PRUDENTIAL REQUIREMENTS Clause Samples
The "Prudential Requirements" clause sets out the financial and regulatory standards that a party must meet to engage in or continue a contractual relationship. Typically, this clause requires parties—often financial institutions or regulated entities—to maintain certain levels of capital, liquidity, or compliance with relevant laws and regulations. For example, a bank may be required to adhere to minimum capital adequacy ratios or other regulatory benchmarks. The core function of this clause is to ensure that all parties remain financially stable and compliant, thereby reducing the risk of default or regulatory breaches during the term of the agreement.
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PRUDENTIAL REQUIREMENTS. 10.1 Distributor may require Trader to comply with prudential requirements: The Distributor may, by giving notice to the Trader, require the Trader to comply with prudential requirements, in which case the Trader must, whether the notice is received before or after the commencement of this Agreement, comply with prudential requirements as follows:
(a) if the Trader is not trading on the Network, the Trader must comply with prudential requirements before the Trader starts trading on the Network; and
(b) if the Trader is trading on the Network, the Trader must comply with prudential requirements within 10 Working Days after receipt of the Distributor's notice.
PRUDENTIAL REQUIREMENTS. 12.1 Retailer will satisfy prudential requirements: If required by a notice from the Distributor, the Retailer will comply with either one of the following prudential requirements within 10 Working Days of receipt of the Distributor's notice:
(a) the Retailer will maintain an acceptable credit rating; or
(b) the Retailer will provide and maintain acceptable security by, at the Retailer's election:
(i) providing the Distributor with a cash deposit of the value specified in clause 12.6 ("Cash Deposit"), which the Distributor will hold in a trust account that the Distributor will establish and operate in accordance with clause 12.24;
(ii) arranging for a third party with an acceptable credit rating to provide security in a form acceptable to the Distributor, of the value specified in clause 12.6; or
(iii) providing a combination of the securities listed in subparagraphs (i) and (ii) to the value specified in clause 12.6.
PRUDENTIAL REQUIREMENTS. Clauses 4 to 8 apply in relation to a distributor agreement between a distributor and a
PRUDENTIAL REQUIREMENTS. 6.1 Distributor may require Retailer to comply with prudential requirements: The Distributor may, by giving notice to the Retailer, require the Retailer to comply with prudential requirements, in which case the Retailer must, whether the notice is received before or after the Effective Date of this agreement, comply with prudential requirements as follows:
PRUDENTIAL REQUIREMENTS. 8.1 Retailer will satisfy prudential requirements: The Retailer will comply with either one of the following prudential requirements:
(a) the Retailer will maintain an acceptable credit rating, or
(b) the Retailer will provide and maintain acceptable security by, at the Retailer's election:
(i) providing the Distributor with a cash deposit of the value specified in clause 8.6 (as may be reviewed by the Distributor in accordance with clause 8.10) (“Cash Deposit”) which the Distributor will hold in a trust account that the Distributor will establish and operate in accordance with clause 8.26; or
(ii) arranging for a third party with an acceptable credit rating to provide security in a form acceptable to the Distributor, of the value specified in clause 8.6; or
(iii) providing a combination of the securities listed in subparagraphs (i) or (ii) to the value specified in clause 8.6.
PRUDENTIAL REQUIREMENTS. 1.1 Network User will satisfy prudential requirements: If required by a notice from the Distributor, the Network User will comply with either one of the following prudential requirements within 10 Working Days of receipt of the Distributor’s notice:
PRUDENTIAL REQUIREMENTS. Service Provider may:
PRUDENTIAL REQUIREMENTS. Service Provider may:
(a) require the Shipper to provide, prior to commencement of the Tariffed Transmission Service and thereafter as reasonably required, financial security in the form of a parent company guarantee, bank guarantee or similar security as reasonably determined by Service Provider for the performance of the Shipper’s obligations under the Transmission Payment Deed; and
(b) where the Shipper:
(i) fails to pay when due any amounts payable under the Transmission Payment Deed, excepting any contested amounts; or
(ii) fails to obtain and maintain any Approvals required to meet its obligations under the Transmission Payment Deed; or
(iii) has a material adverse change to its credit rating or credit worthiness during the term of the Transmission Payment Deed and does not provide Service Provider with additional financial security as reasonably required to reflect this change in circumstance,
(c) subject to providing at least 7 days written notice to the Shipper, refuse to provide or suspend the provision of the Tariffed Transmission Service, without liability to the Shipper.
PRUDENTIAL REQUIREMENTS. 10.1 Distributor may require prudential assurance
PRUDENTIAL REQUIREMENTS. 12.1 Retailer will satisfy prudential requirements: If required by a notice from the Distributor, the Retailer will comply with either one of the following prudential requirements (at its election) within 10 Working Days of receipt of the Distributor’s notice:
(a) the Retailer will maintain an acceptable credit rating; or
(b) the Retailer will provide and maintain acceptable security by, at the Retailer's election:
(i) providing the Distributor with a cash deposit of the value specified in clause 12.6 (as may be reviewed by the Distributor in accordance with clause 12.10) ("Cash Deposit"), which the Distributor will hold in a trust account that the Distributor will establish and operate in accordance with clause 12.24; or
(ii) arranging for a third party with an acceptable credit rating to provide security in a form acceptable to the Distributor, of the value specified in clause 12.6. The security must not expire prior to the date on which all amounts owing under this agreement by the Retailer to the Distributor have been paid; or
(iii) providing a combination of the securities listed in subparagraphs (i) and (ii) to the value specified in clause 12.6.