Factored Accounts. The following new Section 2.24 is added to the Credit Agreement immediately after Section 2.23:
Factored Accounts. The Borrower desires to sell certain Accounts owed by certain foreign account debtors, except Accounts included in the Borrowing Base for which a Revolving Advance has been or may be made (the "Factored Accounts"). Upon receipt of evidence satisfactory to the Agent that the Borrower has found a Person, reasonably acceptable to the Agent and the Lenders, that will purchase the Factored Accounts on a non-recourse basis (except for Factored Accounts that are outstanding for more than 90 days after the invoice date) and without requiring the grant of a security interest in any Collateral, the Agent shall release its Security Interest in the Factored Accounts to the extent necessary to permit such purchases."
Factored Accounts. 5.1.1 The Agent shall pay to the Client the purchase price in respect of all accounts purchased by it as prescribed in paragraph 6.3 below, provided that any such account is accepted by the Agent as provided for in terms of paragraph 5, net of all accounts which are unpaid as provided for in terms of paragraph 3.10 above.
Factored Accounts. (a) Sell, assign, factor or otherwise transfer any Accounts other than those that are owing by Borrower’s franchisees listed on Schedule A to the CIT Factoring Agreement as in effect on the Second Amendment Date and that have been designated as “Factor Risk Accounts” under the CIT Factoring Agreement; provided, however, that Borrower may factor additional Accounts with CIT under the CIT Factoring Agreement so long as no later than the 15th day of each calendar month, Borrower provides the Agent with a listing of any additional franchisees whose Accounts Borrower has begun factoring under the CIT Factoring Agreement during the preceding calendar month. In no event may Borrower sell, assign, factor or otherwise transfer any Accounts owing from a franchisee that is not designated as a “Credit Line Customer” under the CIT Factoring Agreement.
Factored Accounts. Accounts owed to a Borrower which are transferred or assigned to a factor pursuant to a factoring agreement. FATCA: Sections 1471 through 1474 of the Code (including any amended or successor version if substantively comparable and not materially more onerous to comply with), any agreement entered into pursuant to Section 1471(b)(1) of the Code, and any intergovernmental agreement (and related fiscal or regulatory legislation, or related official rules or practices) implementing the foregoing. Federal Funds Rate: for any day, the per annum rate calculated by FRBNY based on such day’s federal funds transactions by depository institutions (as determined in such manner as FRBNY shall set forth on its public website from time to time) and published on the next Business Day by FRBNY as the federal funds effective rate; provided, that in no event shall the Federal Funds Rate be less than zero.
Factored Accounts. Cause all payments on Factored Accounts to be paid directly to the applicable factor and ensure such payments are not directed to a Deposit Account of an Obligor or its Subsidiaries.
