{"component": "clause", "props": {"groups": [{"size": 1, "samples": [{"hash": "gR8ZVEVRlNl", "uri": "/contracts/gR8ZVEVRlNl#inventory-collateral", "label": "Loan Agreement (Kewaunee Scientific Corp /De/)", "score": 35.8336755647, "published": true}], "snippet": "At any time, permit inventory Collateral in an aggregate amount in excess of $1,000,000 to be held at locations not owned or leased by a Loan Party.", "snippet_links": [{"key": "at-any-time", "type": "clause", "offset": [0, 11]}, {"key": "aggregate-amount", "type": "definition", "offset": [47, 63]}, {"key": "loan-party", "type": "definition", "offset": [137, 147]}], "hash": "f57239f6bbfa9215a680d7ea38a418c3", "id": 7}, {"size": 1, "samples": [{"hash": "jMZs78Y6SCl", "uri": "/contracts/jMZs78Y6SCl#inventory-collateral", "label": "Credit Agreement (Swisher Hygiene Inc.)", "score": 21.7378507871, "published": true}], "snippet": "1. Total Raw Material Inventory of Borrower and Subsidiary Guarantors (B1)\n2. Less: Ineligible Raw Material Inventory (pursuant to definition of \u201cEligible Inventory\u201d in Credit Agreement)\na. Does not or has ceased to create a valid and perfected first priority security interest and lien in favor of Administrative Agent\nb. Located at a location other than locations specified on Annex B to the Security Agreement\nc. Not in good saleable or usable condition in the normal course of business\nd. On consignment from or subject to any repurchase agreement from any supplier\ne. Repossessed or slow-moving goods\nf. Subject to a negotiable document of title\ng. Subject to any license or other agreement that limits or restricts the right to sell or dispose of such Inventory\nh. Constitutes packaging materials, supplies or promotional materials\ni. Not located within the U.S.\nj. Other ineligible Inventory as determined by the Administrative Agent Less: Ineligible Raw Material Inventory (pursuant to definition of \u201cEligible Inventory\u201d in Credit Agreement) \u2014 (B2)\n3. Eligible Raw Material Inventory (B1 - B2) $ \u2014 (B3) 5. Available Raw Material Inventory (B3 * B4) $ \u2014 (B5)", "snippet_links": [{"key": "subsidiary-guarantors", "type": "definition", "offset": [48, 69]}, {"key": "pursuant-to", "type": "definition", "offset": [119, 130]}, {"key": "definition-of", "type": "clause", "offset": [131, 144]}, {"key": "credit-agreement", "type": "clause", "offset": [169, 185]}, {"key": "security-interest-and-lien", "type": "clause", "offset": [260, 286]}, {"key": "in-favor-of", "type": "clause", "offset": [287, 298]}, {"key": "annex-b", "type": "definition", "offset": [379, 386]}, {"key": "the-security-agreement", "type": "clause", "offset": [390, 412]}, {"key": "normal-course-of-business", "type": "clause", "offset": [464, 489]}, {"key": "on-consignment", "type": "definition", "offset": [493, 507]}, {"key": "subject-to", "type": "definition", "offset": [516, 526]}, {"key": "repurchase-agreement", "type": "clause", "offset": [531, 551]}, {"key": "document-of-title", "type": "clause", "offset": [633, 650]}, {"key": "other-agreement", "type": "clause", "offset": [680, 695]}, {"key": "right-to-sell", "type": "clause", "offset": [725, 738]}, {"key": "dispose-of", "type": "definition", "offset": [742, 752]}, {"key": "packaging-materials", "type": "clause", "offset": [783, 802]}, {"key": "promotional-materials", "type": "clause", "offset": [816, 837]}, {"key": "the-us", "type": "clause", "offset": [860, 867]}, {"key": "ineligible-inventory", "type": "definition", "offset": [878, 898]}, {"key": "the-administrative-agent", "type": "clause", "offset": [916, 940]}, {"key": "eligible-raw-material-inventory", "type": "definition", "offset": [1060, 1091]}], "hash": "8125426bbdd929ecf75a43486a7c8bfb", "id": 6}, {"size": 1, "samples": [{"hash": "cVCGTSXmxcN", "uri": "/contracts/cVCGTSXmxcN#inventory-collateral", "label": "Credit Agreement and Pledge and Security Agreement (Swisher Hygiene