RISK SHARING ACKNOWLEDGMENTS AND ARRANGEMENTS Clause Samples
RISK SHARING ACKNOWLEDGMENTS AND ARRANGEMENTS. The Parties each hereby acknowledge and agree that:
a. The Purchased Future Receipts represent a portion of Seller’s Future Receipts.
b. This Agreement consummates the sale of the Purchased Future Receipts at a discount, not the borrowing of funds by the Seller from Purchaser. Purchaser does not charge the Seller and will not collect from the Seller any interest on the monies used by the Purchaser for the purchase of the Purchased Future Receipts.
c. The period of time that it will take the Purchaser to collect the Purchased Amount is not fixed, is unknown to both Parties at this time and will depend on the success of the Seller’s business.
d. The amount of the Scheduled Remittance is calculated based upon the information concerning an average amount of Daily Receipts collected by the Seller’s business immediately prior to the Effective Date of this Agreement, as well as representations regarding the Seller’s estimated Future Receipts provided by the Seller to the Purchaser.
e. The amount of Seller’s future Daily Receipts may increase or decrease over time.
f. Seller may not be in breach or in default of this Agreement in the event the full Purchased Amount is not remitted because the Seller’s business went bankrupt or otherwise ceased operations in the ordinary course of business.
RISK SHARING ACKNOWLEDGMENTS AND ARRANGEMENTS a. Seller and ▇▇▇▇▇ each hereby acknowledges and agrees that: i. The Purchased Future Receipts represent a portion of Seller’s Future Receipts. ii. This Agreement consummates the sale of the Purchased Future Receipts at a discount, not the borrowing of funds by Seller from Buyer . ▇▇▇▇▇ does not charge Seller and will not collect from Seller any interest on the monies used by ▇▇▇▇▇ for the purchase of the Purchased Future Receipts . The period of time that it will take Buyer to collect the Purchased Amount is not fixed, is unknown to both parties as of the Effective Date of this Agreement and will depend on how well or not well Seller’s business will be performing following the Effective Date . As an extreme example, in the event Seller’s business ceases to exist after ▇▇▇▇▇’s purchase of the Purchased Future Receipts as a result of a drying up of revenues for reasons outside Seller’s control, Buyer may never collect all or a substantial portion of the Purchased Future Receipts and will never recover the moneys it spent on such purchase . iii. The amount of the Initial Installment set forth in Section 1 of this Agreement is calculated based upon the information concerning an average amount of Receipts collected by Seller’s business immediately prior to the Effective Date of this Agreement, as well as representations regarding the Seller’s estimated Future Receipts, which information was provided by the Seller to Buyer . iv. The amounts of Seller’s Future Receipts may increase or decrease over time. v. If, based upon the Reconciliation and/or the Adjustment procedures described above, it will be