Pine Needle LNG Company, LLC

Original Volume No. 1

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Effective Date: 05/01/1999, Docket: CP96- 52-003, Status: Effective

Original Sheet No. 78 Original Sheet No. 78 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

22. CREDIT WORTHINESS (Continued)

 

22.1 (d) A written attestation from Customer that it is not subject

to the uncertainty of pending liquidation or regulatory

proceedings in state or federal courts which could cause a

substantial deterioration in its financial condition, which

could cause a condition of insolvency, or the ability to

exist as an ongoing business entity; and

 

(e) A written attestation from Customer that no significant

collection lawsuits or judgments are outstanding which would

seriously reflect upon the business entity's ability to

remain solvent.

 

22.2 (a) If Customer has an ongoing business relationship with Pine

Needle, no uncontested delinquent balances should be

outstanding for bills previously rendered by Pine Needle 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.

 

(b) Customer shall furnish Pine Needle at least annually, and at

such other time as is requested by Pine Needle, updated

credit information as specified in Section 22.1 for the

purpose of enabling Pine Needle to perform an updated credit

appraisal. In addition, Pine Needle reserves the right to

request such information at any time if Pine Needle is not

reasonably satisfied with Customer's credit worthiness or

ability to pay based on information available to Pine Needle

at that time.

 

(c) Pine Needle shall not be required to perform and shall have

the ability to suspend service for any Customer who is or

has become insolvent, fails to demonstrate credit worthiness

under Section 22.1, fails to timely provide information to

Pine Needle as requested in Section 22.1(b), or fails to

demonstrate ongoing credit worthiness as a result of credit

information obtained pursuant to Section 22.2(b); provided,

however, Customer may receive or continue to receive service

if Customer either (i) furnishes and maintains for the term

of the applicable service agreement a guaranty in form and

substance satisfactory to Pine Needle, executed by a person

Pine Needle deems credit worthy, of Customer's performance

of its obligations to Pine Needle, or (ii) furnishes other

form of security as Customer may agree to provide and as may

be acceptable to Pine Needle.