Common use of PAYMENT TERMS AND SETTLEMENT OF ACCOUNTS Clause in Contracts

PAYMENT TERMS AND SETTLEMENT OF ACCOUNTS. All monies or accounts due DEALER from DISTRIBUTOR will be considered net of DEALER's obligations to DISTRIBUTOR on DEALER's parts/open account. DISTRIBUTOR may deduct or offset any amounts due or to become due from DEALER to DISTRIBUTOR, or any amounts held by DISTRIBUTOR, from or against any sums or accounts due or to become due from DISTRIBUTOR to DEALER. Payments by DEALER to DISTRIBUTOR shall be made by electronic bank draft or in any other manner prescribed by DISTRIBUTOR and shall be applied against DEALER's indebtedness in accordance with DISTRIBUTOR's policies and practices. DISTRIBUTOR shall have the right to apply payments received from DEALER to any amount owed to DISTRIBUTOR, in DISTRIBUTOR's sole discretion. All obligations owed by DEALER to DISTRIBUTOR shall be due and payable when billed, unless other terms are established by DISTRIBUTOR in writing. Under no circumstances will DISTRIBUTOR enter into a new Agreement with a proposed transferee unless DEALER first makes arrangements acceptable to DISTRIBUTOR to satisfy any outstanding obligations to DISTRIBUTOR on DEALER's parts/open account.