Common use of Optional Credit Terms Clause in Contracts

Optional Credit Terms. Chevron’s affiliate, Chevron Finance Company (“CFC”), has authorized Chevron to make sales of petroleum products against the credit of CFC to Chevron Marketers that CFC approves for such credit sales. If Marketer is so approved (and continues to be so approved) by CFC and Chevron elects to make sales to Marketer under the CFC credit arrangement, then any credit extended on such sales shall be extended by CFC and Marketer shall make payments to CFC for all petroleum products purchased hereunder on credit. Marketer acknowledges the importance of payment within the terms specified when credit is extended and agrees that past due amounts shall bear interest at the rate of 18% per year or the maximum rate permitted by the state of Marketer’s residence as specified in section 20 of this agreement, whichever is less. If Marketer fails to make payment within the specified terms, such failure shall, at Chevron’s option, be deemed a breach of this entire agreement and, in addition to such other remedies as it may have, Chevron shall have thereafter the right to demand advance cash payment, to withhold deliveries until such advance payment (including payment of all amounts then outstanding for petroleum products delivered by Chevron to Marketer hereunder) is received, or to terminate this agreement. The acceptance of any payment by CFC or Chevron after the due date shall not waive any of CFC’s or Chevron’s rights hereunder nor shall such withholding of deliveries or termination of this agreement affect any obligation of Marketer hereunder. If credit is extended to Marketer by CFC or Chevron, Marketer shall furnish CFC and Chevron with such information regarding Marketer’s financial condition as CFC or Chevron may reasonably request from time to time.

Optional Credit Terms. ChevronChevronTexaco’s affiliate, Chevron Finance Company (“CFC”), has authorized Chevron ChevronTexaco to make sales of petroleum products against the credit of CFC to Chevron Marketers Jobbers that CFC approves for such credit sales. If Marketer Jobber is so approved (and continues to be so approved) by CFC and Chevron ChevronTexaco elects to make sales to Marketer Jobber under the CFC credit arrangement, then any credit extended on such sales shall be extended by CFC and Marketer Jobber shall make payments to CFC for all petroleum products purchased hereunder on credit. Marketer Jobber acknowledges the importance of payment within the terms specified when credit is extended and agrees that past due amounts shall bear interest at the rate of 18% per year or the maximum rate permitted by the state of MarketerJobber’s residence as specified in section 20 of this agreement, whichever is less. If Marketer Jobber fails to make payment within the specified terms, such failure shall, at ChevronChevronTexaco’s option, be deemed a breach of this entire agreement and, in addition to such other remedies as it may have, Chevron ChevronTexaco shall have thereafter the right to demand advance cash payment, to withhold deliveries until such advance payment (including payment of all amounts then outstanding for petroleum products delivered by Chevron ChevronTexaco to Marketer Jobber hereunder) is received, or to terminate this agreement. The acceptance of any payment by CFC or Chevron ChevronTexaco after the due date shall not waive any of CFC’s or ChevronChevronTexaco’s rights hereunder nor shall such withholding of deliveries or termination of this agreement affect any obligation of Marketer Jobber hereunder. If credit is extended to Marketer Jobber by CFC or ChevronChevronTexaco, Marketer Jobber shall furnish CFC and Chevron ChevronTexaco with such information regarding MarketerJobber’s financial condition as CFC or Chevron ChevronTexaco may reasonably request from time to time.