Unsecured Credit definition
Examples of Unsecured Credit in a sentence
In no circumstances shall the Contracting Retailer be entitled to combine the Alternative Unsecured Allowance with the Unsecured Credit Allowance and/or any Other Unsecured Arrangement.
If during the term of the Agreement, Seller’s or Seller’s Guarantor’s Credit Rating changes, by either being upgraded or downgraded by any of the rating agencies referenced in Section 14.3 (Unsecured Credit) of the Agreement, the Seller shall be required to provide written notice to Buyer of such Credit Rating change no later than two (2) Business Days after the date of such change.
If during the term of the Agreement, Seller’s or Seller’s Guarantor’s, if applicable, Credit Rating changes, by either being upgraded or downgraded by any of the rating agencies referenced in Section 14.3 (Unsecured Credit) of the Agreement, the Seller shall be required to provide written notice to Buyer of such Credit Rating change no later than two (2) Business Days after the date of such change.
With respect to Aggregate Transactions, if at any time and from time to time during the term of this Agreement, Aggregate Buyer’s Exposure exceeds the Unsecured Credit on any Business Day, then Buyer shall request that Seller post Performance Assurance in an amount equal to the amount by which Aggregate Buyer’s Exposure exceeds the Unsecured Credit (rounding upwards to the nearest $100,000), less any Performance Assurance already posted with Buyer.
For purposes of determining Unsecured Credit, the relevant Maximum Credit Limit for aggregate transactions shall not exceed the Maximum Credit Limit listed in the table above that corresponds to DS Supplier’s (or DS Supplier’s Guarantor’s) lowest Credit Rating most recently published by the three credit rating agencies: S&P, Fitch and ▇▇▇▇▇’▇.
The Contracting Wholesaler and the Contracting Retailer agree that for such period as this Agreement is in effect, the Contracting Retailer shall (as an alternative to the Unsecured Credit Allowance to which the Contracting Retailer is entitled to under the Business Terms and any Other Unsecured Arrangement from time to time) be entitled to utilise the Alternative Unsecured Allowance, subject to the terms of this Agreement (including without limitation the eligibility criteria set out at clause 2.3 below).
The Alternative Unsecured Allowance shall at all times be an alternative to the Unsecured Credit Allowance and any Other Unsecured Arrangement and may only be used independently of the Unsecured Credit Allowance and any Other Unsecured Arrangement from time to time.
The Contracting Wholesaler hereby agrees that (subject to the provisions of this Agreement) for the duration of this Agreement, if from time to time the value of the Unsecured Credit Allowance to which the Contracting Retailer is entitled in accordance with the Contract (the Allowable Value) is less than the Relevant Amount, the Contracting Wholesaler shall allow the Contracting Retailer by way of Alternative Eligible Credit Support an amount equal to the Agreed Allowance.
On any Business Day (but no more frequently than weekly with respect to Letters of Credit or other security acceptable to Buyer, and daily with respect to cash), Seller, at its sole cost, may request that the Performance Assurance be reduced correspondingly to reflect the decrease in Buyer’s Exposure or an increase in Seller’s Unsecured Credit, if any (rounding upwards for any fractional amount to the nearest $250,000).
For purposes of determining Unsecured Credit, the relevant Maximum Credit Limit for aggregate transactions shall not exceed the Maximum Credit Limit listed in the table above that corresponds to DS Supplier’s (or DS Supplier’s Guarantor’s) lowest Credit Rating most recently published by the three credit rating agencies: S&P, Fitch and Moody’s.