Common use of Solvency of Customers Clause in Contracts

Solvency of Customers. Each Customer, to each Credit Party’s knowledge, as of the date each Account is created, is and will be solvent and able to pay all Accounts on which the Customer is obligated in full when due or with respect to such Customers of each Credit Party who are not solvent, each Credit Party has set up on its books and in its financial records bad debt reserves adequate to cover such Accounts.

Appears in 5 contracts

Samples: Securities Purchase Agreement and Security Agreement (Fusion Telecommunications International Inc), Securities Purchase Agreement and Security Agreement (Fusion Telecommunications International Inc), Securities Purchase Agreement and Security Agreement (Fusion Telecommunications International Inc)

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Solvency of Customers. Each Customer, to the best of each Credit Loan Party’s knowledge, as of the date each Account Receivable is created, is and will be solvent and able to pay all Accounts Receivables on which the Customer is obligated in full when due or with respect to such Customers of each Credit any Loan Party who are not solvent, each Credit solvent such Loan Party has set up on its books and in its financial records bad debt reserves adequate to cover such AccountsReceivables.

Appears in 3 contracts

Samples: Loan and Security Agreement (Bucyrus International Inc), Loan and Security Agreement (Dri Corp), Security Agreement (Dri Corp)

Solvency of Customers. Each Customer, to the best of each Credit Loan Party’s knowledge, as of the date each Account Receivable is created, is and will be solvent and able to pay all Accounts Receivables on which the Customer is obligated in full when due or with respect to such Customers of each Credit Party Loan Parties who are not solvent, each Credit solvent such Loan Party has set up on its books and in its financial records bad debt reserves adequate to cover such AccountsReceivables.

Appears in 3 contracts

Samples: Financing Agreement (Rafaella Apparel Group,inc.), Financing Agreement (Rafaella Apparel Group,inc.), Financing Agreement (Verrazano,inc.)

Solvency of Customers. Each Customer, to each the best of the Credit Party’s Parties' knowledge, as of the date each Account Receivable is created, is and will be solvent and able to pay all Accounts Receivables on which the Customer is obligated in full when due or with respect to such Customers of each the Credit Party Parties who are not solvent, each the applicable Credit Party has set up on its books and in its financial records bad debt reserves adequate to cover such AccountsReceivables.

Appears in 2 contracts

Samples: Security Agreement (Evergreen International Aviation Inc), Security Agreement (Us Home & Garden Inc)

Solvency of Customers. Each Customer, to the best of each Credit Loan Party’s knowledge, as of the date each Account Receivable is created, is and will be solvent and able to pay all Accounts Receivables on which the Customer is obligated in full when due or or, with respect to such Customers of each Credit any Loan Party who are known to such Loan Party not solventto be solvent on the date each Receivable is created, each Credit such Loan Party has set up on its books and in its financial records bad debt reserves adequate to cover such AccountsReceivables.

Appears in 2 contracts

Samples: Security Agreement (Stream Global Services, Inc.), Security Agreement (Stream Global Services, Inc.)

Solvency of Customers. Each Customer, to each Credit Party’s knowledge, as of the date each Account is created, is and will be solvent and able to pay all Accounts on which the Customer is obligated in full when due or with respect to such Customers of each Credit Party who are not solvent, each Credit Party has set up on its books and in its financial records bad debt reserves adequate to cover such Accounts.. (c)

Appears in 1 contract

Samples: Securities Purchase Agreement and Security Agreement

Solvency of Customers. Each Customer, to each Credit Note Party’s knowledge, as of the date each Account is created, is and will be solvent and able to pay all Accounts on which the Customer is obligated in full when due or with respect to such Customers of each Credit Note Party who are not solvent, each Credit Note Party has set up on its books and in its financial records bad debt reserves adequate to cover such Accounts.

Appears in 1 contract

Samples: Note and Warrant Purchase Agreement and Security Agreement (Meridian Waste Solutions, Inc.)

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Solvency of Customers. Each Customer, to each Credit Party’s 's reasonable knowledge, as of the date each Account Receivable is created, is and will be solvent and able to pay all Accounts Receivables on which the Customer is obligated in full when due or with respect to such Customers of each Credit Party Borrower who are not solvent, each Credit Party solvent Borrower has set up on its books and in its financial records bad debt reserves adequate to cover such AccountsReceivables.

Appears in 1 contract

Samples: Security Agreement (Perma Fix Environmental Services Inc)

Solvency of Customers. Each Customer, to the best of each Credit Party’s 's knowledge, as of the date each Account Receivable is created, is and will be solvent and able to pay all Accounts Receivables on which the Customer is obligated in full when due or with respect to such Customers of each any Credit Party who are not solvent, each solvent such Credit Party has set up on its books and in its financial records bad debt reserves adequate to cover such AccountsReceivables.

Appears in 1 contract

Samples: Security Agreement (Sunsource Inc)

Solvency of Customers. Each CustomerCustomer (other than Customers having Receivables not in excess of $250,000 in the aggregate at any time outstanding), to each Credit Party’s actual knowledge, as of the date each Account Receivable is created, is and will be solvent and able to pay all Accounts Receivables on which the Customer is obligated in full when due or with respect to such Customers of each Credit Party Parties who are not not, to any Credit Party’s actual knowledge, solvent, each Credit Party the applicable Borrower has set up on its books and in its financial records bad debt reserves adequate to cover such AccountsReceivables.

Appears in 1 contract

Samples: Term Loan and Security Agreement (Direct Digital Holdings, Inc.)

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