Inc.)", "score": 23.674880219, "published": true}], "snippet": "1. Total Raw Material Inventory of Borrower and Subsidiary Guarantors (B1)\n2. Less: Ineligible Raw Material Inventory (pursuant to definition of \u201cEligible Inventory\u201d in Credit Agreement)\na. Does not or has ceased to create a valid and perfected first priority security interest and lien in favor of Administrative Agent\nb. Located at a location other than locations specified on Annex B to the Secuirty Agreement\nc. Not in good saleable or usable condition in the normal course of business\nd. On consignment from or subject to any repurchase agreement from any supplier\ne. Repossessed or slow-moving goods\nf. Subject to a negotiable document of title\ng. Subject to any license or other agreement that limits or restricts the right to sell or dispose of such Inventory\nh. Constitutes packaging materials, supplies or promotional materials\ni. Not located within the U.S.\nj. Located in a public warehouse or in possession of a bailee and no warehouse or bailee agreement has been entered into\nk. Located at a leased location and no landlord agreement has been entered into\nl. Other ineligible Inventory as determined by the Administrative Agent Less: Ineligible Raw Material Inventory (pursuant to definition of \u201cEligible Inventory\u201d in Credit Agreement) \u2014 (B2)\n3. Eligible Raw Material Inventory (B1 - B2) $ \u2014 (B3)\n4. Raw Material Inventory Advance Rate 30.0 %(B4)\n5. Available Raw Material Inventory (B3 * B4) $ \u2014 (B5)\n6. Total Finished Goods Inventory of Borrower and Subisidiary Guarantors (B6)\n7. Less: Ineligible Finished Goods Inventory (pursuant to definition of \u201cEligible Inventory\u201d in Credit Agreement)\na. Does not or has ceased to create a valid and perfected first priority security interest and lien in favor of Administrative Agent\nb. Located at a location other than locations specified on Annex B to the Secuirty Agreement\nc. Not in good saleable or usable condition in the normal course of business\nd. On consignment from or subject to any repurchase agreement from any supplier\ne. Repossessed or slow-moving goods\nf. Subject to a negotiabele document of title\ng. Subject to any license or other agreement that limits or restricts the right to sell or dispose of such Inventory\nh. Constitutes packaging materials, supplies or promotional materials\ni. Not located within the U.S.\nj. Located in a public warehouse or in possession of a bailee and no warehouse or bailee agreement has been entered into\nk. Located at a leased location and no landlord agreement has been entered into\nl. Other ineligible Inventory as determined by the Administrative Agent Less: Ineligible Finished Goods Inventory (pursuant to definition of \u201cEligible Inventory\u201d in Credit Agreement) \u2014 (B7)\n8. Eligible Finished Goods Inventory (B6 - B7) $ \u2014 (B8)\n9. Finished Goods Inventory Advance Rate 50.0 %(B9)\n10. Available Finished Goods Inventory (B8 * B9) $ \u2014 (B10)\n11. Total Inventory (prior to cap) (B5 + B10) $ \u2014 (B11)\n12. Inventory Cap (lesser of $7.0MM or 50% of margined A/R availability) (B12)\n13. Available Inventory Collateral (Lesser of B11 or B12) $ \u2014 (B13)", "snippet_links": [{"key": "subsidiary-guarantors", "type": "definition", "offset": [48, 69]}, {"key": "pursuant-to", "type": "definition", "offset": [119, 130]}, {"key": "definition-of", "type": "clause", "offset": [131, 144]}, {"key": "credit-agreement", "type": "clause", "offset": [169, 185]}, {"key": "security-interest-and-lien", "type": "clause", "offset": [260, 286]}, {"key": "in-favor-of", "type": "clause", "offset": [287, 298]}, {"key": "annex-b", "type": "definition", "offset": [379, 386]}, {"key": "normal-course-of-business", "type": "clause", "offset": [464, 489]}, {"key": "on-consignment", "type": "definition", "offset": [493, 507]}, {"key": "subject-to", "type": "definition", "offset": [516, 