Common use of Extended Reservation of Title Clause in Contracts

Extended Reservation of Title. a) The customer assigns all claims arising from the resale of products on which the reservation of title rests to ▇▇▇▇▇▇▇▇▇ meteo GmbH in advance. With regard to co-owned merchandise, such assignment is restricted to the respective proportion of value as set out above in clause 3 b). b) Should the value of the product on which the reservation of title rests increase by virtue of processing or installation, the advance assignment is restricted to 110 % of the net invoice value as stated by ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ GmbH. However, the customer may not enforce his share in the assigned claim to the disadvantage of ▇▇▇▇▇▇▇▇▇ meteo GmbH. c) In the course of ordinary business, the customer remains entitled to collect the assigned claims in his own name. ▇▇▇▇▇▇▇▇▇ meteo GmbH may at any time and without giving reason revoke this authority to collect the assigned claims and may inform the customer’s subcontractor about the assignment. In case the authority to collect the assigned claims is revoked, ▇▇▇▇▇▇▇▇▇ meteo GmbH may demand that the customer name his recipients in a manner which enables ▇▇▇▇▇▇▇▇▇ meteo GmbH to notify the garnishee of the assignment d) In case a customer, prior to the assignment to ▇▇▇▇▇▇▇▇▇ meteo GmbH, has assigned his claims against a subcontractor arising from the resale of products on which the retention of title rest to third parties (in particular to a bank as a credit grantor), such disposition is deemed not to have taken place in the ordinary course of business. e) In case the customer intends to assign the claims arising from the resale of prod- ucts under an extended reservation of title to a third party bearing the delcredere risk (genuine factoring), the validity of such transfer depends on the advance written ap- proval of ▇▇▇▇▇▇▇▇▇ meteo GmbH. Otherwise, such disposal is deemed not to have taken place in the ordinary course of business. The same applies in case the claims are assigned to a third party, which does not, or only to a limited extent, bear the delcredere risk (fake factoring). f) All claims which arise from the resale of (co-owned) products under reservation of title and have been assigned by the customer to ▇▇▇▇▇▇▇▇▇ meteo GmbH in ad- ▇▇▇▇▇ serve as security not only for the purchase price for the respective product resold, but also for all further claims mentioned in clauses 1 to 3 above.