Security Interest for “Obligations. The term “Obligations” as used in the Credit Support Annex includes the following additional obligations: With respect to Party A: “Obligations” includes all obligations of Party A under this PPA and any other Fixed Price Customer Supply Contract. The definition of “Exposure” in the Credit Support Annex is amended to include the total credit exposure (the “Total Exposure Amount”) of Party B, on an aggregate basis, consisting of the sum of: (i) the positive difference between (a) the Three Year Market Value and (b) the Three Year Contract Value under this PPA; (ii) the exposure amount(s) under any other Fixed Price Customer Supply Contracts, however calculated under such contracts, including an amount calculated each Business Day reflecting the Settlement Amount that would be owed to Party B on such day if Party A had defaulted under such Fixed Price Customer Supply Contract; provided, that if a Fixed Price Customer Supply Contract does not include provisions for margining xxxx-to-market exposure, then such Fixed Price Customer Supply Contract will not be included for purposes of this calculation; and (iii) any amount required as security from Party A pursuant to any Fixed Price Customer Supply Contract that is not collateral posted as margin and treated as part of any Exposure amount; provided, however, that in the event the Total Exposure Amount for any day is a negative number, the Total Exposure Amount shall be deemed to be zero for such day. Any collateral or security previously posted by Party A under this PPA or any other Fixed Price Customer Supply Contract will be netted against the Total Exposure Amount when determining collateral requirements. For the avoidance of doubt, the REC Collateral requirement set forth above is not included in this definition for purposes of this Section 8. The following definitions are added to the Credit Support Annex:
Appears in 2 contracts
Samples: Long Term Power Purchase Agreement, Long Term Power Purchase Agreement