526]}, {"key": "repurchase-agreement", "type": "clause", "offset": [531, 551]}, {"key": "document-of-title", "type": "clause", "offset": [633, 650]}, {"key": "other-agreement", "type": "clause", "offset": [680, 695]}, {"key": "right-to-sell", "type": "clause", "offset": [725, 738]}, {"key": "dispose-of", "type": "definition", "offset": [742, 752]}, {"key": "packaging-materials", "type": "clause", "offset": [783, 802]}, {"key": "promotional-materials", "type": "clause", "offset": [816, 837]}, {"key": "the-us", "type": "clause", "offset": [860, 867]}, {"key": "located-in", "type": "definition", "offset": [872, 882]}, {"key": "public-warehouse", "type": "definition", "offset": [885, 901]}, {"key": "possession-of", "type": "clause", "offset": [908, 921]}, {"key": "bailee-agreement", "type": "clause", "offset": [951, 967]}, {"key": "entered-into", "type": "clause", "offset": [977, 989]}, {"key": "leased-location", "type": "definition", "offset": [1006, 1021]}, {"key": "landlord-agreement", "type": "clause", "offset": [1029, 1047]}, {"key": "ineligible-inventory", "type": "definition", "offset": [1079, 1099]}, {"key": "the-administrative-agent", "type": "clause", "offset": [1117, 1141]}, {"key": "eligible-raw-material-inventory", "type": "definition", "offset": [1261, 1292]}, {"key": "raw-material-inventory-advance-rate", "type": "definition", "offset": [1315, 1350]}, {"key": "eligible-finished-goods-inventory", "type": "definition", "offset": [2686, 2719]}, {"key": "finished-goods-inventory-advance-rate", "type": "definition", "offset": [2742, 2779]}, {"key": "total-inventory", "type": "definition", "offset": [2854, 2869]}, {"key": "prior-to", "type": "definition", "offset": [2871, 2879]}, {"key": "inventory-cap", "type": "definition", "offset": [2910, 2923]}, {"key": "lesser-of", "type": "definition", "offset": [2925, 2934]}, {"key": "available-inventory", "type": "definition", "offset": [2989, 3008]}], "hash": "a11fc35e058aece60d3676bc97b5df7f", "id": 4}, {"size": 1, "samples": [{"hash": "h25iibVJ5OV", "uri": "/contracts/h25iibVJ5OV#inventory-collateral", "label": "Eighth Amendment and Waiver (AbitibiBowater Inc.)", "score": 21.0, "published": true}], "snippet": "Raw Materials Work-in-Process US Finished Goods \u2587\u2587\u2587\u2587\u2587 Stores* Total Inventory", "snippet_links": [{"key": "raw-materials", "type": "definition", "offset": [0, 13]}, {"key": "finished-goods", "type": "clause", "offset": [33, 47]}, {"key": "total-inventory", "type": "definition", "offset": [62, 77]}], "hash": "8960c9c40f04bd440f5293d88e60eaa1", "id": 3}, {"size": 1, "samples": [{"hash": "lQBmkOyva3a", "uri": "/contracts/lQBmkOyva3a#inventory-collateral", "label": "Intercreditor Agreement (Ugly Duckling Corp)", "score": 18.0, "published": true}], "snippet": "Receivable Lender's liens and security interests in the Inventory Collateral, whether now existing or hereafter arising pursuant to operation of law or otherwise, shall be subordinated to Inventory Lender's liens and security interests in the Inventory Collateral, and each holder of the Receivables Obligations, by acceptance of all or any portion of the Receivables Obligations, whether upon original issuance, transfer, assignment or exchange, agrees to be bound by the provisions of this Agreement.", "snippet_links": [{"key": "liens-and-security-interests", "type": "clause", "offset": [20, 48]}, {"key": "the-inventory", "type": "clause", "offset": [52, 65]}, {"key": "pursuant-to", "type": "definition", "offset": [120, 131]}, {"key": "operation-of-law", "type": "definition", "offset": [132, 148]}, {"key": "inventory-lender", "type": "definition", "offset": [188, 204]}, {"key": "the-receivables", "type": "clause", "offset": [284, 299]}, {"key": "acceptance-of", "type": "definition", "offset": [316, 329]}, {"key": "original-issuance", "type": "definition", "offset": [394, 411]}, {"key": "assignment-or", "type": "clause", "offset": [423, 436]}, {"key": "agrees-to", "type": "clause", "offset": [447, 456]}, {"key": "provisions-of-this-agreement", "type": "clause", "offset": [473, 501]}], "hash": "9f06b05de583ddb5484b814925ce990e", "id": 9}, {"size": 1, "samples": [{"hash": "aCDLjD8XIIy", "uri": "/contracts/aCDLjD8XIIy#inventory-collateral", "label": "Inventory Loan and Security Agreement (Diamond Resorts Corp)", "score": 22.6180698152, "published": true}], "snippet": "(a) Borrower has good and marketable title to all of the Inventory Collateral subject only to Permitted Exceptions described on Schedule 12.7.