Article 6 Reservation of ownership
a) The purchaser assumes title to the goods only upon full payment of the purchase price and all other obligations, including future obligations, accuring from his business relations with us. This also applies in cases in which payments are effected against specifically designated claims. In current account transactions, the reserved ownership serves as security against outstanding account balances. Rights of ownership are transferred to the purchaser no later than the date on which we no longer have justifiable claims against the purchaser.
b) As long as the purchaser fulfils his payment obligations to us in an acceptable manner, he shall be entitled to utilize and/or resell reserved-ownership goods in his normal course of business.
c) In the event that the purchaser fails to meet payment obligation to us after elapse of a specified grace period, we shall be entitled to demand return of reserved-ownership goods with extension of the grace period and without notification of cancellation of the contract. Our demand for return of goods implies cancellation of the contract only if we make a corresponding written declaration.
d) Processing or other utilization of reserved-ownership goods is effected on our behalf without obligation to us. We are to be regarded as the manufacturer as defined in Art. 950, German Civil Code (BGB), and acquire title to intermediate and final products equivalent to the proportion of the invoice value of our reserved-ownership goods to the invoice values of goods produced by others. Thus the purchaser holds reserved-ownership goods for us in trust and at no expense to us. The same applies to combinations or mixtures of reserved-ownership goods with goods produced by other as defined in Arts. 947, 948 German Civil Code (BGB).
e) The purchaser hereby assigns to us all claims against third parties accuring through resale of the reserved-ownership goods as security against all outstanding obligations to us. If the purchaser sells goods to which we have only partial ownership rights as set out under letter b) above, he similarly cedes claims against third parties to us in proportion to the relative value. If the purchaser utilizes reserved ownership goods under the provisions of a general goods and services contract or similar contract, he shall assign claims for goods/services under said contract to us in an amount equivalent to the invoice value of the utilized goods delivered by us.
f) The purchaser shall be entitled to collect payments for claims accruing from the resale or utilization of reserved-ownership goods in his normal course of business. Should we have specific reason to believe that the purchaser cannot or will not properly meet his obligations to us, the purchaser shall be required at our request to inform his purchasers of the assignment of claims to desist from collecting or otherwise disposing of said claims, to inform us immediately of the status of goods to which we still hold rights of ownership and to submit all documents required for recovery of assigned claims to us. Any attachment of reserved-ownership goods or assigned claims is to be reported to us immediately.
g) If the value of the security to which we have rightful claim exceeds the total amount of our claims against the purchaser by more than 10%, we shall be obligated to release security at the purchaser's request in a form to be selected by us.
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Preamble
