Validity of Accounts definition
Validity of Accounts. With respect to Accounts Receivable (other than Ineligible Accounts) included by the Borrower in the calculation of Borrowing Capacity pursuant to any Borrowing Base Certificate delivered to the Bank, (a) each Account is genuine and enforceable in accordance with its terms and represents an undisputed and bona fide indebtedness owing to Borrower by the Account Debtor obligated thereon; (b) there are no defenses, setoffs, or counterclaims against any Account; (c) no payment has been received on any Account and no Account is subject to any credit or extension or agreements therefor other than in the ordinary course of business unless written notice specifying such payment, credit, extension or agreement has been delivered to the Bank; (d) each copy of each invoice is a true and genuine copy of the original invoice sent to the Account Debtor named therein and accurately evidences the transaction from which the underlying Account arose and the date payment is due as stated on each such invoice, or computer based on the information set forth on each such invoice, is correct; (e) all chattel paper and all promissory notes, drafts, trade acceptances, and other instruments for the payment of money relating to or evidencing each Account, and each indorsement thereon, are true and genuine and in all respects what they purport to be, and are the valid and binding obligations of all parties thereto and the date or dates stated on such items as the date on which payment in whole or in part is due is correct; (f) all inventory described in each invoice has been delivered to the Account Debtor named in such invoice or placed for such delivery in the possession of a carrier not owned or controlled directly or indirectly by Borrower; (g) all evidence of the delivery or shipment of inventory is true and genuine; (h) all services to be performed by Borrower in connection with each Account has been performed by Borrower, and (i) all evidence of the performance of such services by Borrower is true and genuine.
Examples of Validity of Accounts in a sentence
A Warranty of Validity of Accounts, in form and substance satisfactory to the Lender (the “Warranty of Validity of Accounts”), executed by a Duly Authorized Officer.
Validity of Accounts...........................................................................
Validity of Accounts ...................................................................
Validity of Accounts.................................................
Lender and Borrowers hereby acknowledge and agree that the Guaranty of Validity of Accounts and Collateral executed by ▇▇▇▇▇▇ ▇.