\n(b) Borrower shall maintain good and marketable title to the Inventory Collateral subject to Permitted Exceptions and shall defend such title against all claims of other Persons except Lender.\n(c) Borrower shall not transfer, sell, assign, or enter into any options to purchase, installment sales contracts or contracts for deed with respect to all or any portion of the Inventory Collateral except to DRC or a DRC Affiliate, subject to Lender\u2019s Mortgage and Liens. Borrower shall not take any action (or permit or consent to the taking of any action) which might impair the value of the Inventory Collateral or any of the rights of Lender in the Inventory Collateral.", "snippet_links": [{"key": "title-to-all", "type": "clause", "offset": [37, 49]}, {"key": "the-inventory", "type": "clause", "offset": [53, 66]}, {"key": "subject-only", "type": "definition", "offset": [78, 90]}, {"key": "permitted-exceptions", "type": "clause", "offset": [94, 114]}, {"key": "on-schedule", "type": "definition", "offset": [125, 136]}, {"key": "borrower-shall", "type": "clause", "offset": [147, 161]}, {"key": "title-to-the", "type": "clause", "offset": [191, 203]}, {"key": "subject-to", "type": "definition", "offset": [225, 235]}, {"key": "claims-of-other-persons", "type": "clause", "offset": [297, 320]}, {"key": "options-to-purchase", "type": "clause", "offset": [401, 420]}, {"key": "sales-contracts", "type": "definition", "offset": [434, 449]}, {"key": "contracts-for-deed", "type": "clause", "offset": [453, 471]}, {"key": "with-respect-to", "type": "clause", "offset": [472, 487]}, {"key": "to-lender", "type": "definition", "offset": [577, 586]}, {"key": "any-action", "type": "definition", "offset": [633, 643]}, {"key": "consent-to", "type": "clause", "offset": [658, 668]}, {"key": "the-value", "type": "clause", "offset": [714, 723]}, {"key": "rights-of-lender", "type": "clause", "offset": [766, 782]}], "hash": "691947521dddaf0f8a262c2b2eb716ef", "id": 5}, {"size": 2, "samples": [{"hash": "gUayUSIeL4B", "uri": "/contracts/gUayUSIeL4B#inventory-collateral", "label": "Credit and Security Agreement (Franks Nursery & Crafts Inc)", "score": 19.0, "published": true}, {"hash": "5bZjwTWnL35", "uri": "/contracts/5bZjwTWnL35#inventory-collateral", "label": "Credit and Security Agreement (Franks Nursery & Crafts Inc)", "score": 19.0, "published": true}], "snippet": "Sale and Leaseback. Enter into any arrangement with any Person or Persons, whereby in contemporaneous transactions Borrower sells essentially all of its right, title and interest in an asset and, in connection therewith, acquires, leases or licenses back the right to use such asset, except to the extent the asset subject to such sale and leaseback arrangement was sold by Borrower in a transaction permitted by Section 5.3 hereof.", "snippet_links": [{"key": "sale-and-leaseback", "type": "definition", "offset": [0, 18]}, {"key": "person-or-persons", "type": "clause", "offset": [56, 73]}, {"key": "contemporaneous-transactions", "type": "clause", "offset": [86, 114]}, {"key": "title-and-interest", "type": "clause", "offset": [160, 178]}, {"key": "in-connection", "type": "definition", "offset": [196, 209]}, {"key": "leases-or-licenses", "type": "clause", "offset": [231, 249]}, {"key": "right-to-use", "type": "clause", "offset": [259, 