T&D Credit Support Sample Clauses
The T&D Credit Support clause establishes the requirements for providing financial assurance related to transmission and distribution (T&D) obligations in an energy contract. Typically, this clause outlines the types of acceptable credit support, such as letters of credit or guarantees, and specifies when and how such support must be delivered or maintained by the relevant party. Its core function is to mitigate the risk of non-payment or default by ensuring that adequate financial backing is in place for T&D-related commitments.
POPULAR SAMPLE Copied 1 times
T&D Credit Support. (a) If at any time during the Term of Agreement, (i) the Credit Rating assigned to T&D by a Rating Agency, or if the T&D does not have a Credit Rating, then the rating then assigned by a Rating Agency to T&D as an issuer rating (or the T&D Guarantor, if a guaranty pursuant to Section 16.2(c) is then in effect), falls below Investment Grade or (ii) in the case where the T&D does not have a Credit Rating, the Net Worth of the T&D is less than $[TBD] (a “T&D Downgrade Event”), then the T&D (or the T&D Guarantor, if a guaranty pursuant to Section 16.2(c) is then in effect) shall promptly notify the Provider and the MPUC of such T&D Downgrade Event and shall deliver credit support to the Provider in a form and amount required pursuant to the definition of Performance Assurance set forth in Section 16.2 hereof, within five (5) Business Days of such T&D Downgrade Event. “Net Worth” means the sum, but without duplication, of (a) the value stated on the books of the T&D of the capital stock of the T&D and its subsidiaries plus (b) the amount of the paid in capital and retained earnings of the T&D and its subsidiaries, in each case as such amounts would be shown on a consolidated balance sheet of the T&D and its subsidiaries as of such time prepared in accordance with generally accepted accounting principles.
T&D Credit Support. If, at any time during the Term of this Agreement, the Credit Rating assigned to T&D by a Rating Agency falls below Investment Grade (a “T&D Downgrade Event”), then T&D shall promptly notify Seller of such T&D Downgrade Event and shall deliver to Seller credit support in a form that meets the definition of Replacement Security within five (5) Business Days of such T&D Downgrade Event in an amount equal to T&D’s Exposure. [If T&D does not have a credit rating, a Net Worth Test alternative will be negotiated] If, after delivery of security referenced in Section 5.1(a) as a result of a T&D Downgrade Event, the Credit Rating of T&D is restored to Investment Grade, Seller shall return such Replacement Security to T&D within five (5) Business Days of notification from T&D of such upgrade.
T&D Credit Support. 6.1.1 If, at any time during the Term of this Agreement (1) the T&D does not have a Credit Rating or the Credit Rating assigned to T&D by a Rating Agency falls below Investment Grade, (“T&D Downgrade Event”) and (2) T&D’s Net Worth is less than two hundred seventy-five million United States dollars ($275,000,000), then T&D shall promptly notify Seller of such T&D Downgrade Event and shall deliver T&D Credit Support to Seller in an amount equal to two (2) months of expected Contract Payments as defined in Article 4 and in a form that meets the definition of Acceptable Credit Support (“T&D Credit Support”) within five (5) Business Days of such T&D Downgrade Event. If a T&D Downgrade Event has occurred and T&D’s net worth is greater than two hundred seventy-five million United States dollars ($275,000,000) then Seller shall have the right to petition the Commission to require T&D to post the T&D Credit Support.
6.1.2 If, after delivery of T&D Credit Support referenced in Section 6.1.1 as a result of a T&D Downgrade Event, the Credit Rating of T&D is restored to Investment Grade or T&D’s Net Worth is more than two hundred seventy-five million United States dollars ($275,000,000), Seller shall return such T&D Credit Support, with interest if applicable, to T&D within five (5) Business Days of notification from T&D of such upgrade.
6.1.3 At the expiry of the Term, Seller shall return or release all unused T&D Credit Support, with interest if applicable, within five (5) Business Days.
T&D Credit Support. If at any time during the Term of Agreement, (i) the Credit Rating assigned to T&D by a Rating Agency, or if the T&D does not have a Credit Rating, then the rating then assigned by a Rating Agency to T&D as an issuer rating (or the T&D Guarantor, if a guaranty pursuant to Section 17.2(c) is then in effect), falls below Investment Grade or (ii) in the case where the T&D does not have a Credit Rating, the Net Worth of the T&D is less than $[TBD] (a “T&D Downgrade Event”), then the T&D (or the T&D Guarantor, If a guaranty pursuant to Section 17.2(c) is then in effect) shall promptly notify the Provider and the MPUC of such T&D Downgrade Event and shall deliver credit support to the Provider in a form and amount required pursuant to the definition of Performance Assurance set forth in Section 17.2 hereof, within five (5) Business Days of such T&D Downgrade Event. “
T&D Credit Support. 5.1.1 If, at any time during the Term, (1) the Credit Rating assigned to T&D by a Rating Agency, or if T&D does not have a Credit Rating, then the rating a Rating Agency then assigns to T&D as an issuer rating (or the T&D Guarantor, if a guarantee under Section 5.3 is then in effect), falls below Investment Grade or
T&D Credit Support. 5.1.1 If, at any time during the Term, (1) T&D obtains a Credit Rating by a Rating Agency and the Credit Rating is below or subsequently falls below Investment Grade, or (2) T&D does not have a Credit Rating and T&D’s Net Worth is less than two-hundred seventy-five million United States dollars ($275,000,000) (either event constituting a “T&D Downgrade Event”), then T&D shall promptly notify Seller of the T&D Downgrade Event and shall deliver to Seller credit support in a form that meets the definition of Replacement Security within five