Glossary Term: Credit Cover

Acronym: CCp

The purpose of Credit Cover is to ensure that, should a Trading Party default, sufficient collateral is available to pay any debts. If a Party does not have sufficient funds it will enter into Credit Default.

BSC defined definition

means credit cover provided or to be provided by a Trading Party in accordance with Section M; Is provided by a Trading Party by lodging security (cash or letter of credit) with the FAA in order to cover its Energy Indebtedness.

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