Common use of Back Charges Clause in Contracts

Back Charges. (a) If the Tenant owes rent or other charges owed to Management in arrears, the Tenant shall pay in full these back charges within 90 days of receiving notice of the back charge. In the event the Tenant timely reports to Management a change in income and a back charge results from an increase in income, payment for any back charges are not due until 90 days from the date of a completed reexamination or interim rent adjustment. Failure to make payment in full of back charges will result in termination of the Rental Agreement. (b) Management may, in its discretion, elect to negotiate a reasonable payment arrangement not to exceed six (6) months with the Tenant to ensure payment in full of the back charge. If Management does not agree to a payment arrangement, the Tenant is responsible for the full balance of the back charges within 90 days as required under subsection (a) of this paragraph.