CREDIT COVER Clause Samples
The Credit Cover clause establishes the requirement for one party to provide financial security or collateral to guarantee its obligations under the contract. This may involve the provision of cash, bank guarantees, or letters of credit, and typically applies when there is a risk of non-payment or default. By requiring credit cover, the clause ensures that the party receiving the cover is protected against potential losses, thereby allocating risk and enhancing the overall financial security of the agreement.
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CREDIT COVER. 7.1 The Client which has subscribed LNG Truck Services for at least one hundred thousand Euro (100,000.00 €) per Contract Year has to provide a Financial Bank Guarantee in order to secure its due performance of this LTL in accordance with this GC 7 unless if, at the latest five (5) Business Days before the Service Start Date: • the Client has an acceptable credit rating – which corresponds to a rating for the Client’s long term unsecured and non credit enhanced debt obligations of not less than BBB+ by Standard & Poor’s Rating Services or Fitch Ratings or not less than Baa1 by ▇▇▇▇▇’▇ Investor Services –; or • the Client can provide an unconditional and irrevocable parent company guarantee of its parent company, which has a credit rating not lower than BBB+ by Standard & Poor’s Rating Services or Fitch Rating, or not lower than Baa1 by ▇▇▇▇▇’▇ Investor Services provided however that there are no invoiced amounts overdue, at the latest five (5) Business Days before the Services Start Date. The Terminal Operator shall, before the signature of the relevant contract, request the Client to demonstrate that it is complying with the Credit Cover provisions as well as to comply with the “Know Your Customer” requirements established by the Terminal Operator in consultation with the ▇▇▇▇. Once the Agreement has duly entered into force, the Terminal Operator may assess at any time the compliance of the Client with the “Know Your Customer” requirements and may request the Client to demonstrate its compliance with the Credit Cover provisions and “Know Your Customer” requirements. The Client must proactively demonstrate on an annual basis, at the latest each 1st of January, that the Client or its Parent Company still complies with the Credit Cover provisions and “Know Your Customer” requirements In case the Client fails to demonstrate compliance, the Terminal Operator has the right to suspend the LNG Truck Services until it receives confirmation that the requirements have been complied with. Such suspension shall not constitute a failure by the Terminal Operator to provide LNG Truck Services to Client under this LTL.
7.2 In case a Financial Bank Guarantee is required according to GC 7.1, the Client has to provide at the latest five (5) Business Days before the Services Start Date an unconditional and irrevocable Financial Bank Guarantee issued by a bank approved by the Financial Services & Market Authority (“FSMA” or by an equivalent body in one of the Members States of...
CREDIT COVER. The Factoring Agent will hold on trust for the Tranche C Lenders any proceeds received by it from a provider of Credit Cover in respect of an Eligible Receivable (the Credit Cover Proceeds).
CREDIT COVER. 110.1 CREDITWORTHINESS REQUIREMENTS In order to secure Shipper’s due performance of this Agreement, the Terminal Operator is entitled to require the Shipper and the Other Shippers having entered into an LTA for LNG Redelivery Services to : Terminal Operator shall be entitled at any time during the Service Term to request Shipper to demonstrate within fifteen (15) Business Days after the notification by Terminal Operator that the Financial Bank Guarantee or the acceptable credit rating, is in fact compliant with this GC 109. If the Shipper no longer meets the requirements stipulated in GC 109.1, it must, at the risk of breach of contract, immediately notify the Terminal Operator hereof by registered mail. The Shipper has twenty fifteen (15) Business Days in order to demonstrate to the Terminal Operator that it complies with the provisions of GC 109.1.1. If upon expiry of this period, the Shipper does not comply with the provisions of GC 109.1.1, the LNG Redelivery Services will be suspended in accordance with GC 165.2. Any modification of Shipper’s Subscribed LNG Redelivery Service(s), lower or higher, during the Service Term covered by the Financial Bank Guarantee or the parent company guarantee as the case may be, shall automatically entail the adjustment of the amount of accordingly.
CREDIT COVER