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. 334 Original Sheet No. 334

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

27. CREDITWORTHINESS (continued)

 

27.1 General Credit Procedures (continued)

 

(c) For purposes of Section 27.1(b) above, the insolvency of a

Shipper shall be presumed by the filing by such Shipper or

any parent entity thereof of a voluntary petition in

bankruptcy or the entry of a decree or order by a court

having proper jurisdiction adjudging the Shipper or any

parent entity thereof bankrupt or insolvent. The

insolvency of a Shipper shall also be presumed by the

filing by the Shipper or its parent entity of a voluntary

or involuntary proceeding, reorganization, receivership,

liquidation, a debt reduction procedure, assignment for the

benefit of creditors, formal or informal creditor

restructuring agreement, or the filing of any case under

the United States Bankruptcy Code, or any other applicable

federal or state law.

 

(d) If any of the events or actions described in Section

27.1(c) above shall be initiated or imposed during the term

of service hereunder, Shipper shall provide notification

thereof to Transporter within two (2) Business Days of any

such initiated or imposed event or action.

 

27.2 Credit Requirements for long-term Shippers (contracts greater

than 1 year). Shipper shall at all times comply with one of the

following creditworthiness requirements:

 

(a) Shipper (or an affiliate which guarantees Shipper's

obligations under the Agreement) has an investment grade

credit rating for its long term senior unsecured debt from

Moody's Investor Service of Baa3 or better or from Standard

& Poor's of BBB- or better. A Shipper who qualifies under

this category initially but is later downgraded below such

investment grade will be required to qualify pursuant to

Section 27.2(b) below.