Common use of Seller Collateral Requirements Clause in Contracts

Seller Collateral Requirements. (a) On or prior to the Commercial Operation Date, or in the event that the Commercial Operation Date is within sixty (60) days following the Effective Date, then within sixty (60) days following the Commercial Operation Date of the Unit, Seller shall execute in favor of and deliver to Buyer a deed of trust or collateral assignment of lease with respect to the Unit (in either case, a “Security Agreement”), which secures the payment obligations of Seller to Buyer hereunder so as provide a first lien on the Unit, except as provided below (the “Secured Obligations”). The Security Agreement shall be in a form reasonably acceptable to Buyer and shall provide Buyer, among other rights, (i) a right to receive notices of default from secured lenders and parties with an assigned interest in the Secured Obligations, (ii) in the case of an Event of Default by Seller hereunder with respect to the Secured Obligations, the right to step in and cure defaults of the Seller to the senior lender and if such right is exercised by the Buyer then a right to step in and operate the Project. The rights of Buyer thereunder shall at all times be subject and subordinate to, as the case may be, either (i) the rights and interests of the Unit lessor, in the case of a collateral assignment of a Unit lease (a “Unit Lease”), or (ii) in the case of a deed of trust, the rights and interests of any beneficiary under any prior or senior deed of trust or other security interest (a “Senior Lien”) executed or to be executed by Seller in favor of any person or persons (a “Senior Lender”) providing construction and/or term financing for the Unit, including any renewal, refinancing, modification or extension thereof (a “Project Financing”).

Seller Collateral Requirements. (a) On or prior to the Commercial Operation Date, or in the event that the Commercial Operation Date is within sixty (60) days following the Effective Date, then within sixty (60) days following the Commercial Operation Date of the Unit, Seller shall execute in favor of and deliver to Buyer a deed of trust or collateral assignment of lease with respect to the Unit (in either case, a “Security Agreement”), which secures the payment obligations of Seller to Buyer hereunder so as provide a first lien on the Unit, except as provided below (the “Secured Obligations”). The Security Agreement shall be in a form reasonably acceptable to Buyer and shall provide Buyer, among other rights, (i) a right to receive notices of default from secured lenders and parties with an assigned interest in the Secured Obligations, (ii) in the case of an Event of Default by Seller hereunder with respect to the Secured Obligations, the right to step in and cure defaults of the Seller to the senior lender and if such right is exercised by the Buyer then a right to step in and operate the Project. The rights of Buyer thereunder shall at all times be subject and subordinate to, as the case may be, either (i) the rights and interests of the Unit lessor, in the case of a collateral assignment of a Unit lease (a “Unit Lease”), or (ii) in the case of a deed of trust, the rights and interests of any beneficiary under any prior or senior deed of trust or other security interest (a “Senior Lien”) executed or to be executed by Seller in favor of any person or persons (a “Senior Lender”) providing construction and/or term financing for the Unit, including any renewal, refinancing, modification or extension thereof (a “Project Financing”).

Seller Collateral Requirements. (a) On or prior to the Commercial Operation Date, or in the event that the Commercial Operation Date is within sixty (60) days following the Effective Date, then within sixty (60) days following the Commercial Operation Date of the Unit, Seller shall execute in favor of and deliver to Buyer a deed of trust or collateral assignment of lease with respect to the Unit (in either case, a “"Security Agreement”"), which secures the payment obligations of Seller to Buyer hereunder so as provide a first lien on the Unit, except as provided below (the “"Secured Obligations”"). The Security Agreement shall be in a form reasonably acceptable to Buyer and shall provide Buyer, among other rights, (i) a right to receive notices of default from secured lenders and parties with an assigned interest in the Secured Obligations, (ii) in the case of an Event of Default by Seller hereunder with respect to the Secured Obligations, the right to step in and cure defaults of the Seller to the senior lender and if such right is exercised by the Buyer then a right to step in and operate the Project. The rights of Buyer thereunder shall at all times be subject and subordinate to, as the case may be, either (i) the rights and interests of the Unit lessor, in the case of a collateral assignment of a Unit lease (a “Unit Lease”), or (ii) in the case of a deed of trust, the rights and interests of any beneficiary under any prior or senior deed of trust or other security interest (a “Senior Lien”) executed or to be executed by Seller in favor of any person or persons (a “Senior Lender”) providing construction and/or term financing for the Unit, including any renewal, refinancing, modification or extension thereof (a “Project Financing”).