271]}, {"key": "except-to-the-extent", "type": "clause", "offset": [284, 304]}, {"key": "the-asset", "type": "clause", "offset": [305, 314]}, {"key": "subject-to", "type": "definition", "offset": [315, 325]}, {"key": "by-borrower", "type": "clause", "offset": [371, 382]}, {"key": "section-53", "type": "clause", "offset": [413, 424]}], "hash": "02d3634515583f0e78e691b6b8c79c42", "id": 1}, {"size": 2, "samples": [{"hash": "lQBmkOyva3a", "uri": "/contracts/lQBmkOyva3a#inventory-collateral", "label": "Intercreditor Agreement (Ugly Duckling Corp)", "score": 18.0, "published": true}], "snippet": "If any Proceeds or payment in respect of the Inventory Collateral is received by Inventory Lender after the Inventory Lender Payoff, Inventory Lender shall receive and hold the same for the benefit of Receivable Lender and shall forthwith deliver the same to Receivable Lender in precisely the form received (except for the endorsement or assignment of Inventory Lender, without recourse, where necessary), for application on the Receivable Obligations, due or not due, and, until so delivered, the same shall be held by Inventory Lender as the property of Receivable Lender. In event of the failure of Inventory Lender to make any such endorsement or assignment to Receivable Lender, Receivable Lender, or any of its officers or employees, is hereby irrevocably authorized to make the same.", "snippet_links": [{"key": "in-respect-of", "type": "clause", "offset": [27, 40]}, {"key": "the-inventory", "type": "clause", "offset": [41, 54]}, {"key": "received-by", "type": "definition", "offset": [69, 80]}, {"key": "inventory-lender", "type": "definition", "offset": [81, 97]}, {"key": "for-the-benefit-of", "type": "definition", "offset": [182, 200]}, {"key": "form-received", "type": "clause", "offset": [294, 307]}, {"key": "assignment-of", "type": "definition", "offset": [339, 352]}, {"key": "without-recourse", "type": "clause", "offset": [371, 387]}, {"key": "where-necessary", "type": "definition", "offset": [389, 404]}, {"key": "receivable-obligations", "type": "clause", "offset": [430, 452]}, {"key": "the-property", "type": "clause", "offset": [541, 553]}, {"key": "event-of", "type": "definition", "offset": [579, 587]}, {"key": "assignment-to", "type": "clause", "offset": [652, 665]}, {"key": "officers-or-employees", "type": "clause", "offset": [718, 739]}], "hash": "32991654a640dcc2c99cf5205565b1e5", "id": 2}, {"size": 1, "samples": [{"hash": "aCDLjD8XIIy", "uri": "/contracts/aCDLjD8XIIy#inventory-collateral", "label": "Inventory Loan and Security Agreement (Diamond Resorts Corp)", "score": 22.6180698152, "published": true}], "snippet": "Collectively, all now owned or hereafter existing or acquired right, title and interest of Borrower in and to all of the following:", "snippet_links": [{"key": "title-and-interest", "type": "clause", "offset": [69, 87]}], "hash": "b77514f816b86ea79dbcc8ff82a0271b", "id": 8}, {"size": 1, "samples": [{"hash": "ho9jM0EEmrr", "uri": "/contracts/ho9jM0EEmrr#inventory-collateral", "label": "Inventory Loan and Security Agreement (Diamond Resorts Corp)", "score": 23.6173853525, "published": true}], "snippet": "(a) At the time the related Advance is deemed made, Borrower will, to its knowledge, have good and marketable title to all of the Inventory Collateral subject only to Permitted Exceptions described on Schedule 6.5.\n(b) Borrower shall maintain good and marketable title to the Inventory Collateral subject to Permitted Exceptions and shall defend such title against all claims of other Persons except Lender.