Common use of Provision and Application of Security Clause in Contracts

Provision and Application of Security. At least thirty (30) Calendar Days prior to the commencement of the procurement, installation, or construction of a discrete portion of a Connecting Transmission Owner’s Attachment Facilities, Developer shall provide Connecting Transmission Owner, at Developer’s option, a guarantee, a surety bond, letter of credit or other form of security that is reasonably acceptable to Connecting Transmission Owner and is consistent with the Uniform Commercial Code of the jurisdiction identified in Article 9.2.1 of this Agreement. Such security for payment shall be in an amount sufficient to cover the cost for the Developer’s share of constructing, procuring and installing the applicable portion of Connecting Transmission Owner’s Attachment Facilities, and shall be reduced on a dollar- for-dollar basis for payments made to Connecting Transmission Owner for these purposes. Interconnection Customer shall provide Affected System Operator with Security in the amount set forth in Appendix A. If Interconnection Customer: (i) does not pay an invoice issued by Affected System Operator pursuant to Article 8.1 within the timeframe set forth in Article 8.3 or (ii) does not pay any disputed amount into an independent escrow account pursuant to Article 8.4, Affected System Operator may draw upon Interconnection Customer’s Security to recover such payment. Interconnection Customer’s Security shall be reduced on a dollar-for-dollar basis for Interconnection Customer’s payments made to the Affected System Operator associated with the performance of the EPC Services. 11.5.1 The guarantee must be made by an entity that meets the commercially reasonable creditworthiness requirements of Connecting Transmission Owner, and contains terms and conditions that guarantee payment of any amount that may be due from Developer, up to an agreed-to maximum amount. 11.5.2 The letter of credit must be issued by a financial institution reasonably acceptable to Connecting Transmission Owner and must specify a reasonable expiration date. 11.5.3 The surety bond must be issued by an insurer reasonably acceptable to Connecting Transmission Owner and must specify a reasonable expiration date. 11.5.4 Attachment S to the ISO OATT shall govern the Security that Developer provides for System Upgrade Facilities and System Deliverability Upgrades.

Provision and Application of Security. At least thirty (30) Calendar Days prior to the commencement of the procurement, installation, or construction of a discrete portion of a Connecting Transmission Owner’s Attachment Facilities, Developer shall provide Connecting Transmission Owner, at Developer’s option, a guarantee, a surety bond, letter of credit or other form of security that is reasonably acceptable to Connecting Transmission Owner and is consistent with the Uniform Commercial Code of the jurisdiction identified in Article 9.2.1 14.2.1 of this Agreement. Such security for payment shall be in an amount sufficient to cover the cost for the Developer’s share of constructing, procuring and installing the applicable portion of Connecting Transmission Owner’s Attachment Facilities, and shall be reduced on a dollar- dollar-for-dollar basis for payments made to Connecting Transmission Owner for these purposes. Interconnection Customer shall provide Developer has provided Affected System Operator Transmission Owner with Security security in the amount set forth of the ATO Estimated Total Costs for the Affected System Upgrade Facilities in Appendix A. accordance with Attachment S to the NYISO OATT. If Interconnection Customerthe Developer: (i) does not pay an invoice issued by Affected System Operator Transmission Owner pursuant to Article 8.1 7.1 within the timeframe set forth in Article 8.3 7.3 or (ii) does not pay any disputed amount into an independent escrow account pursuant to Article 8.47.4, the Affected System Operator Transmission Owner may draw upon Interconnection CustomerDeveloper’s Security security to recover such payment. Interconnection CustomerThe Developer’s Security security shall be reduced on a dollar-for-dollar basis for Interconnection CustomerDeveloper’s payments made to the Affected System Operator associated with the Transmission Owner for its performance of the EPC Services.. In addition: 11.5.1 The guarantee must be made by an entity that meets the commercially reasonable creditworthiness requirements of Connecting Transmission Owner, and contains terms and conditions that guarantee payment of any amount that may be due from Developer, up to an agreed-to maximum amount. 11.5.2 The letter of credit must be issued by a financial institution reasonably acceptable to Connecting Transmission Owner and must specify a reasonable expiration date. 11.5.3 The surety bond must be issued by an insurer reasonably acceptable to Connecting Transmission Owner and must specify a reasonable expiration date. 11.5.4 Attachment S to the ISO OATT shall govern the Security that Developer provides for System Upgrade Facilities and System Deliverability Upgrades.

