Common use of Provider’s Credit Support Clause in Contracts

Provider’s Credit Support. (a) The financial security requirements imposed on the Provider shall be administered by the T&D. (b) The Base Security amount must be furnished to T&D before the commencement of the Term of Service and shall not decrease over the Term of Service. The Order designating Provider as a Standard Offer Provider will indicate the form or forms of financial security that Provider initially will furnish to T&D in order to satisfy the Base Security requirements. (c) If the Provider is not able to provide all or a portion of the Base Security amount in the form of a corporate guaranty because of the applicable Guarantee Cap, then the Provider may provide cash or a letter of credit (provided that such letter of credit meets the requirements set forth in the MPUC’s RFP) to satisfy the Base Security requirement set forth herein. (d) Any cash provided by Provider as Provider’s Credit Support under this Agreement shall be held in an interest-bearing deposit account selected by T&D in its reasonable discretion; provided, however, that T&D shall have no obligation to segregate any cash provided as Provider’s Credit Support in a segregated account. Interest shall accrue on that cash deposit at the daily federal funds rate and shall be retained in that account.

Provider’s Credit Support. (a) The financial security requirements imposed on the Provider by the MPUC’s RFP shall be administered by the T&D. (b) The Base Security amount must be furnished to T&D before the commencement of the Term of Service and shall not decrease over the Term of Service. The Order designating Provider as a Standard Offer Provider will indicate the form or forms of financial security that Provider initially will furnish to T&D in order to satisfy the Base Security requirements. (c) If the Provider is not able to provide all or a portion of the Base Security amount in the form of a corporate guaranty because of the applicable Guarantee Cap, then the Provider may provide cash or a letter of credit (provided that such letter of credit meets the requirements set forth in the MPUC’s RFP) to satisfy the Base Security requirement set forth herein. (d) Any cash provided by Provider as Provider’s Credit Support credit support under this Agreement shall be held in an interest-bearing deposit account selected by T&D in its reasonable discretion; provided, however, that T&D shall have no obligation to segregate any cash provided as Provider’s Credit Support credit support in a segregated account. Interest As between T&D and Provider, interest shall accrue on that cash deposit at the daily federal funds rate and shall be retained in that account.