Solvency of Customers. Each Customer (other than Customers having Receivables not in excess of $250,000 in the aggregate at any time outstanding), to each Credit Party’s actual knowledge, as of the date each Receivable is created, is and will be solvent and able to pay all Receivables on which the Customer is obligated in full when due or with respect to such Customers of Credit Parties who are not, to any Credit Party’s actual knowledge, solvent, the applicable Borrower has set up on its books and in its financial records bad debt reserves adequate to cover such Receivables.
Appears in 3 contracts
Sources: Term Loan and Security Agreement (Direct Digital Holdings, Inc.), Sixth Amendment and Waiver to Term Loan and Security Agreement (Direct Digital Holdings, Inc.), Term Loan and Security Agreement (Direct Digital Holdings, Inc.)