Credit Worthiness Sample Clauses
A Credit Worthiness clause establishes the requirement for one party, typically a customer or borrower, to demonstrate their financial stability and ability to meet payment obligations. In practice, this may involve providing financial statements, credit reports, or other documentation upon request, and may allow the other party to periodically review or reassess credit status. The core function of this clause is to protect the party extending credit or services by ensuring they are not exposed to undue financial risk from a counterparty who may be unable to pay.
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Credit Worthiness. Subject to credit review, you may be required, upon our request, to make an advance payment or deposit to us for Service Fees.
Credit Worthiness. Seller shall not be required to perform or to continue deliveries if Buyer is or has become insolvent or who, at Seller’s request, fails within a reasonable period to demonstrate credit worthiness; provided, however, Buyer may continue to receive deliveries if Buyer prepays for such service or furnishes good and sufficient security, as determined by Seller in its reasonable discretion, in an amount equal to the cost of estimated gas deliveries under this Agreement for a two (2) month period. For purposes herein, the insolvency of Buyer shall be evidenced by the filing by Buyer, or any parent entity thereof, of a voluntary petition in bankruptcy or the entry of a decree or order by a court having jurisdiction in the premises adjudging the Buyer bankrupt or insolvent, or approving as properly filed, a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Buyer under the Federal Bankruptcy Act or any other applicable federal or state law, or appointing a receiver, liquidator, assignee, trustee, or sequestrator (or other similar official) of the Buyer or of any substantial part of its property, or the ordering of the winding-up or liquidation of its affairs, with said order or decree continuing unstayed and in effect for a period of sixty (60) consecutive days.
Credit Worthiness. WHV and Retailer agree that this License is and ------------------ shall during the Term be conditioned upon and subject to timely payments by Retailer to WHV in accordance with the terms and provisions of Paragraphs 5 through 8 below.
Credit Worthiness. You acknowledge and agree that the Credit Union may terminate this agreement under the following conditions:
(1) upon adverse reevaluation of your credit worthiness.
(2) upon your failure to satisfy the terms of this agreement.
(3) at your option or at the credit union’s if it has good cause. You authorize the Credit Union to obtain information concerning your credit worthi- ness from consumer reporting agencies during the time this agreement is in effect.
Credit Worthiness. Any Guarantor which is not a BP Affiliate shall at all times maintain its status as a Qualifying Guarantor. “Qualifying Guarantor” means a Person that satisfies one or more of the following:
Credit Worthiness. 13.1. This Agreement is subject to (i) Seller providing, for the term of this Agreement, a parental guaranty to Buyer in the form attached hereto as Exhibit "B"; and (ii) Buyer providing, prior to Deliveries of Gas, an acceptable letter of credit for 90 days of gas deliveries to Seller provided that if Buyer's senior long-term debt is investment grade, no such letter of credit shall be required.
13.2. At any time, and from time to time during the term of this Agreement (and notwithstanding whether an Event of Default has occurred as defined in Section 21) but not more than once in any Day, if the Termination Payment (as such term is defined in Section 13.5) should exceed $5,000,000 with respect to Buyer and $12,000,000 with respect to Seller (the "Security Threshold"), then either Party may request the other Party to provide additional Performance Assurance in an amount equal to the amount by which the Termination Payment exceeds the Security Threshold (rounding upwards for any fractional amount to the next $100,000). The Performance Assurance shall be delivered within five Business Days of the date of the request. If such additional Performance Assurance is not received by the requesting Party within five Business Days, then the requesting Party, in addition to any other remedy available, may immediately suspend performance with respect to the quantities associated with the amount in excess of the Security Threshold, and cover such lost supply or market, as the case may be. Incremental gas costs (as referenced in Section 17 with respect to either Buyer or Seller, as applicable) incurred by the covering Party shall be recoverable from the other Party. Such suspension will be implemented on a pro rata basis to a level at which assurances have been provided. In addition, a failure to provide Performance Assurance as requested shall constitute an Event of Default under Section 21.
13.3. Either Party, at its sole expense, may request the other Party to reduce its Performance Assurance then in place if the Termination Payment (with respect to all Transactions then outstanding) reverts back to an amount less than or equal to the sum of the Performance Assurance and the Security Threshold then in place (rounding upwards for any fractional amount to the next $100,000). Such request for reduction shall be no more frequently than weekly, with respect to Letters of Credit and guaranties, and daily, with respect to cash. The consent to such request(s) shall not be unr...
Credit Worthiness. Buyer has sufficient credit support from Buyer Parent as may be necessary for Buyer to qualify as a “Qualified Transferee” as such term is defined in the EPIC LP Agreement.
Credit Worthiness. Bank reserves the right to:
(a) Determine the creditworthiness of Company periodically by obtaining financial statements from Company;
(b) Determine the appropriate maximum credit limit under the Account and the appropriate maximum credit limit for each Commercial Cardholder;
(c) Request a guaranty of payment, pledge of collateral, or other similar security from Company or its subsidiaries or affiliates based on the review of Company financial statements;
(d) Approve or decline the issuance, renewal, or replacement of a Commercial Card to any person in Bank’s solediscretion; and
(e) Cancel, suspend or limit spending on any Commercial Card at any time for any reason or no reason, subject to the notice requirements set forth in Section 21 of this Agreement.
Credit Worthiness. Bank reserves the right to:
(a) Determine the creditworthiness of Company periodically by obtaining financial statements from Company;
(b) Request a guaranty of payment, pledge of collateral, or other similar security from Company or its subsidiaries or affiliates based on the review of Company financial statements;
(c) Approve or decline the issuance, renewal, or replacement of a Commercial Card to any person in Bank’s sole discretion; and
(d) Cancel, suspend or limit spending on any Commercial Card at any time for any reason or no reason, subject to the notice requirements set forth in Section 21 of this Agreement.
Credit Worthiness. E. 8.1 Only in the case that GreenHunter becomes delinquent on two (2) consecutive monthly payments to Tuesday Pipeline in accordance with Section X herein, Tuesday Pipeline may demand that GreenHunter provide an unconditional and irrevocable Letter of Credit (as defined below) from a financial institution reasonably acceptable to Tuesday Pipeline or an alternative form of security proposed by GreenHunter and acceptable to Tuesday Pipeline and consistent with commercial practices established by the Uniform Commercial Code that is equal to the charge for two( 2) months of service hereunder.