Common use of Consignment Transactions Clause in Contracts

Consignment Transactions. Except pursuant to this Credit Agreement, the Borrower will not, nor will the Borrower permit or suffer any of its Subsidiaries to, enter into any consignment transactions as the consignee or buyer thereunder, including consignments of Precious Metal, except for (a) deliveries of diamonds to the Borrower on "approval" in the ordinary course of business and (b) deliveries by Specified Refiners of refined Precious Metal to the Borrower as credits against amounts of unrefined Precious Metal sent by the Borrower to such Specified Refiners for refining in the ordinary course of business to the extent such delivery of Precious Metal to the Borrower is deemed to be done on a consignment basis.