Common use of PRUDENTIAL REQUIREMENTS Clause in Contracts

PRUDENTIAL REQUIREMENTS. Service Provider may: (a) require the Shipper to provide, prior to commencement of the Tariffed Transmission Service and thereafter as reasonably required, financial security in the form of a parent company guarantee, bank guarantee or similar security as reasonably determined by Service Provider for the performance of the Shipper’s obligations under the Transmission Payment Deed; and (b) where the Shipper: (i) fails to pay when due any amounts payable under the Transmission Payment Deed, excepting any contested amounts; or (ii) fails to obtain and maintain any Approvals required to meet its obligations under the Transmission Payment Deed; or (iii) has a material adverse change to its credit rating or credit worthiness during the term of the Transmission Payment Deed and does not provide Service Provider with additional financial security as reasonably required to reflect this change in circumstance, (c) subject to providing at least 7 days written notice to the Shipper, refuse to provide or suspend the provision of the Tariffed Transmission Service, without liability to the Shipper.