Creditworthiness and Security Sample Clauses
The 'Creditworthiness and Security' clause establishes requirements for one party to demonstrate its financial stability and, if necessary, provide assurances such as guarantees, letters of credit, or other forms of security. In practice, this clause may require a party to periodically submit financial statements or allow the other party to request additional security if there are concerns about the ability to meet contractual obligations. Its core function is to protect the interests of the counterparty by reducing the risk of non-payment or default, thereby ensuring the reliability of the contractual relationship.
Creditworthiness and Security. In the event the Custom Incentive is two hundred fifty thousand dollars ($250,000.00) or more, Participant agrees that PGE may verify Participant’s creditworthiness at any time during the Term, which may include, but is not limited to, Participant providing PGE audited financial statements or other reasonable documentation related to the Participant’s creditworthiness. Based on its credit review of Participant, PGE may require security to ensure the Participant is financially capable of meeting its obligations under this Agreement. Participant will be required to provide security if their long-term senior, unsecured, debt obligation (not supported by third party credit enhancements) is rated by S&P below “BBB-” or by ▇▇▇▇▇’▇ below “Baa3.” If the Participant has not been assigned a long-term senior, unsecured, debt rating, an internal PGE credit score equivalent to the public debt ratings below BBB- / Baa3 may be used. Such security may include:
a. A surety bond issued by an issuer and in a form, substance and amount satisfactory to PGE;
b. A letter of credit issued by an issuer and in a form, substance and amount satisfactory to PGE;
c. A cash deposit in an amount satisfactory to Company; or
d. Any other mutually agreed credit mechanism.
Creditworthiness and Security. 6.1. Customer must meet the requirements of Section 46 of the GT&C and the Security requirements of Exhibit C hereto.
6.2. In the event of any conflict between the security requirements of Exhibit C and the Security requirements of Section 46 of the GT&C, the security requirements of Exhibit C will prevail.
Creditworthiness and Security. 43 15.1 Guaranty in favor of Southern.....................................................................
Creditworthiness and Security. 11
13.1 FPUC’S PROVISION OF ELIGIBLE COLLATERAL
13.2 GULF POWER'S PROVISION OF ELIGIBLE COLLATERAL 13.3 COMPLIANCE CERTIFICATE
Creditworthiness and Security. 6.1. Customer must meet the requirements of Section 46 of the GT&C and the Security requirements of Exhibit C.
6.2. In the event of any conflict between the Security requirements of Exhibit C and the Security requirements of Section 46 of the GT&C, Northern's FERC Gas Tariff will prevail.
Creditworthiness and Security