Material Account Sample Clauses
A Material Account clause defines what constitutes a 'material' account or transaction within the context of an agreement, typically for the purposes of financial reporting, representations, or warranties. In practice, this clause sets a threshold—such as a specific monetary value or percentage—above which an account or transaction is considered significant enough to warrant special attention or disclosure. For example, only accounts exceeding a certain dollar amount may be subject to additional audit or reporting requirements. The core function of this clause is to ensure that only significant financial matters are highlighted, thereby streamlining compliance and focusing attention on issues that could materially impact the parties involved.
Material Account. In furtherance, and not in limitation, of Sections 6.10(a) and 6.10(b), but subject to the limitations of such Sections, the Loan Parties shall, within thirty (30) days (as such time period may be extended by the Administrative Agent, in its sole discretion) of the acquisition by any Loan Party of any Material Account that is not subject to a control agreement in favor of the Administrative Agent, for the benefit of the Secured Parties, use commercially reasonable efforts to deliver to the Administrative Agent a duly completed and executed control agreement, sufficient to perfect the Administrative Agent’s security interest under the Uniform Commercial Code and otherwise in form and substance reasonably satisfactory to the Administrative Agent. The Administrative Agent may elect not to request any documents, instruments, filings or opinions as contemplated by this Section 6.10 or the Security Agreement and the other Loan Documents if it determines in its sole discretion that the costs to the Loan Parties of perfecting a security interest or Lien in such property exceed the relative benefit of such security interest to the Secured Parties.