Honeoye Storage Corporation
Original Volume No. 1A
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Effective Date: 08/01/2000, Docket: CP00- 93-003, Status: Effective
Original Sheet No.103 Original Sheet No.103 : Effective
shall assign its service agreement(s) or any of its rights thereunder unless it first
shall have obtained the consent thereto in writing of the other party.
11.5 Creditworthiness. Seller shall not be required to commence service or, subject to
the following provisions, to continue to provide service and may terminate a
Agreement with any Customer under Rate Schedule FSS and/or Service
Agreements under Rate Schedule ISS, if:
(1) Customer is or has become insolvent;
(2) Customer has applied for bankruptcy under Chapter 11 of the Bankruptcy
Code, or a similar state bankruptcy statute;
(3) Customer, when requested by Seller to demonstrate creditworthiness, fails
to do so in Seller's reasonable judgement, in light of previous payment
experience and changes thereto and the prudent credit analysis of
information available; provided, however, that any such Customer that is
receiving service shall continue to receive service for a period of fifteen
(15) Days after written notice by Seller of any such circumstance, and
shall continue thereafter to receive service if, within such fifteen (15) Day
notice period, such Customer:
(i) deposits with Seller and maintains, on account, an amount which
would be due for three (3) Months service at the full contract
quantities set forth in the Service Agreement; or
(ii) furnishes good and sufficient security, which may include an
acceptable standby letter of credit, or monthly prepayment
agreement or other security as reasonably determined by Seller, of
a continuing nature and in an amount equal to such amounts which
would be due for service. If such payment on account or payment
security is not received within such fifteen (15) Day notice period,
Seller may, without waiving any rights or remedies it may have,
suspend further service for a period of ten (10) Days. If such
payment on account or a payment security is not received within
such ten (10) Day suspension period, then Seller shall no longer be
obligated to continue to provide service to such Customer.