Common use of Collaterals Clause in Contracts

Collaterals. 14.1. In justified events, the TSO may request reasonable collateral from the BRP. The BRP shall be informed in writing of the reasons for requesting such collateral. The collateral shall be provided within 10 WDs after its request. A justified reason is deemed to exist, in particular, if a. the BRP has been in default of due payments in a significant amount with regard to its economic capacity, twice within 12 calendar months and has not made the payment, despite an express request; b. foreclosure measures due to outstanding debts in a material amount with regard to its economic capacity (German law: Zivilprozeßordnung [ZPO]) §§ 803-882a ZPO (Code of Civil Procedure)) were initiated against the BRP, c. an application for the initiation of insolvency proceedings over the BRP’s assets was filed and the BRP does not evidence the unfairness of such application within the period defined in sentence 3; if the BRP is unable to evidence the unfairness within the period in sentence 3, the collateral shall be provided immediately after the end of the period; d. the BRP is unable to dispel the worries that the BRP will not be able to meet the obligations arising from this Contract which is justified by an information which the TSO obtained on the BRP or by other circumstances, within the period mentioned in sentence 3, by way of suitable evidence of its creditworthiness such as e.g. a current business report, an extract from the commercial register or, in case of need, by other current information which are relevant for the creditworthiness. The information obtained or the other information, on which the justified worries are based, shall be disclosed completely to the BRP when the request for the collateral is made. 14.2. The collateral shall be deemed to be reasonable, if it corresponds to the sum of the average energy supplies from the balancing group to grid connections over a period of 7 days as well as the average quantity of energy of the trading transactions handled through the balancing group for 33.5 hours each, multiplied by the average of the reBAP of the last 12 calendar months.