GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
12. CREDITWORTHINESS (Continued)
12.4 Creditworthiness for Interruptible Transportation Service
(Continued)
(b) (Continued)
(i) Guarantee: Shipper may obtain a guarantee of financial
performance in a form satisfactory to NBP from a
corporate affiliate of the Shipper or a third party,
either of which meets the creditworthiness standard
discussed above. For these Shippers the credit limit
will be based upon the financials of the guarantor. A
form of guarantee is available on NBP's website.
(ii) Cash Prepayment: A Shipper may prepay for service via
cleared check or wire transfer. For interruptible
service, the amount of the prepayment must be up to the
maximum amount of service that may be provided in any
three-month period under an interruptible Agreement.
NBP will pay interest on prepayments at the applicable
monthly "Federal Funds (effective)" rate published in
the Federal Reserve Statistical Report H.15.
(iii) Letter of Credit: Shipper may post a Letter of Credit
(LC) in a form acceptable to NBP. A form of LC is
available on NBP's website. For interruptible service,
the amount of the LC must be up to the maximum amount
of service that may be provided in any three-month
period under an interruptible Agreement.
(iv) Any other security mutually agreed upon by Shipper and
NBP. Such other security shall be accepted on a non-
discriminatory basis.
12.5 Creditworthiness for Lending Service
The standards for Interruptible Transportation Service apply to
NBP's interruptible PAL-1 Services. For lending service, however,
the collateral requirement under the pre-payment and LC options
includes an amount to adequately account for the value of the gas
being lent.
(Continued)
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