Common use of Ineligible Accounts Clause in Contracts

Ineligible Accounts. CDF will have the sole right to determine eligibility of Accounts in CDF’s reasonable discretion, and in that regard, the following Accounts will be deemed ineligible: (a) Accounts created from the sale of goods and services on non-standard terms and/or that allow for payment to be made more than thirty (30) days from the date of sale; (b) Accounts unpaid more than ninety (90) days from date of invoice; (c) all Accounts of any obligor if fifty percent (50%) or more of the aggregate outstanding balance of such obligor’s Accounts are unpaid for more than ninety (90) days from the date of invoice; (d) Accounts for which the obligor is an officer, director, shareholder, partner, member, owner, employee, agent, parent, subsidiary, affiliate of, or is related to Dealer or has common shareholders, officers, directors, owners, partners or members with Dealer; (e) consignment sales; (f) Accounts for which the payment is or may be conditional; (g) Accounts for which the obligor is not a commercial or institutional entity or is not a resident of the United States or Canada; (h) Accounts with respect to which any warranty or representation provided in Subsection 3.4 or Subsection 5.1 is not true and correct; (i) Accounts which represent goods or services purchased for a personal, family or household purpose; (j) Accounts which represent goods used for demonstration purposes or loaned by the Dealer to another party; (k) Accounts which are progress payment, barter, or contra accounts; (l) Accounts in which CDF does not have a perfected, first security interest therein; and (m) any and all other Accounts which CDF deems to be ineligible.

Ineligible Accounts. CDF DFS will have the sole right to determine eligibility of Accounts in CDF’s reasonable discretionand, and without limiting DFS' discretion in that regard, the following Accounts will be deemed ineligible: (a) Accounts created from the sale of goods and services on non-standard terms and/or that allow for payment to be made more than thirty (30) days from the date of sale; (b) Non-Government Accounts unpaid more than ninety (90) days from date of invoice and Government Accounts unpaid more than one-hundred twenty (120) days from date of invoice; (c) all Accounts of any obligor if with fifty percent (50%) or more of the aggregate outstanding balance of such obligor’s Accounts are unpaid for more than ninety (90) days from the date of invoice; (d) Accounts for which the obligor is an officer, director, shareholder, partner, member, owner, employee, agent, parent, subsidiary, affiliate of, or is related to Dealer or has common shareholders, officers, directors, owners, partners or members with Dealermembers; (e) consignment sales; (f) Accounts for which the payment is or may be conditional; (g) Accounts for which the obligor is not a commercial or institutional entity or is not a resident of the United States or Canada; (h) Accounts with respect to which any warranty or representation provided in Subsection 3.4 or Subsection 5.1 is not true and correct; (i) Accounts which Dealer knows represent goods or services purchased for a personal, family or household purpose; (j) Accounts which represent goods used for demonstration purposes or loaned by the Dealer to another party; (k) Accounts which are progress payment, barter, or contra accounts; and (l) Accounts in which CDF does not have a perfected, first security interest therein; and (m) any and all other Accounts which CDF DFS reasonably deems to be ineligible. If DFS determines that any Account is or becomes an ineligible Account and such ineligible Account exceeds the Available Credit (as such term is defined in the Paydown Addendum dated the date hereof), immediately upon notice thereof from DFS, Dealer will pay to DFS an amount equal to the monies loaned by DFS for such ineligible Account.

Ineligible Accounts. CDF will have the sole right to determine eligibility of Accounts in and, without limiting CDF’s reasonable discretion, and discretion in that regard, the following Accounts will be deemed ineligible: (a) Accounts created from the sale of goods and services on non-standard terms and/or that allow for payment to be made unpaid more than thirty sixty (3060) days from the due date of saleinvoice; (b) Accounts unpaid more than ninety (90) days from date with payment terms in excess of invoice360 days; (c) Accounts which are originated with COD or cash in advance terms; (d) Accounts which represent an obligation which is created in settlement or compromise of a prior amount due or a disputed amount; (e) Accounts which are due from an account debtor who is subject to any bankruptcy, insolvency, receivership or similar proceeding; (f) all Accounts of any obligor if fifty percent (50%) or more of the aggregate outstanding balance of such obligor’s Accounts are unpaid for more than ninety sixty (9060) days from the due date of invoice; (dg) Accounts for which the obligor is an officer, director, shareholder, partner, member, owner, employee, agent, parent, subsidiary, affiliate ofof with the exception of Cummins MerCruiser Diesel Marine LLC., or is related to Dealer Borrower or has common shareholders, officers, directors, owners, partners or members with DealerBorrower; (eh) consignment sales; (fi) Accounts for which the payment is or may be conditional; (gj) Accounts for which the obligor is not a commercial or institutional entity or is not a resident of the United States or CanadaStates; (hk) Accounts with respect to which any warranty or representation provided in Subsection 3.4 or Subsection 5.1 is not true and correct; (il) Accounts which represent goods or services purchased for a personal, family or household purpose; (jm) Accounts which represent goods used for demonstration purposes or loaned by the Dealer Borrower to another party; (kn) Accounts which are progress payment, barter, or contra accounts; (lo) Accounts in which any Department, agency or instrumentality of the United States Government is an obligor in the event the total of all such Accounts exceeds five million dollars ($5,000,000), unless the provisions of the Federal Assignment of Claims Act have been satisfactorily complied with; (p) any amounts representing service charges or interest with respect to Accounts; (q) Accounts in which CDF does not have a perfected, first security interest therein; and (mr) any and all other Accounts which CDF reasonably deems to be ineligible. If CDF determines that any Account is or becomes an ineligible Account, immediately upon notice thereof from CDF, Borrower will pay to CDF an amount equal to the monies loaned by CDF for such ineligible Account.

