Egan Hub Storage, LLC
First Revised Volume No. 1
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Effective Date: 06/15/2009, Docket: RP09-596-000, Status: Effective
Third Revised Sheet No. 107 Third Revised Sheet No. 107
Superseding: Sub Second Revised Sheet No. 107
GENERAL TERMS AND CONDITIONS
(Continued)
3.4 Credit Evaluation:
(a) Evidence of creditworthiness. Egan Hub's acceptance of a request for new
service or a request resulting in a Billing Amendment under any of Egan Hub's rate schedules is
contingent upon a satisfactory credit appraisal by Egan Hub. Egan Hub shall apply, on a non-
discriminatory basis, consistent financial evaluation standards to determine the acceptability
of Customer's overall financial condition. Egan Hub shall not use any criteria, formula,
ranking system or other methodology that would give any preference or advantage to an affiliate
of Egan Hub. To enable Egan Hub to conduct such credit appraisal, a Customer shall submit the
following; provided, however, that submission of such material shall not be deemed acceptance
of a request for service by Egan Hub, which determination shall be made by Egan Hub only after
submission of the material and information set forth below and a determination by Egan Hub that
Customer is sufficiently creditworthy. In the event Customer cannot provide the information
required by this Section 3.4(a), Customer shall, if applicable, provide such information for
its parent company.
(1) Customer shall provide current financial statements, annual reports, 10-K
reports or other filings with regulatory agencies which discuss Customer's
financial status, a list of all corporate affiliates, parent companies and
subsidiaries, and any reports from credit reporting and bond rating
agencies which are available. Egan Hub shall determine the acceptability
of the Customer's overall financial condition;
(2) Customer shall provide a bank reference and at least two trade references.
The results of reference checks and any credit reports submitted in
3.4(g)(1) must show that Customer's obligations are being paid on a
reasonably prompt basis;
(3) Customer shall confirm in writing that Customer is not operating under any
chapter of the bankruptcy laws and is not subject to liquidation or debt
reduction procedures under state laws, such as an assignment for the
benefit of creditors, or any informal creditors' committee agreement. An
exception can be made for a Customer who is a debtor in possession
operating under Chapter XI of the Federal Bankruptcy Act but only with
adequate assurance that the service billing will be paid promptly as a cost
of administration under the Federal Court's jurisdiction;
(4) Customer shall confirm in writing that Customer is not aware of any change
in business conditions which would cause a substantial deterioration in its
financial condition, a condition of insolvency or the inability to exist as
an ongoing business entity;
(5) If Customer has an on-going business relationship with Egan Hub, no
delinquent balances should be outstanding for services made previously by
Egan Hub and Customer must have paid its account during the past according
to the established terms and not made deductions or withheld payment for
claims not authorized by contract; and
(6) Customer shall confirm in writing that no significant collection lawsuits
or judgments are outstanding which would seriously reflect upon the
business entity's ability to remain solvent.
(b) Egan Hub shall not be required to perform or to continue service under any
Rate Schedule on behalf of any Customer who is or has become insolvent or who, at Egan Hub's
request, fails within a reasonable period to demonstrate creditworthiness. Upon notification
by Egan Hub that a Customer has failed to satisfy the credit criteria or subsequently during
the term of the service agreement no longer satisfies the credit criteria, such Customer may
still obtain credit approval by Egan Hub if it pays any outstanding balances due Egan Hub for
service rendered or has complied with Section 14.4 of the General Terms and Conditions with
regard to such balances and elects to provide one of the following security: