Deposits and Other Security. A Party (the “Requesting Party”) may require the other Party (the “Providing Party”) to provide a deposit (or additional deposit if an initial deposit was also required), letter of credit, or other form of credit assurance reasonably acceptable to the Requesting Party (collectively, “Performance Assurance”) during the Term of this Agreement if: (i) the Requesting Party determines in its reasonable discretion that there has been a material adverse change in the Providing Party’s or its guarantor’s (if applicable) credit status or financial condition (which, if applicable, will mean that its credit or bond rating has dropped lower than BBB- by Standard & Poor’s Rating Group or Baa3 by Xxxxx’x Investor Services or ceases to be rated by either of these agencies); or (ii) Customer has been delinquent in paying the electric bill by more than seven days more than twice during the past twelve months. Any Performance Assurance, less any outstanding balance owed by Providing Party to the Requesting Party, will be returned to the Providing Party once the Providing Party’s or its guarantor’s (if applicable) credit or financial condition becomes satisfactory or, if applicable, to a credit or bond rating of BBB- or Baa3 or higher, whichever occurs earlier; or, if the Performance Assurance relates to delinquent payments, the Providing Party has paid all outstanding balances and has made all payments within the dates set forth in this Agreement for a period of six consecutive months.
Deposits and Other Security. Using its credit management standards, AT&T has assessed the initial deposit amount or other security as specified on the Cover Sheet (the “Initial Security”). CUSTOMER shall provide the Initial Security before Services are provided. AT&T may require CUSTOMER, during the term of this Agreement, to provide a deposit or other security in an amount to be determined by AT&T in its reasonable discretion (the “Subsequent Security”.) (The Initial Security and the Subsequent Security are referred to, as applicable, as the “Security”). AT&T will rely upon commercially reasonable factors to determine the need for and amount of any Security. These factors may include, but are not limited to, payment history, number of years in business, history of service with AT&T, bankruptcy history, current account treatment status, financial statement analysis, and commercial credit bureau rating, as well as commitment levels and anticipated monthly charges. Any Security will be held by AT&T as a guarantee for the payment of charges. Provision of Security does not relieve CUSTOMER of the responsibility for the prompt payment of bills. Interest (at the rate of 6% per year or such other rate as is applicable by law) will be paid to CUSTOMER for any period that a cash deposit is held by AT&T. AT&T may apply a deposit against past due charges at any time. AT&T may set-off amounts payable to CUSTOMER or its Affiliates under this or other agreements against any amounts due to AT&T under this Agreement.
