DEALER COVENANTS Clause Samples
The "Dealer Covenants" clause sets out specific promises and obligations that the dealer must uphold under the agreement. These covenants typically require the dealer to comply with applicable laws, maintain certain standards of performance, and refrain from actions that could harm the interests of the other party or the reputation of the products involved. For example, the dealer may be required to maintain adequate inventory, provide after-sales support, or avoid selling competing products. The core function of this clause is to ensure that the dealer's conduct aligns with the expectations and requirements of the agreement, thereby protecting the interests of the manufacturer or supplier and maintaining the integrity of the business relationship.
DEALER COVENANTS. Section 3.1. Dealer grants CIG Financial full power of attorney to endorse and deposit in its checking account all checks made payable to Dealer which CIG Financial shall have received from Obligors or Dealer as payments on the Contracts purchased hereunder.
Section 3.2. Dealer agrees to remit in kind all funds collected or received as payment on Contracts purchased by CIG Financial, such remittances to be made within twenty-four (24) hours of receipt from an Obligor. Dealer agrees that it is responsible to CIG Financial for any payments received by Dealer regardless of loss thereof as the result of misplacement, theft, embezzlement or dishonesty by the agents or employees of Dealer.
Section 3.3. Dealer understands and agrees that Dealer is prohibited from making any payments on behalf of Obligors on Contracts purchased by CIG
Section 3.4. Dealer agrees to keep CIG Financial advised of any pertinent information coming to its knowledge or that of its employees or agents
Section 3.5. Dealer agrees not to quote “Pay-off” balances or accept sums of money as payment-in-full for any Contract purchased by CIG Financial, unless approval is first obtained from CIG Financial in writing, and to refer all requests for credit ratings and “Pay-offs” to the office of CIG Financial.
Section 3.6. Dealer agrees not to make or grant any extensions of payments of Contracts purchased by CIG Financial, or to change due dates of the installment specified therein, or to waive, cancel or reduce late charges without the approval and consent of CIG Financial.
Section 3.7. Dealer agrees to provide an annual balance sheet and income statement within ninety (90) days following the end of each fiscal year.
DEALER COVENANTS. Dealer covenants to do the following during the term of this Agreement with respect to the Program:
a) Dealer shall cooperate with FFC promptly to resolve all disputes with Buyers;
b) Dealer shall maintain a fair and equitable policy, in compliance with applicable legal requirements, for the exchange and return of Products and adjustment for Products rendered or not rendered, and shall promptly comply with FFC’s demand for repurchase of any Documents which have violated the representations and warranties of this agreement;
c) Dealer shall not seek or obtain any special credit arrangement or condition from consumers that is not approved by FFC;
d) Dealer shall not discriminate in any way against a consumer on a Prohibited Basis in connection with the offering of any Contract or Account or its terms;
e) Dealer shall (i) periodically train all Dealer employees that are involved in originating Contracts and Accounts under the Program on how to comply with applicable Fair Credit laws, (ii) take prompt and appropriate action to mitigate and remediate the effects of any violation of applicable Fair Credit laws by Dealer employees, (iii) implement reasonable and appropriate measures in response to any violation of applicable Fair Credit laws to prevent future violations, (iv) promptly notify FFC of any actual or alleged violation of applicable Fair Credit laws by Dealer employees; and (v) provide FFC with all available information that FFC requests regarding Dealer’s activities with respect to the origination of Contracts and Accounts to assist FFC in implementing its Fair Credit compliance program.
f) For any retail installment account agreement on which Dealer has sold any sales slip to FFC, Dealer shall offer to FFC any subsequent sales slips;
g) Dealer shall offer Documents for purchase by FFC only if the Documents are on forms of documents and have terms that have been provided by or approved by FFC;
h) Dealer shall not use any document provided by FFC except for purposes of the Program; and
i) Dealer shall operate Dealer’s financing and related activities in accord with all applicable laws
DEALER COVENANTS. Dealer covenants to do the following at all times from the Program Commencement Date through the Final Liquidation Date:
(a) Dealer shall promptly respond to, and fully cooperate with, Bank in connection with the resolution of disputes with Account Holders. In addition, Dealer will forward to Bank promptly after receipt a copy of any communication relating to an Account received from an Account Holder or from a governmental or regulatory authority.