Provision and Application of Security. At least thirty (30) Calendar Days prior to the commencement of the procurement, installation, or construction of a discrete portion of a Connecting Transmission Owner’s Attachment Facilities, Developer shall provide Connecting Transmission Owner, at Developer’s option, a guarantee, a surety bond, letter of credit or other form of security that is reasonably acceptable to Connecting Transmission Owner and is consistent with the Uniform Commercial Code of the jurisdiction identified in Article 9.2.1 8.2.1 of this Agreement. Such security for payment shall be in an amount sufficient to cover the cost for the Developer’s share of constructing, procuring and installing the applicable portion of Connecting Transmission Owner’s Attachment Facilities, and shall be reduced on a dollar- for-dollar basis for payments made to Connecting Transmission Owner for these purposes. Interconnection Customer Developer shall provide Affected System Operator with Security in the amount set forth of the ASO Estimated Total Costs for the Affected System Upgrade Facilities in Appendix A. accordance with Attachment S to the ISO OATT. If Interconnection Customerthe Developer: (i) does not pay an invoice issued by Affected System Operator pursuant to Article 8.1 Error! Reference source not found. within the timeframe set forth in Article 8.3 7.3 or (ii) does not pay any disputed amount into an independent escrow account pursuant to Article 8.47.4, the Affected System Operator may draw upon Interconnection CustomerDeveloper’s Security to recover such payment. Interconnection CustomerThe Developer’s Security shall be reduced on a dollar-for-dollar basis for Interconnection Customer’s payments made to the Affected System Operator associated with the performance after discrete portions of the EPC ServicesServices have been performed in accordance with the requirements in Section 25.8.5 of Attachment S to the NYISO OATT. 11.5.1 The guarantee must be made by an entity that meets the commercially reasonable creditworthiness requirements of Connecting Transmission Owner, and contains terms and conditions that guarantee payment of any amount that may be due from Developer, up to an agreed-to maximum amount. 11.5.2 The letter of credit must be issued by a financial institution reasonably acceptable to Connecting Transmission Owner and must specify a reasonable expiration date. 11.5.3 The surety bond must be issued by an insurer reasonably acceptable to Connecting Transmission Owner and must specify a reasonable expiration date. 11.5.4 Attachment S to the ISO OATT shall govern the Security that Developer provides for System Upgrade Facilities and System Deliverability Upgrades.

Provision and Application of Security. At least thirty (30) Calendar Days prior to the commencement of the procurement, installation, or construction of a discrete portion of a Connecting Transmission Owner’s Attachment Facilities, Developer shall provide Connecting Transmission Owner, at Developer’s option, a guarantee, a surety bond, letter of credit or other form of security that is reasonably acceptable to Connecting Transmission Owner and is consistent with the Uniform Commercial Code of the jurisdiction identified in Article 9.2.1 of this Agreement. Such security for payment shall be in an amount sufficient to cover the cost for the Developer’s share of constructing, procuring and installing the applicable portion of Connecting Transmission Owner’s Attachment Facilities, and shall be reduced on a dollar- dollar-for-dollar basis for payments made to Connecting Transmission Owner for these purposes. Interconnection Customer shall provide Developer has provided Affected System Operator with Security in the amount set forth of the ASO Estimated Total Costs for the Affected System Upgrade Facilities in Appendix A. accordance with Attachment S to the ISO OATT. If Interconnection Customerthe Developer: (i) does not pay an invoice issued by Affected System Operator pursuant to Article 8.1 within the timeframe set forth in Article 8.3 or (ii) does not pay any disputed amount into an independent escrow account pursuant to Article 8.4, the Affected System Operator may draw upon Interconnection CustomerDeveloper’s Security to recover such payment. Interconnection CustomerThe Developer’s Security shall be reduced on a dollar-for-dollar basis for Interconnection CustomerDeveloper’s payments made to the Affected System Operator associated with the for its performance of the EPC Services.. In addition: 11.5.1 The guarantee must be made by an entity that meets the commercially reasonable creditworthiness requirements of Connecting Transmission Owner, and contains terms and conditions that guarantee payment of any amount that may be due from Developer, up to an agreed-to maximum amount. 11.5.2 The letter of credit must be issued by a financial institution reasonably acceptable to Connecting Transmission Owner and must specify a reasonable expiration date. 11.5.3 The surety bond must be issued by an insurer reasonably acceptable to Connecting Transmission Owner and must specify a reasonable expiration date. 11.5.4 Attachment S to the ISO OATT shall govern the Security that Developer provides for System Upgrade Facilities and System Deliverability Upgrades.