ML19319C248

Forwards Swiss Bank Corp Confirming Line of Credit Arrangement.Ltr Contains New Restriction Clause Allowing Line Credit to Be Used Only in Event of Liability Arising Out of Any Extraordinary Nuclear Occurrence

ML19319C248
Person / Time
Site:	Davis Besse
Issue date:	11/11/1977
From:	Ertle R, Roe L TOLEDO EDISON CO.
To:	Saltzman J Office of Nuclear Reactor Regulation
References
400, NUDOCS 8002110712
Download: ML19319C248 (3)

Text

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TCLEDO EDISON Docket No. 50-346 M'

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Mr. Jerocie Saltzman, Chief Antitrust & Indemnity Group Nuclear Reactor Regulation Washington, D.C.

20555 Gentlemen:

Re: Davis-Besse #l Retrospective Premium Guarantee Please refer to our letter of July 28, 1977, whereby we provided you with a copy of a letter from the Swiss Bank Corporation outlining their proposal for a line of credit arrangement in the amount of $5,000,000 effective August 1, 1977.

Attached is a copy of a letter dated November 3, 1977, from the Swiss Bank Corporation confirming the line of credit arrangement in the amount of

$5,000,000, which was established in our favor August 1, 1977.

The attached letter also includes a new " Restriction" clause which allows the line of credit to be used only in the event of our liability arising out of any extraordinary nuclear occurrence.

The changes outlined above and set forth in detail in the attached letter are provided in response to a request from Mr. Ira Dinitz, Indemnity Spe-cialist, United States Nuclear Regulatory Commission.

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Lowell E. Roe Robert F.

Ertle Vice President, Facilities Development Assistant Treasurer Attachment ec: Cleveland Electric Illuminating Company THE TCLECC ECISCN COMPANY ECISCN CLAZA 3CC VACISCN C/ENUE

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s EEEEE SWISS B A N K C O R PO R ATI O N NEW YORK BR ANCH 15 N A S S A U S T A E ET. N EW Y C A K, N. Y 10005 IS*4 our r f.:

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.x Toledo Edison Company 300 Madison Avenue Toledo, Ohio 43604 Attention: Mr. Robert Ertle Assistant Treasurer Gentlemen:

Following up on our recent telephone conversation, we are pleased to confirm the following stand-by credit facility which was established in your favor on August 1,1977 :

-BORROWER: Toledo Edison Company Toledo, Ohio

-AMOUNT: $5,000,000.--

-UTILIZATION: Available for a straight cash advance against a promissory note.

-RESTRICTION: In keeping with new regulations set forth by the Nuclear Regulatory Commission (NRC), we hereby agree to allow actual usage of this stand-by credit line only in the event that a claim is asserted against Toledo Edison as a result of your liability arising out of any extraordinary nuclear occurrence.

We would require official written notice of such an occurrence and specific authorization from the NRC to make this $5,000,000 f acility available to you.

-VALIDITY: Two years; commencing August 1, 1977 and expiring July 31, 1979.

Renewable if mutually acceptable.

All other details, including conditions, rates and fees remain as stated in our letter of July 15, 1977.

If you have any questions, please consider us at your complete disposal.

Very sincerely yours, r

SWISS BANK CORPORATION /

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A. Togni J. H.

Stewart Executive Vice President irst Vice President

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