If a debtor pays after 90 days of default, refusing that payment is critical. Accepting it signals you'll tolerate ongoing breaches and effectively rewrites your contract terms. Enforce the rules you set or lose them.
Today in The Deal Room. Oh, can't do that. Why can't we take payment on something now that it's been 90 days outside of default? Because if we do, we reset the terms of the conditions of the note stating that you are in default, you owe us $240,000. So if we accept these funds, we are basically saying, oh yeah, it's okay to take advantage of us. Yeah, you can go ahead and screw up and we are okay with it. And so we have to at every turn turn back to them and say, we're not okay with this. We're not accepting this. Give us all our money now. Your contract is only as good as the provisions let you enforce. Correct. If I, if I, if I bend in any way to that contract, that's the new rules to the contract, right? Just like in, in, in any game that you play, when you change the rules, that's what happens.
