Common use of Purchase of Accounts Receivable Clause in Contracts

Purchase of Accounts Receivable. NJNG shall purchase TPS’ accounts receivable resulting from TPS’ sale of natural gas to Transportation Customers. NJNG’s purchase of accounts receivable will be limited to amounts due to TPS by Transportation Customers upon the provision of natural gas commodity service by TPS. NJNG's purchase, if any, of a TPS's accounts receivable shall be as set forth in the Billing and Payment for BCS section of this agreement. Notwithstanding anything contained herein, NJNG reserves the right to deduct from any sums due TPS hereunder any amounts owed by TPS to NJNG, including amounts for accounts not subject to Billing Option 1 Service, which amounts are past due but have not yet been paid, or to apply TPS’s deposit or letter of credit to such past due amounts.