Common use of Assurance of Payment Clause in Contracts

Assurance of Payment. 6.1 When a Deposit/Assurance of Payment Is Required. Charter shall be required, upon CenturyTel’s request, to provide CenturyTel with a deposit for, or an adequate assurance of payment of, amounts due (or to become due) to CenturyTel hereunder, upon the occurrence of one or more of the following conditions: 6.1.1 Charter has received at least two (2) delinquent notices1 in the prior twelve months; 6.1.2 Charter is a new entrant to the market or an affiliate to an existing CLEC (“New Entrant”) and has not been in service long enough to have already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to CenturyTel for charges incurred as a CLEC; 6.1.3 there is deemed by CenturyTel to be an “impairment of credit” of the “New Entrant,” as defined in Section 6.1.2, at the initial establishment of credit. For purposes of this Section 6.1.3, an “impairment of credit” will be determined from information available from financial sources, that the New Entrant has not maintained a BBB or better long term debt rating or an A-2 or 1 Delinquent notices, as used in this Section 6, refer to notices issued to Charter by CenturyTel for unpaid, undisputed amounts. better short term debt rating by Standard and Poor’s for the prior six months; 6.1.4 Charter (a) fails to timely pay a bill rendered to it (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which the Billed Party has complied with the billing dispute requirements set forth in this Agreement), and (b) the amount of such undisputed delinquency exceeds five percent (5%) of the aggregate amount billed by CenturyTel to Charter under this Agreement for the month in question; or

Assurance of Payment. 6.1 When a Deposit/Assurance of Payment Is Required. Charter shall be required, upon CenturyTel’s request, to provide CenturyTel with a deposit for, or an adequate assurance of payment of, amounts due (or to become due) to CenturyTel hereunder, upon the occurrence of one or more of the following conditions: 6.1.1 Charter has received at least two (2) delinquent notices1 in the prior twelve months; 6.1.2 Charter is a new entrant to the market or an affiliate to an existing CLEC (“New Entrant”) and has not been in service long enough to have already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to CenturyTel for charges incurred as a CLEC; 6.1.3 there There is deemed by CenturyTel to be an “impairment of credit” of the “New Entrant,” as defined in Section 6.1.2, at the initial establishment of credit. For purposes of this Section 6.1.3, an “impairment of credit” will be determined from information available from financial sources, that the New Entrant has not maintained a BBB or better long term debt rating or an A-2 or 1 Delinquent notices, as used in this Section 6, refer to notices issued to Charter by CenturyTel for unpaid, undisputed amounts. better short term debt rating by Standard and Poor’s for the prior six months; 6.1.4 Charter (a) fails to timely pay a bill rendered to it (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which the Billed Party has complied with the billing dispute requirements set forth in this Agreement), and (b) the amount of such undisputed delinquency exceeds five percent (5%) of the aggregate amount billed by CenturyTel to Charter under this Agreement for the month in question; or

Assurance of Payment. 6.1 When a Deposit/Assurance of Payment Is Required. Charter TWCIS (AL) shall be required, upon CenturyTelCenturyLink’s written request, to provide CenturyTel CenturyLink with a deposit for, or an adequate assurance of payment of, amounts due (or to become due) to CenturyTel CenturyLink hereunder, upon the occurrence of one or more of the following conditions: 6.1.1 Charter TWCIS (AL) has received at least two (2) delinquent notices1 in the prior twelve months; 6.1.2 Charter TWCIS (AL) is a new entrant to the market or an affiliate Affiliate to an existing CLEC (“New Entrant”) and has not been in service long enough to have already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to CenturyTel CenturyLink for charges incurred as a CLEC; 6.1.3 there There is deemed by CenturyTel CenturyLink to be an “impairment of credit” of the “New Entrant,” as defined in Section 6.1.2, at the initial establishment of credit. For purposes of this Section 6.1.3, an “impairment of credit” will be determined from information available from financial sources, that the New Entrant has not maintained a BBB or better long term debt rating or an A-2 or 1 Delinquent notices, as used in this Section 6, refer to notices issued to Charter by CenturyTel for unpaid, undisputed amounts. better short term debt rating by Standard and Poor’s for the prior six months; 6.1.4 Charter TWCIS (AL) (a) fails to timely pay a bill xxxx rendered to it (except such portion of a bill xxxx that is subject to a good faith, bona fide dispute and as to which the Billed Party has complied with the billing dispute requirements set forth in this Agreement), and (b) the amount of such undisputed delinquency exceeds five percent 1 Delinquent notices as used in this Section 6, refer to notices issued to TWCIS (AL) by CenturyLink for unpaid, undisputed amounts. (5%) of the aggregate amount billed by CenturyTel CenturyLink to Charter TWCIS (AL) under this Agreement for the month in question; or 6.1.5 TWCIS (AL) (a) admits its inability to pay its debts as such debts become due, (b) has commenced a voluntary case (or has had an involuntary case commenced against it) under the U.S. Bankruptcy Code or any other law relating insolvency, reorganization, winding-up, composition or adjustment of debts or the like, (c) has made an assignment for the benefit of creditors, or (d) is subject to a receivership or similar proceeding. 6.2 If a deposit is required under Section 6.1 above, TWCIS (AL) shall remit the deposit amount to CenturyLink within thirty (30) calendar days of receipt of written notification requiring such deposit. If TWCIS (AL) fails to furnish the required deposit, CenturyLink may, at its sole discretion, suspend processing TWCIS (AL)’s orders until the deposit is remitted.