Assurance of Payment. 7.1 Upon request by SBC-13STATE, CLEC will provide SBC-13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE. 7.2 Assurance of payment may be requested by SBC-12STATE if: 7.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for charges incurred as a CLEC; or 7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafter, there has been an impairment of the established credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from financial sources, including but not limited to Moody's, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or 7.2.3 CLEC fails to timely pay a bill rendered to CLEC by SBC-12STATE (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.3); or 7.2.4 CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding. 7.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATE’s option, consist of 7.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE (“Cash Deposit”) or
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 Upon request by SBC-13STATE, CLEC will provide SBC-13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE.
SBC- 13STATE in accordance with the terms of this Section. 7.2 Assurance of payment may be requested by SBC-12STATE if:
7.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for charges incurred as a CLEC; or
7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafter, there has been an significant impairment of the established credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from financial sources, including but not limited to Moody'sXxxxx'x, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 CLEC fails to timely pay a bill xxxx rendered to CLEC by SBC-12STATE (except such portion of a bill xxxx that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.3); or) within seven (7) business days after CLEC receives notice of late payment from SBC-12STATE;
7.2.4 CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 Unless otherwise agreed by 7.2.5 So long as CLEC maintains timely compliance with its payment obligations, SBC-12STATE will not increase the Partiesdeposit amount required. If CLEC fails to maintain timely compliance with its payment obligations, SBC–12STATE reserves the assurance of payment will, at SBC- 12STATE’s option, consist of 7.3.1 a cash security deposit right to require additional deposit(s) in U.S. dollars held by SBC-12STATE (“Cash Deposit”) oraccordance with this Section 7.
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 3.1 Upon request by SBC-13STATESBC MISSOURI, CLEC will provide SBC-13STATE SBC MISSOURI with adequate assurance of payment of amounts due (or to become due) to SBC-13STATESBC MISSOURI.
7.2 3.2 Assurance of payment may be requested by SBC-12STATE SBC MISSOURI if:
7.2.1 3.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at a least twelve (12) consecutive months of timely payments to SBC-13STATE SBC MISSOURI for charges incurred as a CLEC; oror where CLEC is doing or has done business as a local service provider,
7.2.2 3.2.2 in SBC-12STATESBC MISSOURI’s reasonable judgment, at the Effective Date or at any time thereafter, there has been an impairment of the established credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from financial sources, including but not limited to Moody'sXxxxx'x, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 3.2.3 CLEC fails to timely pay a bill xxxx rendered to CLEC by SBC-12STATE SBC MISSOURI (except such portion of a bill xxxx that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.39.4); or
7.2.4 3.2.4 CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 3.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATESBC MISSOURI’s option, consist of 7.3.1 of:
3.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE SBC MISSOURI (“Cash Deposit”) or
3.3.2 an unconditional, irrevocable standby bank letter of credit from a financial institution acceptable to SBC MISSOURI naming SBC MISSOURI as the beneficiary thereof and otherwise in form and substance satisfactory to SBC MISSOURI (“Letter of Credit”).
3.4 The Cash Deposit or Letter of Credit must be in an amount equal to three (3) months anticipated charges (including, but not limited to, recurring, non-recurring and usage sensitive charges, termination charges and advance payments), as reasonably determined by SBC MISSOURI, for the Interconnection, Resale Services, Lawful Unbundled Network Elements, Collocation or any other functions, facilities, products or services to be furnished by SBC MISSOURI under this Agreement.
3.5 To the extent that SBC MISSOURI elects to require a Cash Deposit, the Parties intend that the provision of such Cash Deposit shall constitute the grant of a security interest in the Cash Deposit pursuant to Article 9 of the Uniform Commercial Code in effect in any relevant jurisdiction.
