Eligible Notes Clause Samples
The 'Eligible Notes' clause defines which notes or debt instruments qualify for certain rights, benefits, or participation under the agreement. Typically, this clause outlines specific criteria such as issuance date, compliance with regulatory requirements, or minimum denomination that notes must meet to be considered eligible. By clearly specifying which notes are included, the clause ensures that only qualifying instruments are subject to the agreement’s terms, thereby preventing disputes and maintaining clarity for all parties involved.
Eligible Notes. An "Eligible Note" is a Note which:
Eligible Notes. Each Eligible Note is genuine, complete and, in all other respects, what it purports to be, and is not otherwise ineligible under the standards set forth in this Agreement. The Eligible Notes that are included in the initial Borrowing Base are listed on Schedule 5.5(c).
Eligible Notes. Each Financed Note Receivable and Upgraded Note Receivable constitutes an Eligible Note Receivable, and Borrower is not aware of any facts or information which would cause such Financed Note Receivable not to be an Eligible Note Receivable hereunder.
Eligible Notes. An “Eligible Note” is a Note which:
(a) is not in default;
(b) conforms to the documentation requirements set forth in Section 1.4;
(c) is for a term not to exceed twenty-four (24) months;
(d) provides for full straight line amortization of the principal balance thereof (or some other amortization of principal acceptable to TFC); and
(e) is from a Dealer with which TFC has not had a prior unsatisfactory relationship. In order for TFC to make a determination as to the eligibility of a Note, Selmer shall submit a list of Dealers to TFC and update such list on a regular basis. In addition, if TFC’s purchase of a Note would result in the aggregate amount of outstanding principal under all Notes purchased by TFC with respect to the subject Dealer exceeding $500,000.00, such Note shall not be an “Eligible Note” unless TFC determines that the creditworthiness of such Dealer is acceptable.
Eligible Notes. With respect to each note that Borrower proposes become an Eligible Note and with respect to each Related Document:
(a) The information in each Note Schedule, together with any documentation supporting such information, is true and correct.
(b) There exists only one original of such note, and the original and all of the other original or certified documents described in Section 1.11 have been delivered or will be delivered to Lender before Lender makes any advances with respect to that note.
(c) Immediately prior to delivery of the note and the related endorsement(s) to Lender, the assigning Borrower held good and indefeasible title to, and was the sole owner of each such note, subject to no liens, charges, mortgages, encumbrances or rights of others and immediately upon delivery of the note to Lender, Lender will have a first priority security interest in such note, subject to no other liens, charges, mortgages, encumbrances or rights of others.
(d) The note and Related Documents delivered to Lender are true, correct, and complete original counterparts of all instruments and documents evidencing or in any way relating to that note and the related indebtedness referred to therein.
(e) Borrowers have caused all copies of any note retained by Borrowers to be identified with an appropriate legend clearly disclosing the fact that Lender has possession of and a security interest in such note and Related Documents.
Eligible Notes. Each Eligible Note is genuine, complete and, in all other respects, what it purports to be, and is not otherwise ineligible under the standards set forth in this Agreement.