Common use of Payment and Security Clause in Contracts

Payment and Security. 6.1 The Supplier has the right to invoice from the moment of formation of an Agreement. Unless expressly agreed otherwise in writing, payment shall be made within 30 calendar days of the invoice date. Payment must be made in GBP and without any set-off, discount and/or suspension. 6.2 In the event of late payment of an invoice, the Customer, without any notice of default, will be in default and all payment obligations of the Customer will immediately become due and payable, without prejudice to the other rights accruing to Supplier. This is also the case if the Customer files a petition for its own liquidation, if a petition for its liquidation is filed or if the Customer is declared to be in a state of liquidation or if the Customer applies for a moratorium, if a moratorium for the Customer is applied for or if a moratorium is granted to the Customer. 6.3 In the event of late payment of an invoice, the Supplier may, without limiting its other rights: a. charge interest on such sums at 5% a year above the base rate of Lloyds Bank from time to time in force. Interest shall accrue on a daily basis and apply from the due date for payment until actual payment in full, whether before or after judgment; b. suspend any deliveries to the Customer in whole or in part; and/or c. cancel the Agreement. 6.4 Payments made by the Customer shall first of all serve to settle any payable interest and costs and subsequently the longest outstanding payable invoices, even if the Customer should state that the payment is related to a subsequently sent invoice. 6.5 At the time of conclusion of the Agreement or after conclusion of the Agreement, Supplier has the right to require advance payment from the Customer or proper security, in whole or in part, for the fulfilment of the obligations of the Customer under the Agreement, in the form of a bank guarantee or a reasonably equivalent security and Supplier has the right, until this security has been provided, to suspend its obligations towards the Customer.