AVAILABILITY REDUCTION definition
AVAILABILITY REDUCTION as defined in Section 2.1.9.
AVAILABILITY REDUCTION means any action by Foothill, not consented to by Borrower, to change the standards or criteria for determining Eligible Accounts or Eligible Unbilled Accounts, or exclusions therefrom, create additional categories of Accounts that are not Eligible Accounts or Eligible Unbilled Accounts, reduce rates of advance against Eligible Accounts, Eligible Unbilled Accounts, or categories or subportions thereof (other than as expressly provided for herein with respect to the LEC Account Dilution Reserve or the Direct Account Dilution Reserve), create new reserves (except as set forth below with respect to SECTION 8 of this Agreement), or change the manner by which existing reserves are determined (except as set forth below with respect to SECTION 8 Of this Agreement), to the extent that such action, considered alone or in conjunction with other such actions (and offsetting the effect of any concurrent mitigating actions by Foothill to the extent they would effectively negate or reduce the effect of such action), would have the net effect of reducing Availability on any date of determination from what it otherwise would have been on such date of determination, had such action or related actions not occurred, all other things being equal. Changes in the LEC Account Dilution Reserve made in accordance with the terms of this Agreement based on increased LEC Account Dilution shall not constitute Availability Reductions. Changes in the Direct Account Dilution Reserve made in accordance with the terms of this Agreement based on increased Direct Account Dilution shall not constitute Availability Reductions. Reserves maintained by Foothill pursuant to any provision of SECTION 8 that expressly permits Foothill to maintain reserves with respect to items that would give rise to Events of Default absent the maintenance of such reserves shall not constitute Availability Reductions.