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