Common use of Debt Factoring Clause in Contracts

Debt Factoring. Subject to the Contractor obtaining the prior written consent of the Authority in accordance with clause A6 (Assignment of Contract), the Contractor may assign to a third Party (“the Assignee”) the right to receive payment of the Contract Price or any part thereof due to the Contractor under the Contract (including interest which the Authority incurred through late payment under the Late Payment of Commercial Debts (Interest) Act 1998). Any assignment of the right to receive payment of the Contract Price (or any part thereof) under this clause G3 shall be subject to: reduction of any sums in respect of which the Authority exercises its right of recovery under clause G1.j; all related rights of the Authority under the Contract in relation to the recovery of sums due but unpaid; and the Authority receiving notification under both clauses G3.b and G3.c.(2). In the event that the Contractor obtains from the Authority the consent to assign the right to receive the Contract Price (or any part thereof) under clause G3.a above, the Contractor shall notify the Authority in writing of the assignment and the date upon which the assignment becomes effective. The Contractor shall ensure that the Assignee:

Debt Factoring. Subject to the Contractor obtaining the prior written consent of the Authority in accordance with clause condition A6 (Assignment of Contract), the Contractor may assign to a third Party (“the Assignee”) the right to receive payment of the Contract Price or any part thereof due to the Contractor under the Contract (including interest which the Authority incurred through late payment under the Late Payment of Commercial Debts (Interest) Act 1998). Any assignment of the right to receive payment of the Contract Price (or any part thereof) under this clause condition G3 shall be subject to: reduction of any sums in respect of which the Authority exercises its right of recovery under clause G1.j; all related rights of the Authority under the Contract in relation to the recovery of sums due but unpaid; and the Authority receiving notification under both clauses G3.b and G3.c.(2). In the event that the Contractor obtains from the Authority the consent to assign the right to receive the Contract Price (or any part thereof) under clause G3.a aboveG3.a, the Contractor shall notify the Authority in writing of the assignment and the date upon which the assignment becomes effective. The Contractor shall ensure that the Assignee: