Checks-in-Transit definition
Checks-in-Transit means any checks issued by the Company or its Subsidiaries which have been outstanding for less than six (6) months, which have not cleared the Company’s or its Subsidiaries’ checking accounts as of the Closing Date. For the avoidance of doubt, to the extent outstanding checks have reduced the positive cash balance of the Company as shown on the books and records of the Company and, thus, the amount of Excluded Assets, such outstanding checks shall not be considered Checks-in-Transit, or Accounts Payable. The purpose of the foregoing sentence is to assure that, to the extent cash remains in the Company’s or its Subsidiaries’ checking account to cover an outstanding check which has not cleared, and accordingly, Sellers choose to retain cash in the account of the Company so that such checks are timely paid, such outstanding check shall not be considered a Check-in-Transit.