Current Payables Clause Samples
The 'Current Payables' clause defines the outstanding amounts that one party owes to another as of a specific date, typically in the context of a business transaction or agreement. This clause details which invoices, bills, or other financial obligations are considered due and payable at the time of closing or settlement, often requiring a schedule or list of such payables to be provided. Its core function is to ensure transparency and accuracy regarding short-term financial liabilities, helping both parties clearly understand and account for existing debts at a critical point in the transaction.
Current Payables. 39 DCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Current Payables. No Borrower shall be delinquent in the payment of its respective accounts payable as determined by the Lenders jointly.
Current Payables. The Current Payables, which form part of the Assumed Liabilities, are not to exceed $309,500. WSMP shall choose the Current Payables it intends to pay, and inform the Sellers of those it does not intend to pay. As used herein, Current Payables included any payable incurred on or before February 28, 1997, or any current payment due on or before that date. It shall also include any accrued liabilities that WSMP may pay on behalf of the Sellers, such as accrued property taxes which are Sellers' responsibility under a Lease, accrued payroll and accrued vacation pay. The parties acknowledge that certain short-term assets of the Sellers, such as pre-paid rent or gift certificates on hand, may be transferred from Sellers to Buyer. If Sellers transfer such to WSMP and WSMP accepts them, then WSMP shall increase the amount of Current Payables it shall assume by the fair market value of such short-term assets. The parties acknowledge that Sellers have currently accrued liability for vacation pay totalling approximately $51,000. If WSMP should agree to assume such liability on behalf of the Sellers, it shall also be considered as making up a portion of the total Current Payables being assumed by WSMP. Within six (6) months of the Closing Date, WSMP shall calculate the total amount of Current Payables or Assumed Liabilities it has paid or assumed on behalf of the Sellers. If such exceed $309,500, WSMP will give Sellers 30 days' written notice, to repay the excess amount. If Sellers fail to pay within this period, WSMP may reduce the amount of the Promissory Notes by such amount. If the Current Payables or the Assumed Liabilities are less than the amount assumed, then the amount of the Promissory Note shall be increased by such amount. Should the Sellers or related parties fail or refuse to pay any sum incurred or owing to WSMP, WSMP may offset such sum against any amount due under the Promissory Notes, irrespective of the fact that the Seller which incurred the debt may not be the Seller that holds the Promissory Note. The Sellers agree to determine and settle among themselves any questions of offset among the parties.