5.1 KLOTZ retains the title to the merchandise until all payments from the business relationship with the customer have been received (reserved goods). Claims from the business relationship include interest, accessory claims, costs of any legal action and costs of an intervention over seizure of the merchandise by third parties. Cheques and bills of exchange are only valid methods of payment once irrevocably redeemed.
5.2 The customer undertakes to treat the reserved goods with care and to inform KLOTZ immediately of any access by third parties to the reserved goods in cases such as seizure, as well as of any damage to or destruction of the reserved goods. The customer must inform us immediately of any change of ownership of the reserved goods. The customer is not entitled to seize goods subject to retention of title or to assign them as collateral.
5.3 The customer is entitled to sell the merchandise within its orderly course of business. In the case of resale of the merchandise, the customer hereby assigns its claims against its customers from the sale of the merchandise to KLOTZ in advance. KLOTZ accepts the assignment. The assignment may also include a claim for payment of an account balance from an agreed current account. The customer is entitled to collect the assigned claim on its own behalf until such right is revoked by KLOTZ.
5.4 At KLOTZ’ request, the customer undertakes to provide KLOTZ with the names of its customers against which the customer has claims arising from the sale of the merchandise, including the amounts owed by said customers, and to provide KLOTZ with access to its books and invoices. The customer will inform KLOTZ immediately of any seizure of the merchandise or other interventions by third parties.
5.5 Any processing or modification of the merchandise by the customer is always undertaken for KLOTZ. Where the merchandise is processed or combined with other goods which are not owned by KLOTZ, KLOTZ will automatically acquire co-ownership of the new item equivalent to the ratio of the value of the merchandise (the total as invoiced including VAT) to the value of the other processed goods at the time of processing. The same applies to combination of the merchandise with other goods which are not owned by KLOTZ.
5.6 If the feasible value of the collateral reserved for KLOTZ exceeds KLOTZ’ claims by more than 20%, at the customer’s request KLOTZ will release a corresponding part of the collateral at its own discretion.
5.7 If retention of title in a foreign country – in cases where the law of that country applies – is invalid or requires other actions such as registration in addition to the contractual agreement, the customer undertakes to participate at its own expense in all actions, and specifically to submit all required statements, aimed at effecting the retention of title or at procuring collateral for KLOTZ that is equivalent to the retention of title.