3.6 A Cash Deposit will accrue simple interest, however, SBC MISSOURI will not pay interest on a Letter of Credit.
3.7 SBC MISSOURI may, but is not obligated to, draw on the Letter of Credit or the Cash Deposit, as applicable, upon the occurrence of any one of the following events:
3.7.1 CLEC owes SBC MISSOURI undisputed charges under this Agreement that are more than thirty (30) calendar days past due; or
3.7.2 CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding; or
3.7.3 The expiration or termination of this Agreement.
3.8 If SBC MISSOURI draws on the Letter of Credit or Cash Deposit, upon request by SBC MISSOURI, CLEC will provide a replacement or supplemental letter of credit or cash deposit conforming to the requirements of Section 3.4.
3.9 Notwithstanding anything else set forth in this Agreement, if SBC MISSOURI makes a request for assurance of payment in accordance with the terms of this Section, then SBC MISSOURI shall have no obligation thereafter to perform under this Agreement until such time as CLEC has furnished SBC MISSOURI with the assurance of payment requested; provided, however, that SBC MISSOURI will permit CLEC a minimum of ten (10) Business Days to respond to a request for assurance of payment before invoking this Section.
3.9.1 If CLEC fails to furnish the requested adequate assurance of payment on or before the date set forth in the request, SBC MISSOURI may also invoke the provisions set forth in Section 14.
3.10 The fact that a Cash Deposit or Letter of Credit is requested by SBC MISSOURI shall in no way relieve CLEC from timely compliance with all payment obligations under this Agreement (including, but not limited to, recurring, non-recurring and usage sensitive charges, termination charges and advance payments), nor does it constitute a waiver or modification of the terms of this Agreement pertaining to disconnection or re-entry for non-payment of any amounts required to be paid hereunder.
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 Upon request by SBC-13STATE, CLEC will provide SBC-13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE.
7.2 Assurance of payment may be requested by SBC-12STATE if:
7.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for charges incurred as a CLEC; or
7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafter, there has been an impairment of the established credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from financial sources, including but not limited to Moody'sXxxxx'x, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 CLEC fails to timely pay a bill xxxx rendered to CLEC by SBC-12STATE (except such portion of a bill xxxx that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.3); or
7.2.4 CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATESBC-12STATE’s option, consist of of
7.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE (“Cash Deposit”) or
7.3.2 an unconditional, irrevocable standby bank letter of credit from a financial institution acceptable to SBC-12STATE naming the SBC-owned ILEC(s) designated by SBC-12STATE as the beneficiary(ies) thereof and otherwise in form and substance satisfactory to SBC-12STATE (“Letter of Credit”).
7.3.3 The Cash Deposit or Letter of Credit must be in an amount equal to three (3) months anticipated charges (including, but not limited to, recurring, non-recurring and usage sensitive charges, termination charges and advance payments), as reasonably determined by SBC-12STATE, for the Interconnection, Resale Services, Lawful Unbundled Network Elements, Collocation or any other functions, facilities, products or services to be furnished by SBC-12STATE under this Agreement.
7.3.3.1 Notwithstanding anything else set forth in this Agreement, SBC SOUTHWEST REGION 5-STATE will not request assurance of payment of charges reasonably anticipated by SBC SOUTHWEST REGION 5-STATE to be incurred in Arkansas in an amount that would exceed one (1) month’s projected xxxx for CLEC’s initial market entry; provided, however, that after three (3) months of operation, SBC SOUTHWEST REGION 5-STATE may request assurance of payment of charges reasonably anticipated by SBC SOUTHWEST REGION 5-STATE to be incurred in Arkansas in an amount not to exceed two times projected average monthly billing to CLEC.
7.3.3.2 Notwithstanding anything else set forth in this Agreement, SBC SOUTHWEST REGION 5-STATE will not request assurance of payment of charges reasonably anticipated by SBC SOUTHWEST REGION 5-STATE to be incurred in Oklahoma in an amount that would exceed two times projected average monthly billing to CLEC.
7.4 To the extent that SBC-12STATE elects to require a Cash Deposit, the Parties intend that the provision of such Cash Deposit shall constitute the grant of a security interest in the Cash Deposit pursuant to Article 9 of the Uniform Commercial Code in effect in any relevant jurisdiction.
