THIRD-PARTY COLLECTOR, APPLICABLE TARIFF, OTHER APPLICABLE
TARIFFS OR LPSC REGULATIONS. THE TRUSTEE SHALL BE ENTITLED TO CONCLUSIVELY RELY
ON ANY SUCH WRITTEN DIRECTIONS FROM THE SERVICER. THE SERVICER WILL SEEK AND USE
REASONABLE BEST EFFORTS TO OBTAIN, FROM ANY THIRD-PARTY COLLECTOR WHICH WISHES
TO SATISFY ITS CREDIT SUPPORT REQUIREMENTS BY MAKING A DEPOSIT TO A THIRD-PARTY
COLLECTOR DEPOSIT ACCOUNT, A WRITTEN SECURITY AGREEMENT STATING THAT (I) BY
MAKING SUCH DEPOSIT THE THIRD-PARTY COLLECTOR HAS GRANTED A SECURITY INTEREST IN
SUCH DEPOSIT IN FAVOR OF THE TRUSTEE, AND (II) THE TRUSTEE, IN HOLDING SUCH
DEPOSIT AS COLLATERAL, WILL HAVE THE RIGHTS AND REMEDIES OF A SECURED PARTY
UNDER ARTICLE 9 OF THE UCC WITH RESPECT TO SUCH COLLATERAL, AND THE SERVICER
WILL PROMPTLY FORWARD ANY SUCH AGREEMENT TO THE TRUSTEE.
(F)
AFFILIATED THIRD PARTY COLLECTORS. IN
PERFORMING ITS OBLIGATIONS UNDER THIS SECTION 3.05, THE SERVICER SHALL DEAL WITH
ANY THIRD-PARTY COLLECTORS WHICH ARE AFFILIATES OF THE
10
SERVICER ON TERMS WHICH ARE NO MORE FAVORABLE IN THE AGGREGATE TO SUCH
AFFILIATED THIRD-PARTY COLLECTOR THAN THOSE USED BY THE SERVICER IN ITS DEALINGS
WITH ANY THIRD-PARTY COLLECTORS THAT ARE NOT AFFILIATES OF THE SERVICER.
ARTICLE IV
SERVICES RELATED TO STORM RECOVERY CHARGE ADJUSTMENTS AND ALLOCATION ADJUSTMENTS
SECTION 4.01. STORM RECOVERY CHARGE ADJUSTMENTS .
From time to time, but at
least semi-annually, until the retirement of the Storm Recovery Bonds, the
Servicer shall identify the need for Storm Recovery Charge Adjustments and shall
take reasonable action to obtain and implement such Storm Recovery Charge
Adjustments, all in accordance with the following:
(A)
EXPECTED AMORTIZATION SCHEDULE. THE
EXPECTED AMORTIZATION SCHEDULE FOR THE STORM RECOVERY BONDS IS PROVIDED IN THE
SUPPLEMENT.
(B)
SEMI-ANNUAL STORM RECOVERY CHARGE
ADJUSTMENTS.
The Servicer will calculate and make semi-annual Storm Recovery Charge
Adjustments as of each Adjustment Date commencing with the first Adjustment Date
as follows:
(I)
SUBTRACT THE PRECEDING PERIOD'S STORM
RECOVERY CHARGE REVENUES COLLECTED AND REMITTED FROM THE PRECEDING PERIOD'S
PERIODIC PAYMENT REQUIREMENT TO CALCULATE THE UNDER-COLLECTION OR
OVER-COLLECTION FROM THE PRECEDING PERIOD;
(II)
CALCULATE THE AMOUNT OF THE STORM RECOVERY
CHARGE ADJUSTMENT, BY (I) CORRECTING ANY UNDER-COLLECTION OR OVER-COLLECTION
CALCULATED IN STEP (I) OVER A PERIOD OF UP TO 12 MONTHS COVERING THE NEXT TWO
SUCCEEDING PAYMENT DATES (IN ORDER TO MITIGATE THE SIZE AND IMPACT OF THE
ADJUSTMENT), USING THE RULES THAT (X) PRINCIPAL PAYMENTS ON THE STORM RECOVERY
BONDS WILL BE BROUGHT ON SCHEDULE OVER THE NEXT TWO SUCCEEDING PAYMENT DATES,
BUT (Y) THE RESULTING PERIODIC BILLING REQUIREMENT ALWAYS MUST BE SUFFICIENT TO
COVER OPERATING EXPENSES AND INTEREST ON THE STORM RECOVERY BONDS ON A TIMELY
BASIS, (II) ADDING ANY AMOUNT CARRIED FORWARD FROM THE PREVIOUS STORM RECOVERY
CHARGE ADJUSTMENT BY THE OPERATION OF STEP (I) ABOVE DURING THE PRECEDING STORM
RECOVERY CHARGE ADJUSTMENT CALCULATION;
(III)
ADD THE AMOUNT CALCULATED IN STEP (II) TO
THE UPCOMING PERIOD'S TRUED-UP PERIODIC BILLING REQUIREMENT TO DETERMINE AN
ADJUSTED PERIODIC BILLING REQUIREMENT FOR THE UPCOMING PERIOD;
(IV)
ADD THE AMOUNT, IF A POSITIVE NUMBER, EQUAL TO
THE DIFFERENCE