Common use of Cease Shipments Clause in Contracts

Cease Shipments. The Insured shall not incur any further exposure following the occurrence of an event or circumstances that may reasonably be expected to result in a Loss and to any Buyer that becomes Insolvent. The Insurer has no liability for further Shipments made to any Buyer which has become overdue in any payment obligation (whether or not insured under the Policy) to the Insured beyond the Stop Shipments Date, unless the Due Date is postponed in accordance with the Postponement of Due Date clause. If the Due Date is postponed in accordance with the Postponement of Due Date clause, the Stop Shipments Date shall be the date to which the Due Date is postponed. The Insurer has no liability for further Shipments made to any Buyer beyond this revised Stop Shipments Date, if payment is not made on a Due Date postponed in accordance with the Postponement of Due Date clause.