7.5 A Cash Deposit will accrue interest, however, SBC-12STATE will not pay interest on a Letter of Credit.
7.6 SBC-12STATE may, but is not obligated to, draw on the Letter of Credit or the Cash Deposit, as applicable, upon the occurrence of any one of the following events:
7.6.1 CLEC owes SBC-12STATE undisputed charges under this Agreement that are more than thirty
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 Upon request by SBC-13STATE, CLEC will provide SBC-13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE.
7.2 Assurance of payment may be requested by SBC-12STATE if:
7.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for charges incurred as a CLEC; or
7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafter, there has been an impairment of the established credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from financial sources, including but not limited to Moody'sXxxxx'x, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 CLEC fails to timely pay a bill rendered to CLEC by SBC-12STATE (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.3); or
7.2.4 CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATESBC-12STATE’s option, consist of of
7.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE (“Cash Deposit”) or
7.3.2 an unconditional, irrevocable standby bank letter of credit from a financial institution acceptable to SBC-12STATE naming the SBC owned ILEC(s) designated by SBC-12STATE as the beneficiary(ies) thereof and otherwise in form and substance satisfactory to SBC-12STATE (“Letter of Credit”).
7.3.3 The Cash Deposit or Letter of Credit must be in an amount equal to three (3) months anticipated charges (including, but not limited to, recurring, non-recurring and usage sensitive charges, termination charges and advance payments), as reasonably determined by SBC-12STATE, for the Interconnection, Resale Services, Network Elements, Collocation or any other functions, facilities, products or services to be furnished by SBC-12STATE under this Agreement.
7.3.3.1 Notwithstanding anything else set forth in this Agreement, SBC-SWBT will not request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Arkansas in an amount that would exceed one (1) month’s projected bill for CLEC’s initial market entry; provided, however, that after three (3) months of operation, SBC- SWBT may request assurance of payment of charges reasonably anticipated by SBC- SWBT to be incurred in Arkansas in an amount not to exceed two times projected average monthly billing to CLEC.
7.3.3.2 Notwithstanding anything else set forth in this Agreement, SBC-SWBT will not request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Oklahoma in an amount that would exceed two times projected average monthly billing to CLEC.
7.4 To the extent that SBC-12STATE elects to require a Cash Deposit, the Parties intend that the provision of such Cash Deposit shall constitute the grant of a security interest in the Cash Deposit pursuant to Article 9 of the Uniform Commercial Code in effect in any relevant jurisdiction.
7.5 A Cash Deposit will accrue interest at the rate of six percent (6%) simple interest per annum. Interest will accrue on a Cash Deposit from the day after it is received by SBC-12STATE through the day immediately prior to the date the Cash Deposit is credited to XXXX’x xxxx(s) or returned to CLEC. SBC-12STATE will not pay interest on a Letter of Credit.
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 Upon request by SBC-13STATE, CLEC will provide SBC-13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE.
7.2 Assurance of payment may be requested by SBC-12STATE if:
7.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for charges incurred as a CLEC; or
7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafter, there has been an impairment of the established credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from financial sources, including but not limited to Moody's, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 CLEC fails to timely pay a bill rendered to CLEC by SBC-12STATE (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.3); or
7.2.4 CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATESBC-12STATE’s option, consist of of
7.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE (“Cash Deposit”) or
7.3.2 an unconditional, irrevocable standby bank letter of credit from a financial institution acceptable to SBC-12STATE naming the SBC owned ILEC(s) designated by SBC-12STATE as the beneficiary(ies) thereof and otherwise in form and substance satisfactory to SBC-12STATE (“Letter of Credit”).
7.3.3 The Cash Deposit or Letter of Credit must be in an amount equal to three (3) months anticipated charges (including, but not limited to, recurring, non-recurring and usage sensitive charges, termination charges and advance payments), as reasonably determined by SBC-12STATE, for the Interconnection, Resale Services, Network Elements, Collocation or any other functions, facilities, products or services to be furnished by SBC-12STATE under this Agreement.
