XML 31 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
Guarantees
6 Months Ended
Jun. 30, 2016
Guarantees  
Guarantees

14. Guarantees

 

We and our subsidiaries enter into various contracts that include indemnification and guarantee provisions as a routine part of our business activities. Examples of these contracts include asset purchases and sale agreements, including the Purchase Agreement to sell the Wind Projects, joint venture agreements, operation and maintenance agreements, and other types of contractual agreements with vendors and other third parties, as well as affiliates. These contracts generally indemnify the counterparty for tax, environmental liability, litigation and other matters, as well as breaches of representations, warranties and covenants set forth in these agreements.

 

In connection with the Purchase Agreement for the sale of the Wind Projects, on June 30, 2015, we entered into a guaranty agreement, under which we agreed to guarantee the full and prompt payment of all payment obligations of APT under the Purchase Agreement as and when they shall become due. APT and TerraForm have agreed to utilize the representation and warranty insurance for coverage of certain indemnification obligations, subject to a cap and certain exclusions.