Common use of Receivables Sale Agreement Clause in Contracts

Receivables Sale Agreement. The Receivables Sale Agreement is the only agreement pursuant to which the Borrower purchases the Collateral pledged hereunder, and this Agreement and the Receivables Sale Agreement represent all agreements between the Sellers, on the one hand and the Borrower, on the other hand, relating to the conveyance by any applicable Seller, as the case may be, to the Borrower of any Contracts or Contract Assets or the provision by Snap-on Credit of collection services in respect thereof (it being understood that the Borrower may be required to repurchase Contracts from time to time conveyed by it in connection with a Take-out Securitization in accordance with limited recourse obligations of the type described in Section 5.01(i)(xii)). Upon the sale of each Contract and Related Security pursuant to the Receivables Sale Agreement, the Borrower shall be the lawful owner of, and have good title to, such Collateral, free and clear of any Adverse Claim (except for Permitted Liens).