Steckman Ridge, LP
Original Volume No. 1
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Effective Date: 04/01/2009, Docket: RP09-389-000, Status: Effective
Original Sheet No. 224 Original Sheet No. 224
GENERAL TERMS AND CONDITIONS
(Continued)
4. CREDIT EVALUATION (continued)
4.1 Evidence of creditworthiness. (continued)
(e) If Customer has an on-going business relationship with
Steckman Ridge, no delinquent balances should be outstanding
for services previously provided to Customer by Steckman
Ridge 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
(f) 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.
Within ten (10) days of the completion of its initial review of
the information provided pursuant to this Section 4.1, Steckman
Ridge shall notify Customer via email of the results of such
review; in the event that Steckman Ridge determines that Customer
is not creditworthy, the email notice shall also include the
reason(s) for such determination.
4.2 Forms of Security. Steckman Ridge 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 Steckman
Ridge's request, fails within a reasonable period to demonstrate
creditworthiness.
(a) Upon notification by Steckman Ridge 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 Steckman Ridge if it pays any outstanding
balances due Steckman Ridge for service rendered or has
complied with Section 19.5 of the General Terms and
Conditions with regard to such balances and elects to
provide one of the following forms of security:
(1) an advance deposit;
(2) a standby irrevocable letter of credit, acceptable to
Steckman Ridge, issued by a financial institution that
satisfies Steckman Ridge's credit appraisal;
(3) security interest in collateral found to be
satisfactory to Steckman Ridge; or
(4) a guarantee, acceptable to Steckman Ridge, by another
person or entity which satisfies Steckman Ridge's
credit appraisal.
Steckman Ridge shall provide such Customer with a written
statement supporting Steckman Ridge's request for the
security amount requested at the time such security is
requested. If Steckman Ridge rejects the security provided
by Customer in accordance with Section 4.2(a)(2)-(4) above,
Steckman Ridge shall re-issue its request for the security
and include a written explanation for the rejection of the
security previously provided by Customer.