Eligible Intransit Inventory definition

Eligible Intransit Inventory means In-Transit Inventory which meets all eligibility criteria set forth in the definition of Eligible Inventory, and for which each of the following conditions have been and continue to be satisfied: (i) Lender shall have received documentation which it, in its sole discretion, deems satisfactory to confirm that such Inventory has been shipped and title and risk of loss has transferred to either Borrower, (ii) such Borrower has delivered to Lender (or its agent), and Lender (or its agent) is in possession of, the originals of the Documents for such Inventory, each of which shall be consigned in favor of Lender, (iii) Lender shall have received evidence satisfactory to it, in its sole discretion, that such Inventory is adequately insured with Lender as the sole loss payee in accordance with the requirements of this Agreement or any other agreement between Lender and Borrowers, (iv) Borrowers, or either of them, shall have engaged a customs broker, acceptable to Lender, who shall have entered into the Imported Goods Agreement, with respect to the appointment of such broker as Lender’s agent for the handling of the Documents for such Inventory, (v) if either Borrower is in default of any of its obligations to the Vendor thereof (whether related to such Inventory or otherwise), such Vendor does not have any right on such date, under applicable law or pursuant to any document relating to the sale of such Inventory, to reclaim, divert the shipment of, reroute, repossess, stop delivery of or otherwise assert any lien rights or title retention with respect to such Inventory;(vi) all inspection or other requirements of law in the country of origin that are applicable to such Inventory and are a prerequisite to the shipment thereof have been satisfied; (vii) such Inventory complies in all material respects with all United States laws concerning food safety and other similar laws applicable to such Inventory; (viii) such Inventory is in the possession of a common carrier, which is not an Affiliate of such Vendor or either Borrower; (ix) such Inventory is not subject to a hold by the U.S. Food and Drug Administration or any other governmental unit for more than 30 calendar days, whether for inspection purposes or otherwise; (x) such Inventory has not been in transit for more than 75 calendar days; and (xi) Borrowers, or either of them, shall have furnished to Lender such other documents and information with respect to such Inventory as Lender shall request from time...
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Eligible Intransit Inventory means any raw materials or finished goods inventory of the Borrower or any Guarantor (other than packaging, crating and supplies inventory) which meets all of the requirements of Eligible Inventory other than clause (b) thereof and;
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Examples of Eligible Intransit Inventory in a sentence

  • Lender may, in its sole discretion, at any time or time hereafter, increase or decrease the ratio of its advances against Eligible Inventory and Eligible Intransit Inventory for any reason Lender shall deem necessary without establishing a custom, and each such increase or decrease shall become effective immediately for purposes of calculating new advances hereunder.

Related to Eligible Intransit Inventory

  • Eligible In-Transit Inventory means, as of any date of determination thereof, without duplication of other Eligible Inventory, In-Transit Inventory:

  • Eligible Inventory means and include Inventory, excluding work in process, with respect to each Borrower, valued at the lower of cost or market value, determined on a first-in, first-out basis, which is not obsolete, slow moving or unmerchantable as determined by Agent in its Permitted Discretion and which Inventory, based on such considerations as Agent may from time to time deem appropriate in its Permitted Discretion including whether the Inventory is subject to a perfected, first priority security interest in favor of Agent and no other Lien (other than a Permitted Encumbrance). Notwithstanding anything herein to the contrary, no Inventory shall be Eligible Inventory to the extent such Inventory was acquired by a Borrower pursuant to an entity creation under Section 7.12 or a Permitted Acquisition, unless Agent has (i) completed field examinations with respect to such Inventory, the results of which are satisfactory in form and substance to Agent in its Permitted Discretion or (ii) waived such restriction in its Permitted Discretion. In addition, Inventory shall not be Eligible Inventory if it: (a) does not conform in all material respects to all standards imposed by any Governmental Body which has regulatory authority over such goods or the use or sale thereof; (b) is in transit (other than between one or more locations where Borrowers are permitted hereunder to maintain or store Inventory and such location is the subject of a Lien Waiver Agreement or a Processor’s Agreement, as applicable, unless such location is owned by Borrower); (c) is located outside the continental United States or at a location that is not otherwise in compliance with this Agreement; (d) constitutes Consigned Inventory (other than Consigned Inventory that is subject to a warehouseman’s waiver in form and substance satisfactory to Agent); (e) is the subject of an Intellectual Property Claim; (f) is subject to a License Agreement that limits, conditions or restricts the applicable Borrower’s or Agent’s right to sell or otherwise dispose of such Inventory, unless Agent is a party to a Licensor/Agent Agreement with the Licensor under such License Agreement (or Agent shall agree otherwise in its Permitted Discretion after establishing reserves against the Formula Amount with respect thereto as Agent shall deem appropriate in its Permitted Discretion); (g) at any time following seventy-five (75) days after the Closing Date (or such later date agreed to by Agent), is situated at a location not owned by a Borrower unless the owner or occupier of such location has executed in favor of Agent a Lien Waiver Agreement or a Processor’s Agreement, as applicable (or Agent shall have established reserves against the Formula Amount with respect thereto as Agent shall deem appropriate in its Permitted Discretion in an amount not to exceed the equivalent of three (3) months’ rental obligation with respect to such location); or (h) if the sale of such Inventory would result in the creation of a Receivable which, on the date of such sale, would fail to constitute an Eligible Receivable due to the operation of any of clauses (b), (c) or (e) – (p) of such definition.

  • In-Transit Inventory means Inventory of a Borrower which is in the possession of a common carrier and is in transit from a Foreign Vendor of a Borrower from a location outside of the continental United States to a location of a Borrower that is within the continental United States.

  • Eligible Finished Goods Inventory means Inventory that qualifies as Eligible Inventory and consists of first quality finished goods held for sale in the ordinary course of Borrowers’ business.

  • Inventory Formula Amount means (i) the lesser of (x) 75% of the Value of Eligible Inventory and (y) 85% of the NOLV Percentage of the Value of Eligible Inventory plus (ii) the lesser of (x) the lesser of (1) 75% of the Value of Eligible In-Transit Inventory and (2) 85% of the NOLV Percentage of the Value of the Eligible In-Transit Inventory and (y) $10,000,000.