Common use of Solvency of Customers Clause in Contracts

Solvency of Customers. Each Customer on a Receivable identified on a Borrowing Base Certificate as an Eligible Receivable, to the best of the applicable Borrower’s knowledge, as of the date each such Receivable is created, is and will be solvent and able to pay all such Receivables on which such Customer is obligated in full when due or, with respect to such Customers of the Borrowers who are not solvent, the applicable Borrower has set up on its books and in its financial records bad debt reserves adequate to cover such Receivables.