Acceptance of a Shipper as an approved Shipper on Company’s system is contingent upon a satisfactory credit appraisal by Company.
3.6.1 Company shall perform a credit appraisal, if applicable, utilizing the following information which Shipper or potential Shipper shall furnish to Company:
3.6.1.1 A copy of Xxxxxxx’s most recent audited financial statements;
3.6.1.2 A copy of Xxxxxxx’s most recent twelve (12) month audited financial statement Annual Report and, if applicable, SEC 10-K form;
3.6.1.3 A list of Shipper’s affiliates, including parent and subsidiaries, if applicable; and
3.6.1.4 A bank reference and two trade references. The results of reference checks must show that Shipper’s obligations are being paid on a reasonably prompt basis.
3.6.2 Shipper must meet the following criteria in order to be deemed satisfactory for purposes of Section 3.6:
3.6.2.1 Shipper must not be operating under any chapter of the bankruptcy laws and must not be subject to liquidation or debt reduction procedures under state laws, such as an assignment for the benefit of creditors, or any informal creditors’ committee agreement. An exception can be made for a Shipper who is a debtor in possession operating under Chapter XI of the Federal U.S. Bankruptcy Act but only with adequate assurances that the bills will be paid promptly as a cost of administration under the federal court’s jurisdiction.
3.6.2.2 Shipper must not be subject to pending liquidation or judicial proceedings in state or federal courts which would cause a substantial deterioration in its financial condition or which could cause a condition of insolvency or adversely affect its ability to exist as an on-going business entity.
3.6.2.3 Shipper must have no significant outstanding collection lawsuits or judgments which would jeopardize Xxxxxxx’s ability to remain solvent.
3.6.3 If a Shipper or potential Shipper fails to satisfy credit criteria, it may still obtain service hereunder if it provides one of the following to Company: (a) a continuing deposit equal to a minimum of 180 days service at the requested MDQ; (b) a standby irrevocable letter of credit acceptable to Company; or (c) a guarantee by a person or another entity which does satisfy Company’s credit criteria.
Acceptance of a Shipper as an approved Shipper on Company’s system is contingent upon a satisfactory credit appraisal by Company.
3.6.1 Company shall perform a credit appraisal, if applicable, utilizing the following information which Shipper or potential Shipper shall furnish to Company:
3.6.1.1 A copy of Shipper’s most recent audited financial statements;
3.6.1.2 A copy of Shipper’s most recent twelve (12) month audited financial statement Annual Report and, if applicable, SEC 10-K form;
3.6.1.3 A list of Shipper’s affiliates, including parent and subsidiaries, if applicable; and
3.6.1.4 A bank reference and two trade references. The results of reference checks must show that Shipper’s obligations are being paid on a reasonably prompt basis.
3.6.2 Shipper must meet the following criteria in order to be deemed satisfactory for purposes of Section 3.6:
3.6.2.1 Shipper must not be operating under any chapter of the bankruptcy laws and must not be subject to liquidation or debt reduction procedures under state laws, such as an assignment for the benefit of creditors, or any informal creditors’ committee agreement. An exception can be made for a Shipper who is a debtor in possession operating under Chapter XI of the Federal U.S. Bankruptcy Act but only with adequate assurances that the bills will be paid promptly as a cost of administration under the federal court’s jurisdiction.
Acceptance of a Shipper s request for service and the continuance of service are contingent upon the Shipper satisfying, on an on-going basis, a credit appraisal by Transporter.