7.3.3.1 Notwithstanding anything else set forth in this Agreement, SBC-SWBT will not request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Arkansas in an amount that would exceed one (1) month’s projected bill for CLEC’s initial market entry; provided, however, that after three (3) months of operation, SBC-SWBT may request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Arkansas in an amount not to exceed two times projected average monthly billing to CLEC.
7.3.3.2 Notwithstanding anything else set forth in this Agreement, SBC-SWBT will not request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Oklahoma in an amount that would exceed two times projected average monthly billing to CLEC.
7.4 To the extent that SBC-12STATE elects to require a Cash Deposit, the Parties intend that the provision of such Cash Deposit shall constitute the grant of a security interest in the Cash Deposit pursuant to Article 9 of the Uniform Commercial Code in effect in any relevant jurisdiction.
7.5 A Cash Deposit will accrue interest at the rate of six percent (6%) simple interest per annum. Interest will accrue on a Cash Deposit from the day after it is received by SBC-12STATE through the day immediately prior to the date the Cash Deposit is credited to XXXX’x xxxx(s) or returned to CLEC. SBC-12STATE will not pay interest on a Letter of Credit.
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 Upon request by SBC-13STATE, CLEC will provide SBC-13STATE SBC- 13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE.
7.2 Assurance of payment may be requested by SBC-12STATE if:
7.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for charges incurred as a CLEC; or
7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafter, there has been an impairment of the established credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from financial sources, including but not limited to Moody'sXxxxx'x, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 CLEC fails to timely pay a bill two bills in 12 months rendered to CLEC by SBC-12STATE (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.3); or
7.2.4 CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATESBC-12STATE’s option, consist of of
7.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE SBC- 12STATE (“Cash Deposit”) or
7.3.2 an unconditional, irrevocable standby bank letter of credit from a financial institution acceptable to SBC-12STATE naming the SBC owned ILEC(s) designated by SBC- 12STATE as the beneficiary(ies) thereof and otherwise in form and substance satisfactory to SBC-12STATE (“Letter of Credit”).
7.3.3 The Cash Deposit or Letter of Credit must be in an amount equal to two (2) months anticipated charges (including, but not limited to, recurring, non-recurring and usage sensitive charges, termination charges and advance payments), as reasonably determined by SBC-12STATE, for the Interconnection, Resale Services, Network Elements, Collocation or any other functions, facilities, products or services to be furnished by SBC-12STATE under this Agreement.
7.3.3.1 Notwithstanding anything else set forth in this Agreement, SBC-AMERITECH will not request assurance of payment of charges reasonably anticipated by SBC- AMERITECH to be incurred in Ohio in an amount that would exceed 230% of projected average monthly billing to CLEC.
7.3.3.2 Notwithstanding anything else set forth in this Agreement, SBC-SWBT will not request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Arkansas in an amount that would exceed one
(1) month’s projected bill for CLEC’s initial market entry; provided, however, that after three (3) months of operation, SBC-SWBT may request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Arkansas in an amount not to exceed two times projected average monthly billing to CLEC.
7.3.3.3 Notwithstanding anything else set forth in this Agreement, SBC-SWBT will not request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Oklahoma in an amount that would exceed two times projected average monthly billing to CLEC.
7.4 To the extent that SBC-12STATE elects to require a Cash Deposit, the Parties intend that the provision of such Cash Deposit shall constitute the grant of a security interest in the Cash Deposit pursuant to Article 9 of the Uniform Commercial Code in effect in any relevant jurisdiction.
7.5 A Cash Deposit will accrue interest at the rate of six percent (6%) simple interest per annum. Interest will accrue on a Cash Deposit from the day after it is received by SBC-12STATE through the day immediately prior to the date the Cash Deposit is credited to XXXX’x xxxx(s) or returned to CLEC. SBC-12STATE will not pay interest on a Letter of Credit.