Ineligible Accounts. CDF DFS will have the sole right to determine eligibility of Accounts in CDF’s reasonable discretionand, and without limiting DFS' discretion in that regard, the following Accounts will be deemed ineligible: (a) Accounts created from the sale of goods and services on non-standard terms and/or that allow for payment to be made more than thirty sixty (3060) days from the date of sale; (b) Accounts unpaid more than ninety (90) days from date of invoice; (c) all Accounts of any obligor if with fifty percent (50%) or more of the aggregate outstanding balance of such obligor’s Accounts are unpaid for more than ninety (90) days from the date of invoice; (d) Accounts for which the obligor is an officer, director, shareholder, partner, member, owner, employee, agent, parent, subsidiary, affiliate of, or is related to Dealer or has common shareholders, officers, directors, owners, partners or members with Dealer; (e) consignment sales; (f) Accounts for which the payment is or may be conditional; (g) Accounts for which the obligor is not a commercial commercial, governmental or institutional entity or is not a resident of the United States or Canada, unless backed by credit insurance or a letter of credit (each in form, substance, amount and issued by an institution acceptable to DFS), or, in the case of Accounts where the obligor is a governmental entity, Dealer shall have complied with the Federal Assignment of Claims Act or other applicable law to direct payment in an amount acceptable to DFS; (h) Accounts with respect to which any warranty or representation provided in Subsection 3.4 or Subsection 5.1 made herein is not true and correct; (i) Accounts which represent goods or services purchased for a personal, family or household purpose; (j) Accounts which represent goods used for demonstration purposes or loaned by the Dealer to another party; (k) Accounts which are progress payment, barter, or contra accounts; and (l) Accounts in which CDF does not have a perfected, first security interest therein; and (m) any and all other Accounts which CDF DFS deems to be ineligible.

Ineligible Accounts. CDF will have the sole right to determine eligibility of Accounts in and, without limiting CDF’s reasonable discretion, and discretion in that regard, the following Accounts will be deemed ineligible: (a) Accounts created from the sale of goods and services on non-standard terms and/or that allow for payment to be made more than thirty sixty (3060)) days from the date of sale; (b) Accounts unpaid more than ninety (90) days from date of invoice; (c) all Accounts of any obligor if fifty percent (50%) or more of the aggregate outstanding balance of such obligor’s Accounts are unpaid for more than ninety (90) days from the date of invoice; (d) Accounts greater than (i) twenty percent (20%) of Dealer’s then total aggregate outstanding accounts and (ii) $500,000.00; (e) Accounts for which the obligor is an officer, director, shareholder, partner, member, owner, employee, agent, parent, subsidiary, affiliate of, or is related to Dealer or has common shareholders, officers, directors, owners, partners or members with Dealer; (ef) consignment sales; (fg) Accounts for which the payment is or may be conditional; (gh) Accounts for which the obligor is not a commercial or institutional entity or is not a resident of the United States or Canada; (hi) Accounts with respect to which any warranty or representation provided in Subsection 3.4 or Subsection 5.1 is not true and correct; (ij) Accounts which represent goods or services purchased for a personal, family or household purpose; (jk) Accounts which represent goods used for demonstration purposes or loaned by the Dealer to another party; (k1) Accounts which are progress payment, barter, or contra accounts; (lm) Accounts in which CDF does not have a perfected, first security interest therein; and (mn) any and all other Accounts which CDF deems to be ineligible. If CDF determines that any Account is or becomes an ineligible Account, immediately upon notice thereof from CDF, Dealer will pay to CDF an amount equal to the monies loaned by CDF for such ineligible Account.

Ineligible Accounts. CDF will have the sole right to determine eligibility of Accounts in and, without limiting CDF’s reasonable discretion, and discretion in that regard, the following Accounts will be deemed ineligible: ineligible (a) Accounts created from the sale of goods and services on non-standard terms and/or that allow for payment to be made more than thirty forty-five (3045) days from the date of sale; (b) Accounts unpaid more than ninety (90) days from date of invoice; (c) all Accounts of any obligor if fifty percent (50%) or more of the aggregate outstanding balance of such obligor’s Accounts are unpaid for more than ninety (90) days from the date of invoice; (d) Accounts for which the obligor is an officer, director, shareholder, partner, member, owner, employee, agent, parent, subsidiary, affiliate of, or is related to Dealer or has common shareholders, officers, directors, owners, partners or members with Dealer; (e) consignment sales; (f) Accounts for which the payment is or may be conditional; (g) Accounts for which the obligor is not a commercial or institutional entity or is not a resident of the United States or Canada; (h) Accounts with respect to which any warranty or representation provided in Subsection 3.4 or Subsection 5.1 is not true and correct; (i) Accounts which represent goods or services purchased for a personal, family or household purpose; (j) Accounts which represent goods used for demonstration purposes purpose or loaned by the Dealer to another party; (k) Accounts which are progress payment, barter, or contra accounts; (l) Accounts in which CDF does not have a perfected, first security interest therein; and (m) any and all other Accounts which CDF reasonably deems to be ineligible. If CDF determines that any Account is or becomes an ineligible Account, immediately upon notice thereof from CDF, Dealer will pay to CDF an amount equal to the monies loaned by CDF for such ineligible Account.