Common use of Security for Payment Clause in Contracts

Security for Payment. 8.01 Unless Company has maintained an agreement similar to this Agreement with Authority during the 18 months prior to the effective date of this Agreement without the occurrence of any act or omission that would have been a default under this Agreement, if this Agreement had been in effect during that period, Company will provide Authority on or before the commencement date of this Agreement with a contract bond, irrevocable letter of credit or other similar security acceptable to Authority in an amount equal to the estimate of three months’ fees and charges (excluding PFCs), payable by Company under this Agreement, to guarantee the faithful performance by Company of its obligations under this Agreement and the payment of all fees and charges due hereunder (hereinafter referred to as “Contract Security”). Company will be obligated to maintain such Contract Security in effect until the expiration of 18 consecutive months during which period Company commits no default under this Agreement. Such Contract Security will be in a form and with a company acceptable to Authority and licensed to do business in the State of Florida. In the event that any such Contract Security is for a period less than the full period required hereunder or if Contract Security is canceled, Company will provide a renewal or replacement Contract Security for the remaining required period at least 60 days prior to the date of such expiration or cancellation.

Security for Payment. 8.01 Unless Company has maintained an agreement similar to this Agreement with Authority during the 18 months prior to the effective date of this Agreement without the occurrence of any act or omission that would have been a default under this Agreement, Agreement if this Agreement had been in effect during that period, Company will provide Authority on or before the commencement date of this Agreement with a contract bond, irrevocable standby letter of credit credit, or other similar security acceptable to Authority in an amount equal to the estimate of three months’ fees and charges (excluding PFCs), payable by Company under this Agreement, to guarantee the faithful performance by Company of its obligations under this Agreement and the payment of all fees and charges due hereunder (hereinafter referred to as “Contract Security”). Company will be obligated to maintain such Contract Security in effect until the expiration of 18 consecutive months during which period Company commits no default under this Agreement. Such Contract Security will be in a form and with a company acceptable to Authority and licensed to do business in the State of Florida. In the event that any such Contract Security is for a period less than the full period required hereunder or if Contract Security is canceled, Company will provide a renewal or replacement Contract Security for the remaining required period at least 60 days prior to the date of such expiration or cancellation.

Security for Payment. 8.01 Unless Company has maintained an agreement similar to this Agreement with Authority during the 18 months prior to the effective date of this Agreement without the occurrence of any act or omission that would have been a default under this Agreement, Agreement if this Agreement had been in effect during that period, Company will provide Authority on or before the commencement date of this Agreement with a contract bond, irrevocable standby letter of credit credit, or other similar security acceptable to Authority in an amount equal to the estimate of three months’ fees and charges (excluding PFCs), payable by Company under this Agreement, to guarantee the faithful performance by Company of its obligations under this Agreement and the payment of all fees and charges due hereunder (hereinafter referred to as “Contract Security”). Company will be obligated to maintain such Contract Security in effect until the expiration of 18 consecutive months during which period Company commits no default under this Agreement. Such Contract Security will be in a form and with a company acceptable to Authority and licensed to do business in the State of Florida. In the event that any such Contract Security is for a period less than the full period required hereunder or if Contract Security is canceled, Company will provide a renewal or replacement Contract Security for the remaining required period at least 60 days prior to the date of such expiration or cancellation.