(b) Dealer shall maintain a policy for the exchange, return, and adjustment of products and services that is in accordance with industry standards, and all applicable laws.
(c) Bank may request Dealer’s assistance, which assistance shall not be unreasonably withheld, in re-marketing through Dealer’s dealership Authorized Products (other than parts, accessories or services) that (i) are returned to Dealer by an Account Holder on a voluntary basis; (ii) Dealer, based upon Bank’s reasonable request and subject to Dealer’s consent, has repossessed from an Account Holder on a voluntary basis, (the reasonable cost of such repossession to be at Bank’s expense); or (iii) Bank physically delivers to Dealer. In connection with any repossessed product referred to in clauses (i), (ii) or (iii) above, (A) Dealer shall use its commercially reasonable efforts to re-market such products; provided, that Dealer may submit a sealed bid to Bank for any Authorized Product in an “AS IS” condition, (B) Bank shall have the right to accept or decline any offer or bid, and (C) for any such product sold by Dealer to a third party, Bank shall pay Dealer five percent (5%) of the resale price of such product. Dealer agrees to store without charge to Bank the Authorized Products on its premises until such Authorized Products are redeemed by the original buyer or delivered to any third-party purchaser (including Dealer) of such Authorized Product, as directed by Bank. Dealer shall exercise the same degree of care in safeguarding all Authorized Products during the storage period as Dealer exercises in safeguarding Dealer’s own inventory and at all times shall have sufficient insurance coverage in order to maintain the repossessed Authorized Products until such time as they are remarketed. The operation of the Authorized Products by Dealer for any purpose during the period of storage (except for the purpose of routine testing before buyer may purchase such Product) shall be deemed to be a Default and shall entitle Bank to the remedies under this...
DEALER COVENANTS. Dealer agrees that while Dealer has any unpaid indebtedness or obligations hereunder, contingent or otherwise, Dealer shall, unless Siena shall otherwise consent in writing:
a. Maintain and preserve its entity existence and all rights, franchise, and other authority adequate for the conduct of its business, maintain its properties, equipment, and facilities in good order and repair and conduct its business in an orderly manner without voluntary interruption.
b. Maintain a standard and modern system of accounting according to generally accepted accounting principles (GAAP) and furnish Siena:
c. As soon as available, and in any event within 90 days after the close of each fiscal year, complete financial statements to Siena for the previous year.
d. Such other information relating to the affairs of Dealer as Siena may request from time to time.
e. Reimburse Siena upon demand for all legal costs, including reasonable attorneys’ fees and other expenses incurred in enforcing any of Dealer’s obligations under this Agreement.
f. Promptly notify Siena in writing of any sale or transfer of any ownership interest of Dealer.
DEALER COVENANTS. You will: (i) conduct business in a manner that reflects favorably at all times on the Products and the good name, goodwill and reputation of ▇▇▇▇▇▇▇▇; (ii) avoid deceptive, misleading or unethical practices that are or might be detrimental to ▇▇▇▇▇▇▇▇ or ▇▇▇▇▇▇▇▇ Products; (iii) make no false or misleading representations with regard to ▇▇▇▇▇▇▇▇ or ▇▇▇▇▇▇▇▇ Products; (iv) not publish or employ, or cooperate in the publication or employment of, any misleading or deceptive advertising material with regard to ▇▇▇▇▇▇▇▇ or ▇▇▇▇▇▇▇▇ Products; and (v) make no representations, warranties or guarantees to customers or to the public with respect to the specifications, features or capabilities of ▇▇▇▇▇▇▇▇ Products that are inconsistent with the Style Guide.