Performance Reserve Sample Clauses

Performance Reserve. During each calendar month during the term of this Agreement, DFS agrees to set aside an amount equal to * of the average daily balance during the prior calendar month (using the beginning of the month balance and end of the month balance and dividing by 2) *. DFS will, under the conditions set forth below, apply the Reserve Amount accumulated monthly during a calendar year against Borrower's amounts owed to DFS for interest which accrues after March 31 of the calendar year following the year in which the Performance Reserve accumulated; provided that at the time any such Performance Reserve is so applied, Borrower is then still financing all Inventory through DFS or other lenders approved by DFS in its sole discretion.