Common use of Payment of Accounts Receivable Clause in Contracts

Payment of Accounts Receivable. All payments of Accounts Receivable and other payments on behalf of Client received by Factor shall be credited to Client's account. No check, draft or other instrument received by Factor shall constitute final payment unless and until such check, draft or other instrument shall have been actually collected. The amount of the Purchase Price of any Factor Risk Account Receivable which remains unpaid will be deemed collected and will be credited to Client's account as of the earlier of the following dates: (a) the date of the Account Receivable's longest maturity if any proceeding or petition is instituted or filed by or against the customer for relief under any federal or state bankruptcy or insolvency law, code or act, or if a receiver or trustee is appointed for the customer; or (b) as of the last day of the third (3rd) month following its longest maturity date if such Factor Risk Account Receivable remains unpaid as of such date without the happening of any of the events specified in the preceding clause (a). If any Factor Risk Account Receivable credited to Client's account is not paid for any reason other than the customer's financial inability to pay, Factor shall reverse the credit and charge Client's account accordingly and such Account Receivable shall then be deemed a Client Risk Account Receivable.

Payment of Accounts Receivable. All payments of Accounts Receivable and other payments on behalf of Client Company received by Factor shall be credited to ClientCompany's accountReserve Account. No check, draft or other instrument received by Factor shall constitute final payment unless and until such check, draft or other instrument shall have been actually collectedcollected by Factor in immediately available funds. The amount of the Purchase Price of any Factor Risk Account Receivable which remains unpaid will be deemed collected and will be credited to ClientCompany's account as of the earlier of the following dates: (a) the date of the Account Receivable's Receivables longest maturity if any proceeding or petition is instituted or filed by or against the customer Customer for relief under any federal or state bankruptcy or insolvency law, code or act, or if a receiver or trustee is appointed for the customerCustomer; or (b) as of the last day of the third fourth (3rd4th) month following its longest maturity date if such Factor Risk Account Receivable remains unpaid as of such date without the happening of any of the events specified in the preceding clause (a). If any Factor Risk Account Receivable credited to ClientCompany's account Reserve Account is not paid for any reason other than the customerCustomer's financial inability to pay, Factor shall reverse the credit and charge ClientCompany's account Reserve Account accordingly and such Account Receivable shall then be deemed a Client Company Risk Account Receivable.

Payment of Accounts Receivable. All payments of Accounts Receivable and other payments on behalf of Client received by Factor shall be credited to Client's accountaccount on the day of receipt by Factor. No check, draft or other instrument received by Factor shall constitute final payment unless and until such check, draft or other instrument shall have been actually collected. The amount of the Purchase Price of any Factor Risk Account Receivable which remains unpaid will be deemed collected and will be credited to Client's account as of the earlier of the following dates: (a) the date of the Account Receivable's longest maturity if any proceeding or petition is instituted or filed by or against the customer for relief under any federal or state bankruptcy or insolvency law, code or act, or if a receiver or trustee is appointed for the customer; or (b) as of the last day of the third (3rd) fourth month following its longest maturity date if such Factor Credit Risk Purchased Account Receivable remains unpaid as of such date without the happening of any of the events specified in the preceding clause (a). If any Factor Risk Account Receivable credited to Client's account is not paid for any reason other than the customer's financial inability to pay, Factor shall reverse the credit and charge Client's account accordingly and such Account Receivable shall then be deemed a Client Risk Account Receivable, and Client shall pay interest thereon as provided for herein.

Payment of Accounts Receivable. All payments of Accounts Receivable and other payments on behalf of Client Company received by Factor shall be credited to ClientCompany's accountReserve Account. No check, draft or other instrument received by Factor shall constitute final payment unless and until such check, draft or other instrument shall have been actually collectedcollected by Factor in immediately available funds. The amount of the Purchase Price of any Factor Risk Account Receivable which remains unpaid will be deemed collected and will be credited to ClientCompany's account as of the earlier of the following dates: (a) the date of the Account Receivable's Receivables longest maturity if any proceeding or petition is instituted or filed by or against the customer Customer for relief under any federal or state bankruptcy or insolvency law, code or act, or if a receiver or trustee is appointed for the customerCustomer; or (b) as of the last day of the third fourth (3rd4th) month following its longest maturity date if such Factor Risk Account Receivable remains unpaid as of such date without the happening of any of the events specified in the preceding clause (a). If any Factor Risk Account Receivable credited to ClientCompany's account Reserve Account is not paid for any reason other than the customerCustomer's financial inability to pay, Factor shall reverse the credit and charge ClientCompany's account Reserve Account accordingly and such Account Receivable shall then be deemed a Client Company Risk Account Receivable.. Capstone Business Credit, LLC BN 1086443v3