Development Security. As a condition of CVEC’s execution of and continuing obligations under this Agreement, Developer shall provide to CVEC, as security for the performance of Developer’s obligations hereunder prior to the Outside Commercial Operation Date a cash deposit (the “Development Security”). The Development Security shall be deposited in the Deposit Control Account within five (5) Business Days after the Effective Date. CVEC shall have the right to draw upon the Development Security, at CVEC’s sole discretion: (i) as a non-exclusive remedy available to CVEC under Section 2.4(b) – (f) (Early Termination by CVEC; or (ii) in the event Developer fails to achieve Commercial Operation by the Outside Commercial Operation Date and fails to pay Delay Liquidated Damages as provided in Section 3.11.; (iii) if Developer fails to make any payments owing under this Agreement after expiration of applicable notice and cure periods; or (iv) if Developer fails to reimburse CVEC for costs that CVEC has incurred or may incur as a result of Developer’s failure to perform its obligations under this Agreement. Unless this Agreement is terminated, any such drawing on the Development Security by CVEC shall give rise to an obligation of Developer to replenish the Development Security to its required amount within three (3) Business Days of the drawing.
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Sources: Solar Power Purchase and Development Agreement, Solar Power Purchase and Development Agreement