Finance Receivables Clause Samples

Finance Receivables. The Finance Receivables included in the Borrowing Base (i) represent bona fide loans or extensions of credit to Account Debtors in the ordinary course of the Borrower’s business; (ii) there are no setoffs, claims or disputes existing or asserted with respect thereto, and the Borrower has not made any agreement with any Account Debtor for any extension of time for the payment thereof, any compromise or settlement for less than the full amount thereof, any release of any Account Debtor from liability therefor, or any deduction therefrom except a discount or allowance allowed by the Borrower in the ordinary course of business for prompt payment and disclosed to the Agent or except as pursuant to the Credit & Collections Guidelines; (iii) to the Borrower’s knowledge, there are no facts, events or occurrences that in any way impair the validity or enforceability thereof or could reasonably be expected to reduce the amount payable thereunder as shown on the Borrower’s books and records and any statements and other reports delivered to the Agent with respect thereto; and (iv) the Borrower has not received any notice of proceedings or actions that are threatened or pending against any Account Debtor that might result in any adverse change in such Account Debtor’s financial condition other than as disclosed to the Agent. Further with respect to the Finance Receivables included in the Borrowing Base (x) the amounts shown on such records and all invoices, statements and collateral reports which may be delivered to the Agent with respect thereto are actually and absolutely owing to the Borrower as indicated thereon and are not in any way contingent; and (y) to the Borrower’s knowledge, all Account Debtors have the capacity to contract.