Common use of Asset Management Contracts Clause in Contracts

Asset Management Contracts. In the case of accounts receivable pertaining to Asset Management Contracts, the aggregate amount of accounts receivable which are more than 120 days past due will not exceed five percent (5%) of the aggregate amount of all such accounts receivable. Notwithstanding the Borrowers' internal record keeping procedures, an account receivable shall not be deemed to be more than 120 days past due with respect to any individual Asset Management Contract until 120 days shall have elapsed following the date such contract was executed, delivered and made effective. For purposes of this calculation, contracts that have been amended or otherwise modified or waived in order to cure any delinquency shall be deemed to be delinquent in their entireties.