Repossessed Merchandise Clause Samples
The 'Repossessed Merchandise' clause outlines the rights and procedures related to goods that have been reclaimed by a seller or lender after a buyer defaults on payment or other contractual obligations. Typically, this clause specifies how the repossessed items will be handled, such as whether they will be resold, returned to inventory, or disposed of, and may address the allocation of any proceeds from resale. Its core practical function is to clarify the parties' rights and responsibilities regarding repossessed goods, thereby reducing disputes and ensuring a clear process for handling such merchandise.
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Repossessed Merchandise. The Seller agrees to purchase Merchandise repossessed by the Purchaser from an Obligor. The purchase price payable by the Seller will be the fair market value of such unit of repossessed Merchandise as mutually agreed upon between the Purchaser and the Seller. Additionally, if any Receivable becomes a Defaulted Receivable, the Seller agrees to return to the Purchaser the amount (up to the outstanding balance of such Receivable) of any unearned premium for credit insurance and unearned premium (which is the amount paid by Conn’s to fund the servicer agreements) for repair service agreements (unless such amount has been paid directly to the Purchaser by the applicable insurance company). Any amounts due to the Purchaser in accordance with this Section 6.6, (i) shall be paid in cash by the Seller on the next Business Day following such purchase or cancellation, (ii) shall constitute Recoveries and (iii) shall be deposited in the Collection Account. The Purchaser shall be responsible for delivering repossessed Merchandise to the Seller location.
Repossessed Merchandise. The Originator agrees to purchase Merchandise repossessed by the Purchaser from an Obligor. The purchase price payable by the Originator will be the fair market value of such unit of repossessed Merchandise as mutually agreed upon between the Purchaser and the Originator. Additionally, if any Purchased Receivable becomes a Charged-Off Receivable, the Originator agrees to return to the Purchaser the amount (up to the outstanding balance of such Purchased Receivable) of any premium for service maintenance contracts or credit insurance (unless such amount has been paid directly to the Purchaser by the applicable insurance company). Any amounts due to the Purchaser in accordance with this Section (i) shall be paid in cash by the Originator or, if no Purchase Termination Event or Series Pay Out Event has occurred and is continuing, at the Purchaser's option, credited against the principal amount owing on the Originator Note on the next Business Day following such purchase or cancellation, (ii) shall constitute Recoveries and (iii) shall be deposited in the Collection Account. The Purchaser shall be responsible for delivering repossessed Merchandise to the Originator location.