Eligible Scrap Inventory definition
Eligible Scrap Inventory means and includes such scrap metal and additives used in the melt process as the Bank, in its reasonable discretion, considers suitable for use as a basis in making Working Capital Loans. The Bank agrees that the Inventory currently classified as scrap or additives Inventory by the Borrower on its operating and financial statements is eligible for inclusion in the Borrowing Base and may be used by the Borrower as a basis in obtaining Working Capital Loans and Letters of Credit. The value of Eligible Scrap Inventory shall be computed at the lower of its cost or market value.
Eligible Scrap Inventory means Inventory that qualifies as Eligible Inventory and consists of excess molybdenum and tungsten left over after goods have been manufactured.
Examples of Eligible Scrap Inventory in a sentence
Borrowing Base" means, as of each date of determination thereof, the sum of (a) eighty percent (80%) of the Net Outstanding Amount of Eligible Accounts, and (b) the lesser of Twelve Million Dollars ($12,000,000.00) or the sum of (i) fifty percent (50%) of the Net Security Value of Eligible Scrap Inventory, (ii) forty percent (40%) of the Net Security Value of Eligible Billet Inventory, and (iii) sixty percent (60%) of the Net Security Value of Eligible Finished Goods Inventory.