Common use of Security under Code Credit Rules Clause in Contracts

Security under Code Credit Rules. 3.4.1 Any instrument of surety or security provided by a User pursuant to paragraph 3.4.6 and the Code Credit Rules (and whether or not entered into by the User) shall not be a part of the Code nor an Ancillary Agreement; and no provision of or modification of the Code, nor any inconsistency between the Code and any such instrument, and nothing done by the Transporter pursuant to the Code, shall prejudice or invalidate any such instrument. 3.4.2 Where a User has provided surety or security pursuant to paragraph 3.4.6 and/or the Code Credit Rules the User (or the person giving the surety) may request the Transporter to release all or any of such security or agree to a reduction in any maximum amount of such surety. 3.4.3 Following a request by a User under paragraph 3.4.2, the Transporter will as soon as reasonably practicable and, except where the User also requests a review (by an agency appointed by the Transporter for such purposes) and revision of its Code Credit Limit, in any event not more than 10 Business Days after such request, release security, or agree to a reduction in surety, to such extent or by such amount as will permit the condition in paragraph 3.4.4 to be satisfied. 3.4.4 The condition referred to in paragraph 3.4.3 is that the amount of the User's Relevant Code Indebtedness at the date of such release or reduction is not more than 85% of the amount of the User's Code Credit Limit, determined in accordance with the Code Credit Rules on the basis of the release of security or reduction in surety (and taking account of any alternative surety or security provided by the User). 3.4.5 A User may (inter alia) provide security for the purposes of the Code Credit Rules in the form of a deposit in a bank account where: (a) the account is in the joint names of the User and the Transporter; (b) interest on the amount deposited in the account will accrue for the benefit of the User; (c) the User and the Transporter have irrevocably instructed the bank, in terms reasonably satisfactory to the Transporter and the User, to make payment to the Transporter of amounts (up to the amount deposited in the account) which have become due for payment to the Transporter (but having regard to the time at which pursuant to Section S4.2 payment is due where an Invoice Query has been raised) against reasonable evidence provided by the Transporter that payment of such amount has become due (but such instruction shall be without prejudice to any provision of Section S as to the payment of interest); (d) the bank shall have agreed that the amounts deposited in the account may not be set-off or otherwise applied by the bank in respect of any indebtedness of the User or other person; and (e) amounts (other than in respect of interest earned) standing to the credit of the account will not be paid to the User except with the Transporter's written agreement (but subject to paragraph 3.4.3). 3.4.6 A User may extend their level of exposure beyond the Unsecured Credit Limit by providing additional forms of security as detailed in the Code Credit Rules and in such form acceptable to the Transporter and/or in the form approved Letter of Credit or equivalent bank guarantee with a long-term issuer rating of not less than A2 by ▇▇▇▇▇’▇ Investors Service or equivalent rating by Standard and Poor’s (“Independent Security”). 3.4.7 For the purposes of Code:

Security under Code Credit Rules. 3.4.1 Any instrument of surety or security provided by a User pursuant to paragraph 3.4.6 and the Code Credit Rules (and whether or not entered into by the User) shall not be a part of the Code nor an Ancillary Agreement; and no provision of or modification of the Code, nor any inconsistency between the Code and any such instrument, and nothing done by the Transcothe Transporter pursuant to the Code, shall prejudice or invalidate any such instrument. 3.4.2 Where a User has provided surety or security pursuant to paragraph 3.4.6 and/or the Code Credit Rules the User (or the person giving the surety) may request the Transcothe Transporter to release all or any of such security or agree to a reduction in any maximum amount of such surety. 3.4.3 Following a request by a User under paragraph 3.4.2, the Transcothe Transporter will as soon as reasonably practicable and, except where the User also requests a review (by an agency appointed by the Transcothe Transporter for such purposes) and revision of its Code Credit Limit, in any event not more than 10 Business Days after such request, release security, or agree to a reduction in surety, to such extent or by such amount as will permit the condition in paragraph 3.4.4 to be satisfied. 3.4.4 The condition referred to in paragraph 3.4.3 is that the amount of the User's Relevant Code Indebtedness at the date of such release or reduction is not more than 85% of the amount of the User's Code Credit Limit, determined in accordance with the Code Credit Rules on the basis of the release of security or reduction in surety (and taking account of any alternative surety or security provided by the User). 3.4.5 A User may (inter alia) provide security for the purposes of the Code Credit Rules in the form of a deposit in a bank account where: (a) the account is in the joint names of the User and the Transcothe Transporter; (b) interest on the amount deposited in the account will accrue for the benefit of the User; (c) the User and the Transcothe Transporter have irrevocably instructed the bank, in terms reasonably satisfactory to the Transcothe Transporter and the User, to make payment to the Transcothe Transporter of amounts (up to the amount deposited in the account) which have become due for payment to the Transcothe Transporter (but having regard to the time at which pursuant to Section S4.2 payment is due where an Invoice Query has been raised) against reasonable evidence provided by the Transcothe Transporter that payment of such amount has become due (but such instruction shall be without prejudice to any provision of Section S as to the payment of interest); (d) the bank shall have agreed that the amounts deposited in the account may not be set-off or otherwise applied by the bank in respect of any indebtedness of the User or other person; and (e) amounts (other than in respect of interest earned) standing to the credit of the account will not be paid to the User except with the Transporter's written agreement (but subject to paragraph 3.4.3). 3.4.6 A User may extend their level of exposure beyond the Unsecured Credit Limit by providing additional forms of security as detailed in the Code Credit Rules and in such form acceptable to the Transporter and/or in the form approved Letter of Credit or equivalent bank guarantee with a long-term issuer rating of not less than A2 by ▇▇▇▇▇’▇ Investors Service or equivalent rating by Standard and Poor’s (“Independent Security”). 3.4.7 For the purposes of Code: