Section M contains the rules regarding Credit Cover and Credit Default. It sets out how a Trading Party's Energy Indebtedness is calculated; the basis on which Trading Parties may lodge Credit Cover for their Energy Indebtedness; and what happens if this Credit Cover is insufficient and causes a Credit Default. It also includes arrangements for compensation payments to Trading Parties following certain calculation errors.

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<div data-id="section-m-1-1.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.1 Introduction</div>

<div data-id="section-m-1-1.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.2 Energy Indebtedness</div>

<div data-id="section-m-1-1.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.3 Authority for steps under Sections M and P</div>

<div data-id="section-m-1-1.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.4 Credit Assessment Price</div>

<div data-id="section-m-1-1.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.5 Credit Assessment Load Factor</div>

<div data-id="section-m-1-1.5A" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.5A Annual Holiday Periods</div>

<div data-id="section-m-1-1.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.6 Import and Export Capabilities</div>

<div data-id="section-m-1-1.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.7 Material Doubt Guidance</div>

<div data-id="section-m-1-1.8" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.8 Final Physical Notification Data Review</div>

<div data-id="section-m-1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1. GENERAL</div>

<div data-id="section-m-2-2.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.1 Provision of Credit Cover</div>

<div data-id="section-m-2-2.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.2 Letter of Credit and Approved Insurance Product</div>

<div data-id="section-m-2-2.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.3 Reduction of Credit Cover</div>

<div data-id="section-m-2-2.3A" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.3A Reduction of Credit Cover for Non-Supplier Trading Party</div>

<div data-id="section-m-2-2.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.4 Determination of Energy Credit Cover</div>

<div data-id="section-m-2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2. CREDIT COVER AND ENERGY CREDIT COVER</div>

<div data-id="section-m-3-3.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.1 General</div>

<div data-id="section-m-3-3.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.2 Level 1 Credit Default</div>

<div data-id="section-m-3-3.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.3 Level 2 Credit Default</div>

<div data-id="section-m-3-3.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.4 Authorisation by BSCCo</div>

<div data-id="section-m-3-3.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.5 Result of Trading Dispute, etc</div>

<div data-id="section-m-3-3.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.6 BMRS and BSC Website</div>

<div data-id="section-m-3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3. CREDIT DEFAULT STATUS</div>

<div data-id="section-m-4-4.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.1 Introduction</div>

<div data-id="section-m-4-4.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.2 Credit Cover Error Compensation</div>

<div data-id="section-m-4-4.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.3 Procedures</div>

<div data-id="section-m-4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4. CREDIT COVER ERRORS AND COMPENSATION</div>

<div data-id="form-of-letter-of-credit-ucp-500" style="margin-left:0.69in;text-indent:-0.69in;text-align: center">Form of Letter of Credit (UCP 500)</div>

<div data-id="annex-m-1" style="margin-left:0.69in;text-indent:-0.69in;text-align: center">ANNEX M-1</div>

<div data-id="form-of-letter-of-credit-ucp-600" style="margin-left:0.69in;text-indent:-0.69in;text-align: center"><u>Form of Letter of Credit (UCP 600)</u></div>

<div data-id="annex-m-2" style="margin-left:0.69in;text-indent:-0.69in;text-align: center"><u>ANNEX M-2</u></div>

<div data-id="form-of-letter-of-credit-isp98" style="margin-left:0.69in;text-indent:-0.69in;text-align: center">Form of Letter of Credit (ISP98)</div>

<div data-id="annex-m-3" style="margin-left:0.69in;text-indent:-0.69in;text-align: center">ANNEX M-3</div>

<div data-id="annex-m-4-1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1. <span>Requirements of an Approved Insurance Product</span></div>

<div data-id="annex-m-4" style="margin-left:0.69in;text-indent:-0.69in;text-align: center">ANNEX M-4</div>

<div data-id="amendment-record--section-m" style="margin-left:0.69in;text-indent:-0.69in;text-align: center">AMENDMENT RECORD – SECTION M</div>

<div data-id="section-m" style="text-align:center">SECTION M: CREDIT COVER AND CREDIT DEFAULT</div>

CONTENTS

BSC Section M: Credit Cover and Credit Default V34.0

Defined Terms

Cross-references