Floorplan Audits Sample Clauses

The Floorplan Audits clause establishes the right of a party, typically a lender or lessor, to inspect and verify the inventory or assets held by the other party under a floorplan financing arrangement. In practice, this means the lender can conduct periodic audits of the borrower's inventory to ensure that the financed goods are present and accounted for, and that records are accurate. This clause serves to protect the lender's interests by reducing the risk of fraud or mismanagement, ensuring that the collateral securing the financing remains available and properly documented.