Unsecured Credit Limit Sample Clauses

Unsecured Credit Limit. As of the Effective Date and at any time following the Effective Date and from time to time during the Term of Agreement, notwithstanding an Event of Default under Section 7.1.6, if Buyer’s Exposure exceeds Seller’s Unsecured Credit Limit pursuant to Section 9.6, Buyer may demand that Seller provide Performance Assurance in an amount equal to the amount by which the Unsecured Credit Limit is exceeded rounded up to the nearest $250,000.00. If Seller fails to provide such Performance Assurance to Buyer within two (2) Business Days of receipt of notice, then an Event of Default under Section 7.1.6 shall be deemed to have occurred and Buyer will be entitled to the remedies set forth in Section 7.2 of this Agreement. If Seller disputes the amount of Performance Assurance requested by Buyer and such dispute relates to the amount of Market Exposure claimed by Buyer, then Seller shall (i) provide the full amount of Performance Assurance demanded by Buyer and (ii) notify Buyer of the existence and nature of the dispute not later than one (1) Business Day following the date that the demand for Performance Assurance is made. The Parties thereafter shall promptly consult with each other in order to reconcile the two conflicting amounts. If the Parties have not been able to resolve their dispute on or before the second Business Day following the date that the notification is made by Seller, then Market Exposure shall be recalculated by Buyer using the arithmetic average of one quotation from a recognized market-maker provided by Seller and one quotation from a recognized market-maker provided by Buyer. Performance Assurance shall be posted or returned in accordance with such recalculation. When the Amount of Performance Assurance held by Buyer is greater than the amount by which Buyer’s Exposure exceeds Seller’s Unsecured Credit Limit, then upon request of Seller, Buyer shall return the excess Performance Assurance, rounded down to the nearest $250,000.00 to Seller within two (2) Business Days of receipt of such request. If Buyer disputes the amount of Performance Assurance requested by Seller to be returned, then Buyer shall notify the Seller of the existence and nature of the dispute not later than one (1) Business Day following the date that the request for the return of Performance Assurance is made. The Parties thereafter shall promptly consult with each other in order to reconcile the two conflicting amounts. If the Parties have not been able to resolve their dis...