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 Upon request by SBC-13STATE, in accordance with this provision, CLEC will provide SBC-13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE.
7.2 Assurance of payment may be requested by SBC-12STATE if:
7.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for undisputed charges and/or appropriate escrow payments pursuant to Section 8 for disputed charges incurred as a CLEC; by CLEC or
7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafteron or after the Effective Date, there has been an impairment of the established credit, financial health, or credit worthiness of CLECCLEC as compared to its status on August 1, 2004. Such impairment will be determined from information available from financial sources, including but not limited to Moody's, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 CLEC fails to timely pay a bill rendered to CLEC by SBC-12STATE (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.3); ) or
7.2.4 to the extent consistent with applicable law, CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATECLEC’s option, consist of of:
7.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE (“Cash Deposit”) or
7.3.2 an unconditional, irrevocable standby bank letter of credit from a financial institution acceptable to SBC-12STATE naming the SBC owned ILEC(s) designated by SBC-12STATE as the beneficiary(ies) thereof and otherwise in form and substance satisfactory to SBC-12STATE (“Letter of Credit”).
7.3.3 The Cash Deposit or Letter of Credit must be in an amount equal to three
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 Upon request by SBC-13STATE, CLEC will provide SBC-13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE.
7.2 Assurance of payment may be requested by SBC-12STATE if:
7.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for charges incurred as a CLEC; or
7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafter, there has been an impairment of the established credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from financial sources, including but not limited to Moody'sXxxxx'x, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 CLEC fails to timely pay a bill rendered to CLEC by SBC-12STATE (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.3); or
7.2.4 CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATESBC-12STATE’s option, consist of of
7.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE (“Cash Deposit”) or
7.3.2 an unconditional, irrevocable standby bank letter of credit from a financial institution acceptable to SBC-12STATE naming the SBC owned ILEC(s) designated by SBC-12STATE as the beneficiary(ies) thereof and otherwise in form and substance satisfactory to SBC- 12STATE (“Letter of Credit”).
7.3.3 The Cash Deposit or Letter of Credit must be in an amount equal to three (3) months anticipated charges (including, but not limited to, recurring, non-recurring and usage sensitive charges, termination charges and advance payments), as reasonably determined by SBC- 12STATE, for the Interconnection, Resale Services, Network Elements, Collocation or any other functions, facilities, products or services to be furnished by SBC-12STATE under this Agreement.
7.3.3.1 Notwithstanding anything else set forth in this Agreement, SBC-SWBT will not request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Arkansas in an amount that would exceed one (1) month’s projected bill for CLEC’s initial market entry; provided, however, that after three (3) months of operation, SBC-SWBT may request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Arkansas in an amount not to exceed two times projected average monthly billing to CLEC.
7.3.3.2 Notwithstanding anything else set forth in this Agreement, SBC-SWBT will not request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Oklahoma in an amount that would exceed two times projected average monthly billing to CLEC.
7.4 To the extent that SBC-12STATE elects to require a Cash Deposit, the Parties intend that the provision of such Cash Deposit shall constitute the grant of a security interest in the Cash Deposit pursuant to Article 9 of the Uniform Commercial Code in effect in any relevant jurisdiction.
7.5 A Cash Deposit will accrue interest at the rate of six percent (6%) simple interest per annum. Interest will accrue on a Cash Deposit from the day after it is received by SBC-12STATE through the day immediately prior to the date the Cash Deposit is credited to XXXX’x xxxx(s) or returned to CLEC. SBC- 12STATE will not pay interest on a Letter of Credit.
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 Upon request by SBC-13STATE, CLEC in accordance with this provision, LEVEL 3 will provide SBC-13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE.
