Common use of Solvency of Customers Clause in Contracts

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

Solvency of Customers. Each Eligible Receivables and Eligible --------------------- Government Receivables included in the Formula Amount and, to the best of Borrower’s 's or any of its Subsidiaries’ ' knowledge, as of the date each such Receivable is created, is and will be solvent and able to pay all such Receivables on which the Customer is obligated in full when due or with respect to such Customers of Borrower or Subsidiary who are not solvent Borrower or the applicable Subsidiary has set up on its books and in its financial records bad debt reserves adequate to cover such Receivables.