Acceptance of Receivables; Advances. Bank is not obligated to finance any Receivable. Bank may approve any Account Debtor's credit before accepting any Receivable. When Bank accepts a Receivable, Bank will lend to Borrower an amount equal to the Advance Rate times the face amount of the Receivable (the "Advance"). Bank may, in its discretion, change the percentage of the Advance Rate. When Bank makes an Advance, the Receivable becomes a "Financed Receivable." All representations and warranties in Section 6 must be true as of the date of the Invoice Transmittal and of the Advance and no Event of Default exists or would occur as a result of the Advance. The Financed Receivable Balance outstanding at any time may not exceed the Facility Amount.