7.2 Assurance of payment may be requested by SBC-12STATE if:
7.2.1 at the Effective Date CLEC LEVEL 3 had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for undisputed charges and/or appropriate escrow payments pursuant to Section 8 for disputed charges incurred as a CLEC; by LEVEL 3 or
7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafteron or after the Effective Date, there has been an impairment of the established credit, financial health, or credit worthiness of CLECLEVEL 3 as compared to its status on August 1, 2004. Such impairment will be determined from information available from financial sources, including but not limited to Moody's, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC LEVEL 3 that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 CLEC LEVEL 3 fails to timely pay a bill rendered to CLEC LEVEL 3 by SBC-12STATE (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC LEVEL 3 has complied with all requirements set forth in Section 9.3); ) or
7.2.4 CLEC to the extent consistent with applicable law, LEVEL 3 admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATELEVEL 3’s option, consist of of:
7.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE (“Cash Deposit”) or
7.3.2 an unconditional, irrevocable standby bank letter of credit from a financial institution acceptable to SBC-12STATE naming the SBC owned ILEC(s) designated by SBC-12STATE as the beneficiary(ies) thereof and otherwise in form and substance satisfactory to SBC-12STATE (“Letter of Credit”).
7.3.3 The Cash Deposit or Letter of Credit must be in an amount equal to three (3) months anticipated charges (including, but not limited to, recurring, non- recurring and usage sensitive charges, termination charges and advance payments), as reasonably determined by SBC-12STATE, for the Interconnection, Resale Services, Network Elements, Collocation or any other functions, facilities, products or services to be furnished by SBC-12STATE under this Agreement. Where LEVEL 3 has actual xxxxxxxx from SBC- 12STATE for such functions, facilities, products or services under this Agreement for the three (3) months prior to SBC-12STATE’s request for a deposit, the actual amount of those xxxxxxxx shall be used as the deposit amount.
7.3.3.1 Notwithstanding anything else set forth in this Agreement, SBC SOUTHWEST REGION 5-STATE will not request assurance of payment of charges reasonably anticipated by SBC SOUTHWEST REGION 5-STATE to be incurred in Arkansas in an amount that would exceed one (1) month’s projected bill for LEVEL 3’s initial market entry; provided, however, that after three (3) months of operation, SBC SOUTHWEST REGION 5-STATE may request assurance of payment of charges reasonably anticipated by SBC SOUTHWEST REGION 5-STATE to be incurred in Arkansas in an amount not to exceed two times projected average monthly billing to LEVEL 3, which shall be determined when possible by reference to actual xxxxxxxx from SBC SOUTHWEST REGION 5-STATE to LEVEL 3 for functions, facilities, products or services provided under this Agreement for the two (2) months prior to SBC SOUTHWEST REGION 5-STATE’s request.
7.3.3.2 Notwithstanding anything else set forth in this Agreement, SBC SOUTHWEST REGION 5-STATE will not request assurance of payment of charges reasonably anticipated by SBC SOUTHWEST REGION 5-STATE to be incurred in Oklahoma in an amount that would exceed two times projected average monthly billing to LEVEL 3.
7.4 To the extent that LEVEL 3 elects to provide a Cash Deposit, the Parties intend that the provision of such Cash Deposit shall constitute the grant of a security interest in the Cash Deposit pursuant to Article 9 of the Uniform Commercial Code in effect in any relevant jurisdiction.
7.5 A Cash Deposit will accrue interest at the rate established by the respective state commission. Interest will accrue on a Cash Deposit from the day after it is received by SBC-12STATE through the day immediately prior to the date the Cash Deposit is credited to LEVEL 3’s bill(s) or returned to LEVEL 3. SBC-12STATE will not pay interest on a Letter of Credit.
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 Upon request by SBC-13STATE, CLEC will provide SBC-13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE.
7.2 Assurance of payment may be requested by SBC-12STATE if:
7.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for charges incurred as a CLEC; or
7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafter, there has been an impairment of the established credit, financial health, or credit worthiness of CLEC. Such impairment will be determined from information available from financial sources, including but not limited to Moody'sXxxxx'x, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 CLEC fails to timely pay a bill xxxx rendered to CLEC by SBC-12STATE (except such portion of a bill xxxx that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.3); or
7.2.4 CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATESBC-12STATE’s option, consist of of
7.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE (“Cash Deposit”) or
7.3.2 an unconditional, irrevocable standby bank letter of credit from a financial institution acceptable to SBC-12STATE naming the SBC owned ILEC(s) designated by SBC-12STATE as the beneficiary(ies) thereof and otherwise in form and substance satisfactory to SBC-12STATE (“Letter of Credit”).
