Credit Assurance Clause Samples
POPULAR SAMPLE Copied 1 times
Credit Assurance. In connection with entry into a Third Party Supplier Service Agreement (the “Service Agreement”), TPS’ financial obligations will be secured as follows (NJNG will notify TPS which option(s) are available to TPS):
(A) The TPS shall post an Initial Deposit, consisting of cash or letter of credit in the amount of $50,000 to serve RS customers and/or $25,000 to serve commercial customers including GSS, GSL, FT, DGC, CNG, NGV or IS customers. If the TPS initially plans to serve only RS customers, the Initial Deposit shall be in the amount of $50,000 and if that TPS later also serves commercial customers, an additional deposit of $25,000 shall be required for a total Initial Deposit of $75,000. If the TPS initially plans to serve only commercial customers, the Initial Deposit shall be in the amount of $25,000 and if that TPS later also serves RS customers, an additional deposit of $50,000 shall be required for a total Initial Deposit of $75,000. The total deposit provided by the TPS shall be the greater of:
a. the Initial Deposit; or
b. an amount equal to the total of:
i. at least three (3) times the estimated usage for one (1) day in January times the most current January’s price for Texas Eastern zone M-3 for any and all Customers on whose behalf the TPS is acting;
ii. for Customers using Billing Option 3 (as defined in NJNG’s Tariff), an additional amount equal to at least two (2) times the January delivery charges for each service classification for any and all Customers on whose behalf the TPS is acting; and
iii. the value of the TPS’s imbalance which is determined by multiplying the aggregate imbalance position for RS, GSS, GSL, DGC, and NGV residential customers on whose behalf the TPS is acting by the midpoint price of daily ranges for the applicable delivery zone that are published in Platts Gas Daily on the table, “Daily Price Survey.”
(B) The deposit held from the TPS will not bear interest. The TPS shall agree the Company has the right to access and apply the cash deposit or letter of credit to any payment obligations which are deemed to be late or in arrears. In lieu of a cash deposit or letter of credit from a TPS, the Company may, in its sole discretion, agree to accept a guaranty from such financially responsible parent or parent companies of the TPS for the payment of any liabilities or obligations to be incurred by the TPS. If any negative change in the financial condition of the guaranteeing party occurs, the Company reserves its right to requ...
Credit Assurance. Gatherer shall apply consistent evaluation practices to all similarly situated shippers to determine the new Shipper’s financial ability to perform its payment obligations under this Agreement.
(a) If Gatherer has reasonable grounds for insecurity regarding the performance of any obligation by Shipper under this Agreement (whether or not then due), Gatherer may demand Adequate Assurance of Performance from Shipper, which Adequate Assurance of Performance shall be provided to Gatherer within five (5) Days after written request. If Shipper fails to provide such Adequate Assurance of Performance within such time, then Gatherer may suspend its performance under this Agreement until such Adequate Assurance of Performance is provided. However, any action by Gatherer shall not relieve Shipper of its payment obligations. The exercise by Gatherer of any right under this Section 13.6 shall be without prejudice to any claims for damages or any other right under this Agreement. As used herein, “Adequate Assurance of Performance” means any of the following, in Gatherer’s reasonable discretion:
Credit Assurance. Processor shall apply consistent evaluation practices to all similarly situated producers to determine Producer’s financial ability to perform its payment obligations under this Agreement.
(a) If Processor has reasonable grounds for insecurity regarding the performance of any obligation by Producer under this Agreement (whether or not then due), Processor may demand Adequate Assurance of Performance from Producer, which Adequate Assurance of Performance shall be provided to Processor within five (5) Days after written request. If Producer fails to provide such Adequate Assurance of Performance within such time, then Processor may suspend its performance under this Agreement until such Adequate Assurance of Performance is provided. However, any action by Processor shall not relieve Producer of its payment obligations. The exercise by Processor of any right under this Section 13.6 shall be without prejudice to any claims for damages or any other right under this Agreement. As used herein, “Adequate Assurance of Performance” means any of the following, in Processor’s reasonable discretion:
Credit Assurance. The parties agree that the provisions of Article 2-609 shall apply to this Exhibit H.
Credit Assurance. The Seller and the Buyer agree that the Seller has the right to request and the Buyer shall upon such request provide the Seller with sufficient financial means in due time in order to assure the Seller of full payment of the Buyers' current and/or expected EXHIBIT "H" payment obligations.
4.3.1 The Seller's right to request credit assurance from the Buyer shall be limited to the following cases:
4.3.1.1 The Seller has received purchase orders from the Buyer for Initial Provisioning Materiel.
4.3.1.2 The Seller has received purchase and/or service orders exceeding the Buyer's average two (2) month turnover with the Seller.
4.3.1.3 The Buyer is indebted to the Seller for overdue invoices.
4.3.2 The Seller shall accept the following financial means as credit assurance:
4.3.2.1 Irrevocable and confirmed letter of credit, raised by banks of international standing and reputation. The conditions of such letter of credit shall be pertinent to Aircraft support activities and shall be set forth by the Seller.
4.3.2.2 Bank guarantee raised by banks of international standing and reputation. The conditions of such bank guarantee shall be mutually agreed upon prior to acceptance by the Seller.
4.3.2.3 Stand-by letter of credit raised by banks of international standing and reputation. The conditions of such letter of credit shall be mutually agreed upon prior to acceptance by the Seller.
