Common use of Standards of Commercial Reasonableness Clause in Contracts

Standards of Commercial Reasonableness. After an Event of Default, the parties acknowledge that it shall be presumed commercially reasonable and Lender shall have no duty to undertake to collect any Account, including those in which Xxxxxx receives information from an Account Debtor that a dispute exists. Furthermore, in the event Lender undertakes to collect or enforce an obligation of an Account Debtor or any other person obligated on the Collateral and ascertains that the possibility of collection is outweighed by the likely costs and expenses that will be incurred, Lender may at any such time cease any further collection efforts and such action shall be considered commercially reasonable. Before Borrower may, under any circumstances, seek to hold Xxxxxx responsible for taking any commercially unreasonable action, Borrower shall first notify Lender in writing, of all of the reasons why Xxxxxxxx believes Xxxxxx has acted in any commercially unreasonable manner and advise Lender of the action that Xxxxxxxx believes Xxxxxx should take.

Standards of Commercial Reasonableness. After an Event of Default, the parties acknowledge that it shall be presumed commercially reasonable and Lender Buyer shall have no duty to undertake to collect any Account, including those in which Xxxxxx Buyer receives information from an Account Debtor that a dispute Dispute exists. Furthermore, in the event Lender Buyer undertakes to collect or enforce an obligation of an Account Debtor or any other person obligated on the Collateral and ascertains that the possibility of collection is outweighed by the likely costs and expenses that will be incurred, Lender Buyer may at any such time cease any further collection efforts and such action shall be considered commercially reasonable. Before Borrower Seller may, under any circumstances, seek to hold Xxxxxx Xxxxx responsible for taking any commercially unreasonable action, Borrower Seller shall first notify Lender Buyer in writing, of all of the reasons why Xxxxxxxx Xxxxxx believes Xxxxxx Xxxxx has acted in any commercially unreasonable manner and advise Lender Buyer of the action that Xxxxxxxx Xxxxxx believes Xxxxxx Xxxxx should take.