7.3.3 The Cash Deposit or Letter of Credit must be in an amount equal to three (3) months anticipated charges (including, but not limited to, recurring, non-recurring and usage sensitive charges, termination charges and advance payments), as reasonably determined by SBC-12STATE, for the Interconnection, Resale Services, Network Elements, Collocation or any other functions, facilities, products or services to be furnished by SBC-12STATE under this Agreement.
7.3.3.1 Notwithstanding anything else set forth in this Agreement, SBC-SWBT will not request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Arkansas in an amount that would exceed one (1) month’s projected xxxx for CLEC’s initial market entry; provided, however, that after three (3) months of operation, SBC- SWBT may request assurance of payment of charges reasonably anticipated by SBC- SWBT to be incurred in Arkansas in an amount not to exceed two times projected average monthly billing to CLEC.
7.3.3.2 Notwithstanding anything else set forth in this Agreement, SBC-SWBT will not request assurance of payment of charges reasonably anticipated by SBC-SWBT to be incurred in Oklahoma in an amount that would exceed two times projected average monthly billing to CLEC.
7.4 To the extent that SBC-12STATE elects to require a Cash Deposit, the Parties intend that the provision of such Cash Deposit shall constitute the grant of a security interest in the Cash Deposit pursuant to Article 9 of the Uniform Commercial Code in effect in any relevant jurisdiction.
7.5 A Cash Deposit will accrue interest at the rate of six percent (6%) simple interest per annum. Interest will accrue on a Cash Deposit from the day after it is received by SBC-12STATE through the day immediately prior to the date the Cash Deposit is credited to XXXX’x xxxx(s) or returned to CLEC. SBC-12STATE will not pay interest on a Letter of Credit.
Appears in 1 contract
Samples: Interconnection Agreement
Assurance of Payment. 7.1 Upon request by SBC-13STATE, in accordance with this provision, CLEC will provide SBC-13STATE with adequate assurance of payment of amounts due (or to become due) to SBC-13STATE.
7.2 Assurance of payment may be requested by SBC-12STATE if:
7.2.1 at the Effective Date CLEC had not already established satisfactory credit by having made at least twelve (12) consecutive months of timely payments to SBC-13STATE for undisputed charges and/or appropriate escrow payments pursuant to Section 8 for disputed charges incurred as a CLEC; by CLEC or
7.2.2 in SBC-12STATE’s reasonable judgment, at the Effective Date or at any time thereafteron or after the Effective Date, there has been an impairment of the established credit, financial health, or credit worthiness of CLECCLEC as compared to its status on August 1, 2004. Such impairment will be determined from information available from financial sources, including but not limited to Moody's, Standard and Poor's, and the Wall Street Journal. Financial information about CLEC that may be considered includes, but is not limited to, investor warning briefs, rating downgrades, and articles discussing pending credit problems; or
7.2.3 CLEC fails to timely pay a bill rendered to CLEC by SBC-12STATE (except such portion of a bill that is subject to a good faith, bona fide dispute and as to which CLEC has complied with all requirements set forth in Section 9.3); ) or
7.2.4 to the extent consistent with applicable law, CLEC admits its inability to pay its debts as such debts become due, 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 to insolvency, reorganization, winding-up, composition or adjustment of debts or the like, has made an assignment for the benefit of creditors or is subject to a receivership or similar proceeding.
7.3 Unless otherwise agreed by the Parties, the assurance of payment will, at SBC- 12STATE’s option, consist of 7.3.1 a cash security deposit in U.S. dollars held by SBC-12STATE (“Cash Deposit”) or
Appears in 1 contract
Samples: Interconnection Agreement
