Common use of Posting of Security Clause in Contracts

Posting of Security. For availability and use during any term of this Lease, and prior to the earlier of (i) three (3) years before the end of the Initial Term of the Lease, or (ii) upon a Termination per section 7(b), Tenant shall provide a performance assurance (i.e. letter of credit, surety bond, parent guaranty, etc., as may be elected by Tenant) to the Landlord for the decommissioning of the Generating Facility and restoration of the Site. Tenant shall obtain Landlord’s consent to Tenant’s choice as to the form of performance insurance, provided that Landlord’s consent shall not be unreasonably withheld, conditioned, or delayed. The amount of the performance assurance shall be based on the reasonably estimated cost to dismantle and remove the Generating Facility while taking into consideration the salvage value of solar modules, inverters, support structures and the like that is reasonably determined by a qualified engineer selected by Tenant and approved by Landlord, such approval not to be unreasonably withheld, conditioned, or delayed (“Decommissioning Costs”). Notwithstanding the foregoing, Tenant is not required to provide a performance assurance to the Landlord if Tenant provides a performance assurance to any governmental authority or agency in connection with the removal of the Generating Facility from the Property, provided that such performance assurance is in a form reasonably satisfactory to Landlord.