Credit Assurance. (a) Unless otherwise agreed to by [***], if the Series is required to provide a guaranty, letter of credit or other credit support (each a “Credit Assurance”) to a counterparty under any contract or agreement (including an Approved Precedent Agreement) relating to a Facility approved by the Management Committee governing matters relating to such Facility prior to the In-Service Date of such Facility (each a “Subject Contract”), then each Member holding Membership Interests of the Series to which such Facility relates agrees to provide or cause to be provided (on behalf of the Series and within [***] Business Days of the Series’ request) to such counterparty the required form of Credit Assurance in an amount equal to the product of (i) the total dollar amount of the obligations for which the Series is required to provide such Credit Assurance, and (ii) such Member’s Sharing Ratio in respect of the applicable Series. As to any New Member, if at the time of admittance any Credit Assurance has been provided by the Members holding Membership Interests of the Series held by such New Member, then such New Member shall provide (on behalf of the Series and within [***] Business Days of the Series’ request) to the applicable counterparty such Credit Assurance in the same form and in an amount equal to the product of (1) the total dollar amount of obligations for which the Series is required to provide such Credit Assurance and (2) such New Member’s Sharing Ratio in respect of such Series. Any Credit Assurances posted by the then-current Members shall be reduced to reflect the New Member’s Credit Assurances and in accordance with such Member’s Sharing Ratio in respect of such Series.
(b) If a breach, default or other event occurs under a Subject Contract and the counterparty thereunder makes a demand or draw on one or more Credit Assurances for such breach, default or other event (a “Demand Event”), then a determination will be made as to the total dollar amount demanded or drawn by such counterparty for such Demand Event (“Total Event Demand Amount”). [***]
Credit Assurance. The Seller and the Buyer agree that the Seller has the right to request and the Buyer shall upon such request provide the Seller with sufficient financial means in due time in order to assure the Seller of full payment of the Buyer’s current and/or expected payment obligations.
Credit Assurance. Antero Water shall apply consistent evaluation practices to all similarly situated customers to determine Producer’s financial ability to perform its payment obligations under this Agreement.
(a) If Antero Water has reasonable grounds for insecurity regarding the performance of any obligation by Producer under this Agreement (whether or not then due), Antero Water may demand Adequate Assurance of Performance from Producer (which demand shall include reasonable particulars for the demand and documentation supporting the calculation of the amount demanded), which Adequate Assurance of Performance shall be provided to Antero Water within five (5) Business Days after such demand. If Producer fails to provide such Adequate Assurance of Performance within such time, then Antero Water may suspend its performance under this Agreement until such Adequate Assurance of Performance is provided. However, any such suspension by Antero Water shall not relieve Producer of its payment obligations. The exercise by Antero Water of any right under this Section 14.6 shall be without prejudice to any claims for damages or any other right of Antero Water under this Agreement. As used herein, “Adequate Assurance of Performance” means any of the following, as selected in Producer’s discretion subject to the below:
Credit Assurance. 14.1 Each Party acknowledges and agrees that the other Party’s credit as of the date of this Agreement is satisfactory. In the event a material adverse change occurs in a Party’s credit (the “Affected Party”) and the other Party (the “Requesting Party”) determines the Affected Party’s credit to be unsatisfactory in Requesting Party’s sole and reasonable opinion at any time during the term of this Agreement, the Requesting Party may demand “Adequate Assurance of Performance” from such Affected Party which shall mean sufficient security in an amount and for a term reasonably specified by the Requesting Party; provided, however, in no event shall the amount of such security exceed the greater of (i) the amount owed hereunder by such Affected Party for the most recent two (2) Months, or (ii) the amount estimated by the Requesting Party in good faith to be owed hereunder by such Affected Party for the next succeeding two (2) Months based on deliveries by Shipper equal to the SRC. Such Affected Party at its option may then provide one of the following forms of security:
(a) Provide a written guaranty of payment from an Affiliate with credit satisfactory to the Requesting Party with such guaranty of payment to be provided in a form and for a term acceptable to the Requesting Party, but such guaranty of payment shall constitute Adequate Assurance of Performance only for as long as the credit of the Affiliate continues to be satisfactory to the Requesting Party;
(b) Post an irrevocable standby letter of credit in a reasonably satisfactory form and from a bank satisfactory to the Requesting Party; or,
(c) Provide a prepayment or a deposit.
14.2 Should such Affected Party fail to provide Adequate Assurance of Performance within two (2) Business Days after receipt of written demand for such assurance, then the Requesting Party shall have the right to suspend performance under this Agreement until such time as such Affected Party furnishes Adequate Assurance of Performance. If such assurance is not provided by such Affected Party within ten (10) Business Days from written demand, the Requesting Party may terminate this Agreement in addition to having any and all other remedies available hereunder, at law or in equity.
Credit Assurance. 14.1 In the event Gatherer determines Shipper’s credit to be unsatisfactory in Gatherer’s sole opinion, at any time during the term of this Agreement, Gatherer may demand "Adequate Assurance of Performance" which shall mean sufficient security in a form, an amount and for the term reasonably specified by Gatherer. Shipper at its option may then provide one of the following forms of security:
(a) Post an irrevocable standby letter of credit in a form and from a bank satisfactory to Gatherer ;
(b) Provide a prepayment or a deposit;
14.2 If the credit of Shipper’s guarantor is deemed to be satisfactory in Gatherer’s sole opinion, the demand for Adequate Assurance of Performance can be satisfied with a guarantee issued on behalf of Shipper in a form, amount and tenor acceptable to Gatherer, but only for as long as the credit of Shipper’s guarantor continues to be acceptable to Gatherer.
14.3 Should Shipper or its guarantor fail to provide Adequate Assurance of Performance within two (2) business Days after receipt of written demand for such assurance, then Gatherer shall have the right to suspend performance under this Agreement until such time as Shipper furnishes Adequate Assurance of Performance. If such assurance is not provided by Shipper within ten (10) Days from written demand, Gatherer may terminate this Agreement in addition to having any and all other remedies available hereunder, at law or in equity.