microgrid Operator (acting as a Reasonable and Prudent Person), guaranteeing or otherwise securing the Charges for two months’ Services; or
(c) if the Microgrid Operator is satisfied, as a Reasonable and Prudent Person, that the Retailer’s parent company’s financial and technical resources are such that the Retailer’s parent company would be able to meet the Retailer’s obligations under this Contract (including because the Retailer’s parent company meets at least one of the credit ratings given in clauses 10.2.1 and 10.2.2), procure from the Retailer’s parent company a guarantee substantially in the form set out in Schedule 6.
10.2 If the Retailer or the Guarantor has an unqualified credit rating of at least:
10.2.1 BBB from Standard and Poor’s Australia Pty Ltd; or
10.2.2 Baa from ▇▇▇▇▇’▇ Investor Service Pty Ltd, and provides evidence to this effect to the Microgrid Operator, then the Microgrid Operator is not entitled to determine under clause 10.1 that the Retailer's financial resources are such that there would be a material risk that the Retailer will be unable to meet its obligations under this Contract.
10.3 If any security held by the Microgrid Operator under clause 10.1.2(a) or 10.1.2(b) at any time is not equal to the Charges for two months' Services, then the Nominated Person must, within 15 Business Days of a written request by the Microgrid Operator to the Retailer:
10.3.1 if the security is a cash deposit under clause 10.1.2(a), provide the Microgrid Operator with an additional cash payment to increase the security so that it is equal to the Charges for two ...