Delayed Payment Privilege Clause Samples
The Delayed Payment Privilege clause allows one party to postpone payment obligations beyond the standard due date under certain conditions. Typically, this clause outlines the circumstances under which payment can be delayed, such as financial hardship or pending delivery of goods, and may specify any interest or penalties that accrue during the delay. Its core function is to provide flexibility in payment schedules, helping parties manage cash flow and avoid default in situations where immediate payment is not feasible.
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Delayed Payment Privilege. (a) The Borrowers have requested the privilege of delaying payment of a Loan in the limited instances where Collateral is sold by a Borrower to a purchaser for whom both the Borrower Representative and the Administrative Agent have agreed to a delayed payment period (the "Delayed Payment Privilege") and the portion of the purchase price for such Collateral (the “Collateral Amount Financed”) subject to such Delayed Payment Privilege. In no event shall the Collateral Amount Financed exceed $60,000,000 without the consent of the Required Lenders. Notwithstanding anything contained herein to the contrary, the Loan Parties acknowledge and agree that the Administrative Agent’s security interest in any and all vehicles sold to a customer, and in which event the full payment thereof by cash or on the basis of a properly perfected retail installment contract or other security agreement in favor of the Administrative Agent is not made contemporaneous with the delivery of such Collateral by the Borrowers (the "Delayed Payment Collateral"), shall remain in full force and effect in such Delayed Payment Collateral and shall not be relinquished, extinguished, released or terminated as a consequence of such sale or delivery unless and until the payment is thereafter made directly to the Administrative Agent or jointly to the Borrowers and the Administrative Agent. Moreover, Borrowers are expressly prohibited and shall not have any express, implied or apparent authority to sell, lease, transfer or otherwise dispose of any Delayed Payment Collateral. The terms of this Section 2.10 shall not be altered, modified, supplemented, qualified, waived or amended by reason of any agreement (unless in writing executed by the Borrowers and the Administrative Agent), or by the course of performance, course of dealing, or usage of trade by the Borrowers and the Administrative Agent or any of them.
(b) Any previously executed Agreement for the Delayed Payment Privilege for New Floor Plan Units among the Borrowers and General Electric Capital Corporation is superseded by the terms and conditions of this Agreement for all transactions arising on or after the effective date thereof.
(c) The Borrower Representative shall advise the Administrative Agent of each and every potential transaction in which the Borrower Representative requests the Administrative Agent to grant the Delayed Payment Privilege, and the period of time for which the Delayed Payment Privilege is being requested. Such requ...
Delayed Payment Privilege. Debtors have requested the privilege of delaying payment of the Advance applicable, in the limited instances where Collateral is sold by Debtors to a purchaser for whom both an Obligor and GE Capital have agreed to a delayed payment period (the “Delayed Payment Privilege”).