Common use of Collateral Audit Clause in Contracts

Collateral Audit. from time to time at the request of the Agent (but, so long as no Default is continuing, no more than once in any fiscal year), a report as of the end of any fiscal quarter, in form and substance satisfactory to the Required Banks, of an independent collateral auditor satisfactory to the Required Banks (which may be, or be affiliated with, any of the Banks): (i) with respect to the Receivables and Inventory components included in the Borrowing Base as at the end of such fiscal quarter which report shall indicate that, based upon a review by such auditors of the Receivables (including verification with respect to the amount, aging, identity and credit of the respective account debtors and the billing practices of the Company) and Inventory (including verification as to the value, location and respective types), the information set forth in the Borrowing Base Certificate delivered by the Company as at the end of such fiscal quarter is accurate and complete in all material respects, (ii) with respect to the insurance policy or policies covering any of the Receivables or other Collateral, and (iii) with respect to the agreements entered into by the Company with its customers and its suppliers; provided, that notwithstanding the foregoing, the first such report shall be dated on or around the date which is 180 days after the date hereof and delivered to the Agent within 45 days after such date.

Collateral Audit. from time to time at the request of the Agent (but, so long as no Default is continuing, no more than once in any fiscal year), a report as of the end of any fiscal quarter, in form and substance satisfactory to the Required Banks, of an independent collateral auditor satisfactory to the Required Banks (which may be, or be affiliated with, any one of the Banks): (i) with respect to the Receivables and Inventory components included in the Borrowing Base as at the end of such fiscal quarter which report shall indicate that, based upon a review by such auditors of the Receivables (including verification with respect to the amount, aging, identity and credit of the respective account debtors and the billing practices of the Company) and Inventory (including verification as to the value, location and respective types), the information set forth in the Borrowing Base Certificate delivered by the Company as at the end of such fiscal quarter is accurate and complete in all material respects, (ii) with respect to the insurance policy or policies covering any of the Receivables or other Collateral, and (iii) with respect to the agreements entered into by the Company with its customers and its suppliers; provided, that notwithstanding the foregoing, the first such report shall be dated on or around the date which is 180 days after the date hereof and delivered to the Agent within 45 days after such date.;