Southeast Supply Header, LLC

Original Volume No. 1

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Effective Date: 09/04/2008, Docket: CP07-44-005, Status: Effective

Original Sheet No. 333 Original Sheet No. 333

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

27. CREDITWORTHINESS

 

27.1 General Credit Procedures

 

(a) Transporter shall not be required to (i) execute an

Agreement providing for service under the applicable Rate

Schedule for any Shipper who fails to meet Transporter's

standards for creditworthiness, or (ii) initiate service

for a Shipper who subsequently fails to meet Transporter's

standards for creditworthiness, or (iii) continue service

for any Shipper who is or has become insolvent or who, at

Transporter's request, fails within a reasonable period to

demonstrate creditworthiness pursuant to Transporter's

standards.

 

(b) To permit Transporter to conduct a creditworthiness review,

a Shipper shall, upon request by Transporter, render to

Transporter: (i) complete and current financial statements,

including annual reports, 10K reports or other filings with

regulatory agencies, prepared in accordance with generally

accepted accounting principles, or for non U.S.-based

Shippers, prepared in accordance with equivalent

principles; (ii) a list of corporate affiliates, parent

companies and subsidiaries; and (iii) any credit reports

available from credit reporting agencies. In addition to

the establishment of creditworthiness: (i) Shipper must not

be operating under any chapter of the bankruptcy laws and

must not be 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; (ii) Shipper should not be subject to the

uncertainty of pending liquidation or regulatory

proceedings which could cause a substantial deterioration

in its financial condition, a condition of insolvency, or

the inability of Shipper to exist as an ongoing business

entity; (iii) if Shipper has an ongoing business

relationship with Transporter, no undisputed delinquent

balances should be consistently outstanding for any

services performed previously by Transporter, and Shipper

must have paid its account in the past according to the

credit terms and contract provisions and not made

deductions or withheld payment for claims not authorized by

contract; and (iv) no significant collection, lawsuits or

judgments are outstanding which would adversely impact the

ability of Shipper to remain solvent.