Common use of Development Security Clause in Contracts

Development Security. No later than twenty (20) Business Days after the Effective Date, Seller shall deliver to Buyer security for Seller’s obligations under this Agreement before the achievement of the Commercial Operation Date (the “Development Security”). Development Security may be provided in any one or more of the following forms (as determined by Seller): (i) one or more letters of credit issued by Qualified Issuers in a form substantially similar to Appendix I, (ii) a guaranty from a Qualified Guarantor in a form substantially similar to Appendix J, or (iii) any combination thereof; provided that the total of the Development Security shall equal three million seven hundred fifty thousand dollars ($3,750,000). Seller shall maintain the Development Security until Seller delivers the Performance Security pursuant to Section 5.3(c), or until Buyer is required to return the Development Security under Section 5.3(d) below.

Development Security. No later than twenty (20) Business Days after the Effective Date, Seller shall deliver to Buyer security for Seller’s obligations under this Agreement before the achievement of the Commercial Operation Date (the “Development Security”). Development Security may be provided in any one or more of the following forms (as determined by Seller): (i) one or more letters of credit issued by Qualified Issuers in a form substantially similar to Appendix I, (ii) a guaranty from a Qualified Guarantor in a form substantially similar to Appendix J, or (iii) any combination thereof; provided that the . The total amount of the Development Security is based upon Fifty Dollars ($50) per kW of total expected Installed Capacity of the Facility, and shall equal three million seven hundred fifty thousand dollars Three Million Two Hundred Fifty Thousand Dollars ($3,750,0003,250,000). Seller shall maintain the Development Security until Seller delivers the Performance Security pursuant to Section 5.3(c), or until Buyer is required to return the Development Security under Section 5.3(d) below.