Common use of Returned Instruments Clause in Contracts

Returned Instruments. In the event that any check or other instrument received in payment of a Receivable shall be returned uncollected for any reason, Secured Party may, in its sole discretion, again forward the same for collection or return the same to Debtor. Upon receipt of a returned check or instrument by Debtor, Debtor shall immediately make the necessary entries on its books and records to reinstate the Receivable as outstanding and unpaid and immediately notify Secured Party of such entries, Pursuant to Section 1.1(o)(iii), the Receivable with respect to which such check or instrument was received shall thereupon become an Ineligible Receivable.

Returned Instruments. In the event that any check or other instrument received in payment of a Receivable shall be returned resumed uncollected for any reason, Secured Party may, in its sole discretion, again forward the same for collection or return the same to Debtor. Upon receipt of a returned resumed check or instrument by Debtor, Debtor shall immediately make the necessary entries on its books and records to reinstate the Receivable as outstanding and unpaid and immediately notify Secured Party of such entries, Pursuant to Section 1.1(o)(iii), the Receivable with respect to which such check or instrument was received shall thereupon become an Ineligible Receivable.