\n(c) Borrower shall not transfer, sell, assign, or enter into any options to purchase, installment sales contracts or contracts for deed with respect to all or any portion of the Inventory Collateral. Borrower shall not take any action (or permit or consent to the taking of any action) which might impair the value of the Inventory Collateral or any of the rights of Lender in the Inventory Collateral.", "snippet_links": [{"key": "at-the-time", "type": "clause", "offset": [4, 15]}, {"key": "borrower-will", "type": "clause", "offset": [52, 65]}, {"key": "title-to-all", "type": "clause", "offset": [110, 122]}, {"key": "the-inventory", "type": "clause", "offset": [126, 139]}, {"key": "subject-only", "type": "definition", "offset": [151, 163]}, {"key": "permitted-exceptions", "type": "clause", "offset": [167, 187]}, {"key": "on-schedule", "type": "definition", "offset": [198, 209]}, {"key": "borrower-shall", "type": "clause", "offset": [219, 233]}, {"key": "title-to-the", "type": "clause", "offset": [263, 275]}, {"key": "subject-to", "type": "definition", "offset": [297, 307]}, {"key": "claims-of-other-persons", "type": "clause", "offset": [369, 392]}, {"key": "options-to-purchase", "type": "clause", "offset": [473, 492]}, {"key": "sales-contracts", "type": "definition", "offset": [506, 521]}, {"key": "contracts-for-deed", "type": "clause", "offset": [525, 543]}, {"key": "with-respect-to", "type": "clause", "offset": [544, 559]}, {"key": "any-action", "type": "definition", "offset": [632, 642]}, {"key": "consent-to", "type": "clause", "offset": [657, 667]}, {"key": "the-value", "type": "clause", "offset": [713, 722]}, {"key": "rights-of-lender", "type": "clause", "offset": [765, 781]}], "hash": "9186e6e05f8aaa283b26e610d601d9e7", "id": 10}], "next_curs": "Cl0SV2oVc35sYXdpbnNpZGVyY29udHJhY3RzcjkLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ih1pbnZlbnRvcnktY29sbGF0ZXJhbCMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"title": "Inventory Collateral", "children": [["notice-to-processors-rights-as-buyer", "Notice to Processors/Rights as Buyer"], ["pricing-credit-terms-and-accounts", "Pricing, Credit Terms and Accounts"]], "size": 12, "parents": [["miscellaneous", "Miscellaneous"], ["general", "General"], ["headings", "Headings"], ["lien-subordination", "Lien Subordination"], ["management-of-collateral", "Management of Collateral"]], "id": "inventory-collateral", "related": [["possessory-collateral", "Possessory Collateral", "Possessory Collateral"], ["assemble-collateral", "Assemble Collateral", "Assemble Collateral"], ["equipment-and-inventory", "Equipment and Inventory", "Equipment and Inventory"], ["real-property-collateral", "Real Property Collateral", "Real Property Collateral"], ["personal-property-collateral", "Personal Property Collateral", "Personal Property Collateral"]], "related_snippets": [], "updated": "2025-07-07T12:36:13+00:00", "also_ask": ["What key definitions and scope limitations should be included for 'Inventory Collateral'?", "How can the clause be structured to maximize priority and protection against competing secured parties?", "What are the most common drafting pitfalls that could undermine enforceability in bankruptcy or litigation?", "How does this clause compare to UCC Article 9 standards and relevant case law interpretations?", "What evidence is typically required in court to prove the existence and value of inventory collateral?"], "drafting_tip": "Define 'Inventory Collateral' precisely to avoid ambiguity; specify inclusion and exclusion criteria to prevent disputes; require regular reporting to ensure accurate monitoring.", "explanation": "The Inventory Collateral clause defines inventory owned by a borrower as collateral for a loan or other financial obligation. This means that if the borrower defaults, the lender has a legal claim to the inventory, which can include goods held for sale, raw materials, or finished products. The clause typically outlines how the inventory is identified, maintained, and valued, and may require the borrower to keep records or provide access for inspection. Its core practical function is to secure the lender\u2019s interest by providing a tangible asset that can be seized or sold to recover outstanding debts, thereby reducing the lender\u2019s risk."}, "json": true, "cursor": ""}}