Common use of Standards Governing Initial Determinations of Creditworthiness Clause in Contracts

Standards Governing Initial Determinations of Creditworthiness. In addition to the creditworthiness requirements specified in the Third Party Supplier Agreement, if and only if Supplier is performing Consolidated Billing under this Agreement, the Company will determine whether Supplier is creditworthy. The Company shall make this determination in accordance with the guidelines set forth herein, subject to the Supplier’s right to submit to the Board for resolution any dispute concerning Company’s requirements if Supplier believes such requirements are inappropriately based or assessed. Company shall not be obligated to execute this Agreement until said dispute is resolved by a final, non-appealable Order of the Board. With respect to creditworthiness, Supplier must demonstrate that it has, and maintains, a minimum “BBB” or equivalent long term unsecured credit rating from Xxxxx’x Investors Service and Standard & Poor’s Rating Services. Supplier must also provide Company with its most recently independently-audited financial statements or, if Supplier is a publicly held firm, its most recent Form 10-K and Form 10-Q. On an ongoing basis, Supplier must continue to provide Company with updated versions of all of the above, as they become available. Specifically, updated financial statements or Form 10-Ks must be provided within ninety (90) days of fiscal year-ends, and updated Form 10-Qs must be provided within forty-five (45) days of the close of each quarter that does not coincide with the end of Supplier’s fiscal year. Company may make alternative credit arrangements with a Supplier that is unable to demonstrate creditworthiness based on its credit rating. Alternative credit arrangements may include any of the following: a. a guarantee of payment, satisfactory in form and substance to the Company, from a Guarantor that has, and maintains, a minimum “BBB” or equivalent long term unsecured credit rating from Xxxxx’x Investors Service and Standard & Poor’s Rating Services in an amount equal to sixty (60) days’ maximum estimated collection of all charges payable to Company from customers, as reasonably estimated by the Company; b. an irrevocable Letter of Credit, satisfactory in form and substance to the Company, issued by a bank or other financial institution that is acceptable to the Company, that has, and maintains, a minimum “A” or equivalent long term unsecured credit rating from Xxxxx’x Investors Service and Standard & Poor’s Rating Services in an amount equal to sixty (60) days’ maximum estimated collection of all Customer charges payable to Company, as reasonably estimated by the Company; c. a Surety Bond or Performance Bond, including the Company as a beneficiary, satisfactory in form and substance to the Company and enforceable in the event of bankruptcy and in the Company's access to recourse thereunder in all contexts under Section 5.1 of this Agreement (including bankruptcy), issued by a financial institution that is acceptable to the Company, that has, and maintains, a minimum “A” or equivalent long term unsecured credit rating from Xxxxx’x Investors Service and Standard & Poor’s Rating Services , in an amount equal to sixty (60) days’ maximum estimated collection of all Customer charges payable to Company, as reasonably estimated by the Company; d. a cash deposit in an amount equal to sixty (60) days’ maximum estimated collection of all Customer charges payable to Company, as reasonably estimated by the Company.