Common use of Operating Security Clause in Contracts

Operating Security. Seller shall post “Operating Security” (separate from Delay Security) of [[INSERT]] United States dollars ($ ) in the form of Cash, Letter of Credit, Guaranty, or other form of Credit Support Security acceptable to Avista. Operating Security shall be posted prior to Commercial Operation and shall be renewed in one year increments such that it is continuous over the remaining Term of the Agreement. If on or following the sixtieth (60th) day prior to the expiration date of such Letter of Credit, Avista has not received from the issuing bank an amendment renewing the Letter of Credit for a subsequent year, or has not been provided a replacement Letter of Credit from a Qualified Institution in substantially the same form as the existing Letter of Credit, Avista will be permitted to draw on the Letter of Credit up to the face amount of the Letter of Credit in accordance with the terms and conditions of such Letter of Credit. Operating Security shall be posted before the Commercial Operation Date of this Agreement. If Operating Security is posted in the form of a Letter of Credit, such Operating Security shall be posted substantially in the form of Exhibit O attached hereto.