CREDITWORTHINESS OF SHIPPER. Transporter's obligation to perform hereunder is contingent upon Shipper's reciprocal obligation to pay for the services contemplated hereunder in a timely fashion. Prior to commencement of service, or at any time thereafter, Transporter may require Shipper to supply Transporter with credit information including, but not limited to, bank references, financial statements and/or names of persons with whom Shipper has recently transacted business in order that Transporter may make reasonable inquiry into Shipper's creditworthiness and obtain adequate assurance of Shipper's solvency and ability to perform. Only if, during the Primary Term or any other term of this Agreement, Shipper fails to pay all monies due under this Agreement within the time frame and in the manner set forth at Article XVI, then Transporter may take any, or a combination, of the following actions: suspend performance of future service pending assurance of payments, demand security for payment, require payment in cash or on a more frequent basis than a Monthly billing cycle, terminate this Agreement pursuant to Section 16.2, or take such other action as is reasonable under the circumstances to protect Transporter's interests, all in Transporter's sole opinion, including requiring Shipper to immediately provide Transporter with an irrevocable standby letter of credit in an amount and in a form acceptable to Transporter and from an institution acceptable to Transporter.
CREDITWORTHINESS OF SHIPPER. (a) Subject to the provisions of paragraphs (b) and (c) immediately below, Transporter will not be required to provide or to continue to provide service on behalf of any Shipper that (i) is or has become insolvent, (ii) has applied for bankruptcy under Chapter 11 of the bankruptcy code or is subject to similar proceedings under state or federal law, or (iii) fails, in Transporter's reasonable judgment, to demonstrate minimal creditworthiness for all or any part of the service requested, based upon Transporter's consideration of available credit data concerning Shipper and Xxxxxxx's past payment history, financial statements, and credit reports.
