Enbriidge Pipelines (Midla) L. L. C.

FIFTH REVISED VOLUME NO. 1

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Effective Date: 10/20/2002, Docket: RP03- 39-000, Status: Effective

Original Sheet No. 181 Original Sheet No. 181 : Effective

 

26. CREDIT EVALUATION

 

26.1 Pipeline's acceptance of a request for service is contingent upon

Customer's satisfying a credit appraisal by Pipeline. Pipeline

shall apply, on a non-discriminatory basis, consistent financial

evaluation standards to determine the acceptability of Customer's

overall financial condition. Such credit appraisal and any

further or ongoing credit appraisal as may be necessary shall be

based upon some, part or all of the following information and

criteria:

 

(a) Customer shall provide current financial statements, annual

reports, 10-K reports or other filings with regulatory

agencies which discuss Customer's financial status; a list

of all corporate affiliates, parent companies and

subsidiaries; and any reports from credit reporting and bond

rating agencies which are available.

 

(b) Customer shall provide a bank reference and at least two (2)

trade references. The results of reference checks and any

credit reports submitted in (a) above must show that

Customer's obligations are being paid on a reasonably prompt

basis.

 

(c) Customer shall confirm in writing that Customer is not

operating under any chapter of the bankruptcy laws and is

not 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.

An exception can be made for a Customer who is a debtor in

possession operating under Chapter 11 of the Federal

Bankruptcy Act but only with adequate assurance that the

service billing will be paid promptly as a cost of

administration under the federal court's jurisdiction.

 

(d) Customer shall confirm in writing that Customer is not aware

of any change in business conditions which would cause a

substantial deterioration in its financial condition, a

condition of insolvency or the inability to