Common use of Solvency of Customers Clause in Contracts

Solvency of Customers. Each Customer, to the best of each Obligor's knowledge, as of the date each Eligible Receivable is created, is and is expected to be solvent and able to pay all Eligible Receivables on which the Customer is obligated in full when due or with respect to such Customers of any Obligor who are not solvent such Obligor has set up on its books and in its financial records bad debt reserves adequate to cover such Receivables in accordance with GAAP.