Eligible Inventory definition
Examples of Eligible Inventory in a sentence
The Administrative Agent may rely, in determining which Accounts are Eligible Accounts, and which Inventory is Eligible Inventory, on all statements and representations by the Borrowers and their respective Subsidiaries with respect thereto, as contained in the Borrowing Base Certificate, and in any other Loan Document.
The Inventory and Equipment (other than vehicles or Equipment out for repair) of the Loan Parties are not stored with a bailee, warehouseman, or similar party (other than DHL) and are located only at, or in-transit between or to, the locations identified on Schedule 4.28 (as such Schedule may be updated pursuant to Section 5.14), except for Inventory (other than Eligible Inventory) and Equipment the aggregate value of which at any time does not exceed twenty-five percent (25%) of Reseller’s Inventory.
Consign any of its or their Eligible Inventory or sell any of its or their Eligible Inventory on bill and hold, sale or return, sale on approval, or other conditional terms of sale, unless the consignment or sale of such Eligible Inventory is reported on the next scheduled Collateral Report immediately following such consignment or sale, in which case, such Inventory shall no longer be Eligible Inventory.
In addition to the foregoing, the Administrative Agent may request no more than once during each Fiscal Year of the Borrower Agent an appraisal of the Net Orderly Liquidation Value of Eligible Inventory and Eligible Foreign In-Transit Inventory contributing to the Borrowing Base, at the sole cost and expense of the Borrowers.
As to each item of Inventory that is identified by Borrower as Eligible Inventory in a Borrowing Base Certificate submitted to Agent, such Inventory is (a) of good and merchantable quality, free from known defects, and (b) not excluded as ineligible by virtue of one or more of the excluding criteria (other than Agent-discretionary criteria) set forth in the definition of Eligible Channel Financed Inventory or Eligible Non-Channel Financed Inventory, as applicable.