Acceptable Accounts Clause Samples
The Acceptable Accounts clause defines the criteria that financial accounts must meet to be considered valid and usable under the agreement. Typically, this clause outlines specific requirements such as the type of financial institution, account status, and compliance with relevant laws or regulations. For example, it may require that accounts be maintained at reputable banks and be free from liens or restrictions. The core function of this clause is to ensure that only reliable and secure accounts are used for transactions, thereby reducing the risk of fraud or default.
Acceptable Accounts. An Acceptable Account must meet all of the following requirements and conditions unless waived in writing by Summit.
a. Client has sole and unconditional good title to the Account and the Account and any goods sold to create the Account are free from any other security interest, assignment, lien or other encumbrance of any type.
b. The Account is a bona fide obligation of the Account Debtor for the amount identified on the records of Client and there have been no payments, deductions, credits, payment terms, or other modifications or reductions in the amount owing on such Account except as reported to Summit in writing prior to making an Advance based on the Account.
c. The Account must be submitted to Summit within Sixty (60) days of the date the goods are sold or the services performed giving rise to the Account are completed.
d. There are no defenses or setoffs to payment of the Account which can be asserted by way of defense or counterclaim against Client or Summit.
e. The Account will be timely paid in full by the Account Debtor.
f. There have been no extensions, modifications, or other agreements relating to payment of such Account except as reported to Summit in writing prior to making an Advance.
g. Any services performed or goods sold which give rise to the Account have been completed and delivered and have been rendered or sold in compliance with all applicable laws, ordinances, rules and regulations and were performed or sold in the ordinary course of Client’s business.
h. The Account Debtor is located or authorized to do business within the United States or the Account has been insured under a policy of credit insurance from an insurer and upon terms acceptable to Summit.
i. No proceeding has been commenced or petition filed under any bankruptcy or insolvency law by or against the Account Debtor; no receiver, trustee or custodian has been appointed for any part of the property of the Account Debtor; and no property of the Account Debtor has been assigned for the benefit of creditors.
j. Neither the Account, nor any invoice, credit application, ▇▇▇▇, billing memorandum, correspondence, or any other document relating to an Account, contracts for or charges interest or any other charge in excess of the maximum non-usurious rate allowed pursuant to applicable law.
k. The Account is not past the Account Due Date. Artisanal Cheese, LLC 1/16/09 Initials
l. If the total of the outstanding Purchased Accounts owing by any single Account Debtor equals six...
Acceptable Accounts. ALTRES will purchase only acceptable accounts. An acceptable account must meet all of the following requirements and conditions:
a. The account shall be evidenced by an invoice submitted to ALTRES in duplicate meeting the following conditions:
(1) Contain the Client name, invoice number, and date;
(2) Contain the full and complete name and address of the account debtor;
(3) Clearly set forth the amount owing and to be collected by ALTRES;
(4) State the due date and any other terms for payment of the account;
(5) Be completely legible;
(6) Be stamped with a notice, in a form acceptable to ALTRES, stating that the account has been purchased by ALTRES and is payable to ALTRES; and
(7) Be accompanied by such other documents as are required by ALTRES.
b. The account shall be submitted to ALTRES within seven (7) business days of the date the goods are sold or services performed giving rise to the account are completed, except as otherwise approved in writing by ALTRES.
c. The invoice shall be accompanied by proof of delivery of goods or performance of services acceptable to ALTRES.
d. The account shall meet and comply with the following conditions:
(1) Client has sole and unconditional good title to the account, the account and any goods sold to create the account being free from any other security interest, assignment, lien or other encumbrance of any type;
(2) The account is a bona fide obligation of the account debtor for the amount identified on the account and there have been no payments, deductions, credits, payment terms, or other modifications or reductions in the amount owing on such account except as set forth on the face of the invoice;
(3) To the best knowledge of Client, there are no defenses or setoffs to payment of the account which can be asserted by way of defense or counterclaim against Client or ALTRES;
(4) To the best knowledge of Client, the account will be timely paid in full by the account debtor;
(5) Any services performed or goods sold which give rise to the account have been rendered or sold in compliance with all applicable laws, ordinances, rules and regulations and were performed or sold in the ordinary course of Client's business;
(6) There have been no extensions, modifications, or other agreements relating to payment of such account except as shown upon the face of the invoice;
(7) The account debtor is located or authorized to do business within the United States; and
(8) No proceeding has been commenced or petition filed under a...
Acceptable Accounts. (a) As used herein, the term "Acceptable Accounts" means and refers to such of the Borrower's and its Subsidiary's Accounts and Accounts Receivable (as defined below) as arise in the ordinary course of the Borrower's and its Subsidiary's business for goods sold and/or services rendered by the Borrower or a Subsidiary, from Holliston, Massachusetts, and/or the United Kingdom, and/or Quebec, Canada, and/or France, which Accounts and Accounts Receivable have been reasonably determined by the Agent to be satisfactory and have been earned by performance and are owed to the Borrower or a Subsidiary by such of the Borrower's or such Subsidiary's trade customers as the Agent reasonably determines to be satisfactory, in the Agent's sole discretion in each instance.
Acceptable Accounts. The definition of “Acceptable Accounts” set forth in Rider A to the Account Purchase Agreement is hereby amended by deleting clause (b) of such definition in its entirety and substituting the following therefor: