Common use of Collectability of Accounts Receivable Clause in Contracts

Collectability of Accounts Receivable. All accounts receivable included in the Company Financial Statements, net of any reserves for losses as reflected thereon, and net of costs, which costs shall not exceed $15,000 in the aggregate, are fully collectible in cash within three (3) months from the date hereof, with the exception of financed accounts receivable which by their terms are not payable in full within such three-month period ("Collectible Accounts Receivable"). All accounts receivable which cannot be fully collectable in cash within three (3) months from the date hereof with the exception of accounts receivable which by their term are not payable in full within such three month period are uncollectable accounts receivable ("Uncollectable Accounts Receivable"). Credits, returns and rebates shall not constitute payment of accounts receivable. (In determining whether there has been any nonpayment of any Account Receivable, all payments received from any account debtor shall, unless otherwise specified by such account debtor, be first applied to the oldest outstanding account Receivable of such account debtor until all accounts receivable of such account debtor have been paid in full.)