Common use of Changes in Inventory Clause in Contracts

Changes in Inventory. The Borrower shall notify the Bank immediately of any change in the location of the Inventory and of any material decrease (whether by loss, depreciation, damage or otherwise) in the value of the Inventory and the amount of such decrease. The Borrower shall pay to the Bank, immediately upon demand, (a) to be applied against the Inventory Revolving Loan, such amount as may be necessary to maintain the required Inventory Borrowing Base with respect to the outstanding Inventory Revolving Loan and (b) to be applied against any other loan, such amount as may be necessary, in the sole opinion of the Bank, to restore the Bank to an adequate level of security. The Borrower shall deliver to the Bank, at such times as the Bank may request, a statement in form satisfactory to the Bank showing (a) the Inventory available for sale, (b) the Inventory previously sold and delivered, sold and held for future delivery, used or consumed, (c) the description, value and location of the Inventory and (d) such other information as the Bank may deem necessary or desirable with respect to the Inventory.