Common use of Purchase of Accounts Clause in Contracts

Purchase of Accounts. Except as otherwise provided herein, we shall purchase CIT Risk Accounts from the SPV on each applicable Purchase Date, subject to and in accordance with Sections 7.2 and 9.1 below, for the gross amount of the respective invoices, less: trade and cash discounts allowable to, or taken by, your customers, credits, cash on account and allowances and all amounts paid, collected or otherwise recovered prior to our purchase in respect of the customer’s invoices (“Purchase Price”). Our purchase of those Accounts will be effective concurrently with the payment by us in immediately available funds directly to the Blocked Account of the Purchase Price and such payment shall be reflected on the Statement of Account (defined in Section 10 below) which we shall make available to you, which will also reflect all credits and discounts made available to your customers. No purchase or sale of any Accounts shall be effective hereunder prior to the payment of the Purchase Price. We hereby acknowledge and agree that we shall not take or claim any Lien on any Account (or collections thereof) unless and until we have purchased such Account pursuant to the Purchase Provisions and have made payment of the Purchase Price in immediately available funds to the Blocked Account.