# Account Receivable Agreement
**This Account Receivable Agreement** (the "Agreement") is made and entered into as of the ___ day of ______________, 20___, by and between:
**[Creditor's Name]**, a corporation organized under the laws of the State of [State Name], with its principal place of business at [Creditor's Address] (hereinafter referred to as the "Creditor"),
AND
**[Debtor's Name]**, a corporation organized under the laws of the State of [State Name], with its principal place of business at [Debtor's Address] (hereinafter referred to as the "Debtor").
**WHEREAS**, the Creditor has extended credit to the Debtor in the form of goods and/or services;
**WHEREAS**, the Debtor is obligated to pay the Creditor for such credit extended;
**WHEREAS**, the parties wish to define the terms and conditions under which the Debtor shall pay the Creditor an account receivable.
**NOW, THEREFORE**, in consideration of the mutual covenants herein contained, the parties hereto agree as follows:
## 1. Account Receivable
The Debtor acknowledges that as of the date of this Agreement, the amount owed to the Creditor is $__________ (the "Account Receivable").
## 2. Payment Terms
- The Debtor agrees to pay the Creditor the Account Receivable in full by no later than the ___ day of ______________, 20___.
- Payments shall be made in cash, certified check, money order, or electronic transfer to the Creditor’s designated account at [Bank Name], [Account Number].
- Late payments shall accrue interest at the rate of ___% per annum from the due date until paid in full.
## 3. Default
- If the Debtor fails to make any payment under this Agreement when due, the entire balance of the Account Receivable shall immediately become due and payable.
- In the event of default, the Creditor may pursue all legal remedies available under applicable law for the collection of the Account Receivable.
## 4. Representations and Warranties
The Debtor represents and warrants that:
- The Debtor is duly organized, validly existing, and in good standing under the laws of the State of [State Name].
- The execution, delivery, and performance of this Agreement have been duly authorized by all necessary corporate actions.
## 5. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [State Name].
## 6. Amendments
No amendment or modification of this Agreement shall be valid unless made in writing and signed by both parties.
## 7. Entire Agreement
This Agreement constitutes the entire understanding between the parties hereto pertaining to the subject matter hereof and supersedes all prior negotiations, agreements, and understandings, whether written or oral.
## 8. Notices
All notices required or permitted under this Agreement shall be in writing and shall be deemed effective upon personal delivery, or upon receipt if sent by registered or certified mail, return receipt requested, to the following addresses:
- **Creditor**: [Creditor's Address]
- **Debtor**: [Debtor's Address]
## IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
_________________________________
[Creditor's Name]
By: ___________________________
Title: __________________________
_________________________________
[Debtor's Name]
By: ___________________________
Title: __________________________
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### **Disclaimer**:
This document is a template and should be customized to suit the specific legal context and requirements. It is recommended to seek legal counsel before finalizing any contractual agreement.