Common use of Advances Under Note Clause in Contracts

Advances Under Note. Lender agrees that it shall make advances under the LOC Note (“each an “Advance”) to Debtor up to $1,000,000 in the aggregate as requested by Debtor from time to time, subject and pursuant to the terms of this Agreement and the LOC Note. Debtor acknowledges that prior to Secured Party’s obligation to advance funds pursuant to the Loan Documents, Debtor shall: (a) present to Secured Party a detailed purchase order including the cost, quantity, and description of each ATM or DVD rental machine being purchased; (b) present a list of installation locations for each machine being purchased; (c) if used machines are being purchased, present an appraisal, dated no more than sixty (60) days prior to the date of request for such advance, of the fair market value of the used machines; (d) execute such documents as are required by Secured Party to perfect a security interest in accordance with Secured Party’s underwriting guidelines, and such other matters as are requested by Secured Party; (e) present to Secured Party a list of serial numbers and model numbers for each machine being purchased; and (f) provide Secured Party with proof that all machines being purchased are free of all liens. Debtor acknowledges that the amounts advanced as to all purchases hereunder shall not exceed $1,000,000.00 and as to any individual machine purchased hereunder, advances shall not exceed: (i) seventy-five percent (75%) of the purchase price of new machines; and/or (ii) seventy-five percent (75%) of the appraised fair market value of such machine not to exceed the purchase price of such machines.