Discretionary Reserves definition
Discretionary Reserves has the meaning given in the definition of Reserve Amount.
Discretionary Reserves means reserves and adjustments in such amounts, and with respect to such matters, as the Administrative Agent in its Permitted Discretion shall from time to time deem reasonably necessary or appropriate in order to reflect, among others, (a) a material impediment to the Collateral Agent’s ability to realize upon the Eligible Receivables and the Eligible Vehicle Inventory, (b) amounts that any Credit Party is required to pay to the Agent or any Lender under this Agreement or any other Credit Document and has failed to pay after giving effect to any relevant cure period provided for herein, the payment of which the Borrowers are not contesting in good faith, (c) amounts for which claims have been asserted against the Eligible Receivables or the Eligible Vehicle Inventory or (d) criteria, events, conditions, delays, contingencies or risks which materially and adversely affect any component of the Borrowing Base or would reasonably be expected to have a Material Adverse Effect on the assets, business, financial performance or financial condition of the Credit Parties, taken as a whole; provided that (i) on the Closing Date, no Discretionary Reserves have been established by the Administrative Agent, (ii) the Administrative Agent shall not establish any Discretionary Reserves absent a material and adverse change in circumstances, (iii) the Administrative Agent shall promptly remove any Reserve once the Borrowers can demonstrate that (x) the material and adverse change which gave rise to such Reserve has been remedied or (y) such Reserve is otherwise no longer necessary and (iv) the amount of any Reserve shall have a reasonable relationship to the event, condition or other matter that is the basis for the establishment of such Reserve.
Examples of Discretionary Reserves in a sentence
The Member may elect to use its allocated share of Joint Reserves or its Discretionary Reserves, collected on Member’s behalf and held by CPCNH, for this purpose.
After the effective date of the Member’s termination of this Contract, any amount of the Member’s allocated share of Joint Reserves above that which is required to pay any costs incurred by CPCNH through the date of termination on behalf of the Member shall be allocated back to the Member for use as Discretionary Reserves, pursuant to CPCNH’s Financial Reserves Policy.
CPCNH shall, after the transference of eligible retail consumers to the entity’s successor Member CPA, allocate the Joint Reserves and Discretionary Reserves determined above to that Member.