Common use of Release of Charge Clause in Contracts

Release of Charge. 2.3.1 The pari pasu charge created under Article 2.2.1 shall be immediately released and vacated on the earlier of: (a) the date on which the PPA has terminated, in accordance with the terms thereof, and all the Secured Obligations have been paid in full; (b) the occurrence of all of the following events mentioned in sub-articles (i), (ii) and (iii) below, subject to the proviso to this sub-clause: (i) A period of not less than two (2) years, from COD of Power Station, has elapsed; and (ii) The Procurer has achieved, for its ability to honour its Tariff Payment obligations to the Seller under PPA, a credit rating of „A‟ or better from a SEBI registered Indian credit rating agency (acceptable to Lenders) consistently for a period of at least three (3) years; and Immediately prior to the aforementioned three (3) year period, for a period of at least two (2) years, there has been no Procurer Event of Default under Article 13.2 of the PPA by such Procurer. Provided that, the Procurer shall intimate the Seller in writing of the occurrence of the above events and its intention to release the pari pasu charge created under this Agreement. If the Seller desires to continue with said pari pasu charge, the Seller shall intimate the same to the Procurer in writing within thirty (30) days of receipt of intimation from the Procurer and in such case the Seller shall be liable to bear the costs of continuation of such pari pasu charge, with effect from such date. In case the Seller fails to respond or agrees to release the pari pasu charge, the said charge shall forthwith cease and this Agreement shall stand terminated. 2.3.2 In the case of the occurrence of the events described in Article 2.3.1 (a) or (b) and in the event the Seller fails to respond or agrees to release the pari pasu charge as mentioned above, the Seller shall at its own costs and expenses forthwith: (a) cede the benefit of the pari pasu charge on and security interest in the Hypothecated Interest; and (b) re-assign, retransfer or re-convey to the Procurer, or as it may direct, the Hypothecated Interest or such part thereof as may remain, freed from the Security created hereunder; and (c) execute all such documents and do all such other acts as may be required by the Procurer in connection with the release of the benefit of the charge on and security interest in the Hypothecated Interest.

Release of Charge. 2.3.1 The pari pasu first priority charge created under Article 2.2.1 shall be immediately released and vacated on the earlier of: (a) the date on which the PPA has is terminated, in accordance with the terms thereof, and all the Secured Obligations have been paid in full; (b) the occurrence of all of the following events mentioned in sub-articles (i), (ii) and (iii) below, subject to the proviso to this sub-clause: (i) A period of not less than two (2) years, from COD of Power Station, Expiry Date has elapsed; and (ii) The Procurer has achieved, for its ability to honour its Tariff Payment obligations to the Seller under PPA, a credit rating of „A‟ ‘A’ or better from a SEBI registered Indian credit rating agency (acceptable to Lenders) consistently for a period of at least three (3) years; and and (iii) Immediately prior to the aforementioned three (3) year period, for a period of at least two (2) years, there has been no Procurer Event of Default under Article 13.2 11.2 of the PPA by such Procurer▇▇▇▇▇▇▇▇. Provided that, the Procurer shall intimate the Seller in writing of the occurrence of the above events and its intention to release the pari pasu first priority charge created under this Agreement. If the Seller desires to continue with said pari pasu first priority charge, the Seller shall intimate the same to the Procurer in writing within thirty (30) days of receipt of intimation from the Procurer and in such case the Seller shall be liable to bear the costs of continuation of such pari pasu first priority charge, with effect from such date. In case the Seller fails to respond or agrees to release the pari pasu first priority charge, the said charge shall forthwith cease and this Agreement shall stand terminated. 2.3.2 In the case of the occurrence of the events described in Article 2.3.1 (a2.3.1(a) or (b) and in the event the Seller fails to respond or agrees to release the pari pasu first priority charge as mentioned above, the Seller shall at its own costs and expenses forthwith: (a) cede the benefit of the pari pasu first priority charge on and security interest in the Hypothecated Interest; and (b) re-assign, retransfer or re-convey to the Procurer, or as it may direct, the Hypothecated Interest or such part thereof as may remain, freed from the Security created hereunder; and (c) execute all such documents and do all such other acts as may be required by the Procurer in connection with the release of the benefit of the charge on and security interest in the Hypothecated Interest.