Receivables Sale Agreement (Genie AI)

The Receivables Sale Agreement (Genie AI) under USA law is a legal template that outlines the agreement between a seller (often a company or business) and a buyer (typically a financial institution) for the sale and transfer of receivables. Receivables refer to the outstanding invoices or money owed to the seller by its customers or clients.

This agreement template serves as a legally binding contract that sets out the terms and conditions for the sale transaction. It covers various essential aspects, such as the identification of the receivables being sold, the purchase price, the timing of the sale, any warranties or guarantees provided, and the rights and obligations of both parties involved.

Under this agreement, the seller agrees to sale and transfer ownership of the specified receivables to the buyer in exchange for an agreed-upon purchase price. The buyer, typically a financial institution or specialized funding entity, provides immediate cash to the seller, enabling them to optimize liquidity and manage cash flow. In essence, the seller is essentially converting their outstanding invoices into immediate cash, while the buyer assumes the responsibility of collecting payment from the debtors.

Given that this template is designed to operate under USA law, it ensures compliance with relevant legal and regulatory requirements specific to the jurisdiction. It may include provisions pertaining to the Uniform Commercial Code (UCC) or other applicable legislation governing the sale and assignment of receivables in the United States.

Moreover, this agreement may include provisions addressing confidentiality, dispute resolution mechanisms, default, and remedies available to both parties in case of breach or non-performance.

Overall, the Receivables Sale Agreement (Genie AI) under USA law provides a standardized legal framework that facilitates the sale and transfer of receivables between parties, thereby providing financial flexibility for the seller and investment opportunities for the buyer.