Ineligible Debt definition
Ineligible Debt. A Debt (i) in respect of which the Client is in breach of any warranty or undertaking given to RBSIF; (ii) (excluding Approved Debts) which remains Outstanding at the expiry of the Funding Period; (iii) due by a Customer for which no Funding Limit has been established or which is in excess of a Funding Limit; (iv) owing by a Customer in excess of the Concentration Percentage, Customer Concentration Percentage or Export Concentration Percentage; (v) due by an Insolvent Customer (except where a Credit Limit applies); (vi) in respect of which the Client requests RBSIF Exhibit 10.1 not to issue or continue legal proceedings for its recovery; (vii) which is a Non-notifiable Debt; or other Debts as RBSIF may specify. Initial Debt: A Debt Outstanding on the Commencement Date. Insolvency Proceedings: In relation to any person (i) the exercise of any distress, execution, injunction, sequestration, attachment or other legal process against assets; (ii) any proposal or convening of a meeting with a view to a composition, assignment or arrangement with or the granting of a trust deed for creditors; (iii) the convening of a meeting for the purpose of considering or passing of any resolution for winding-up or administration; (iv) the service of a notice of intention to appoint or the appointment of an administrator or a receiver; (v) the service of a statutory demand; (vi) the presentation of a petition for the administration, winding-up or bankruptcy; (vii) the making of an order for winding-up or administration or the appointment of a provisional liquidator or judicial factor; or (viii) the taking of steps towards or the coming into force of a statutory moratorium. Insolvent: In relation to any person (i) the inability to pay debts as they fall due; (ii) intending or actually ceasing to trade; or (iii) if there are any Insolvency Proceedings. Liabilities: Any sum (present, contingent or future) payable by the Client to RBSIF whether or not under the Agreement and any losses, costs and expenses (including legal expenses on a full indemnity basis). Limit: Any limit, percentage, value or threshold detailed in a Finance Document. Memorandum Discounting Statement: The account(s) operated by RBSIF to calculate Discounting Charges and to record transactions in each Approved Currency and the Client’s liability to RBSIF under the Agreement. Nominated Account: The bank account(s) nominated and operated by RBSIF into which the Client must pay and procure that Customers pay Remit...
Ineligible Debt. A Debt (i) in respect of which the Client is in breach of any warranty or undertaking given to RBSIF; (ii) (excluding Approved Debts) which remains Outstanding at the expiry of the Funding Period; (iii) due by a Customer for which no Funding Limit has been established or which is in excess of a Funding Limit; (iv) owing by a Customer in excess of the Concentration Percentage, Customer Concentration Percentage or Export Concentration Percentage; (v) due by an Insolvent Customer (except where a Credit Limit applies); (vi) in respect of which the Client requests RBSIF not to issue or continue legal proceedings for its recovery; (vii) which is a Non-notifiable Debt; or other Debts as RBSIF may specify.
Ineligible Debt means a Purchased Debt where: -
(i) the Debtor is a Related Person or Entity of the Client; or
(ii) the Sale is made upon terms and conditions which are unacceptable to the Bank (acting reasonably); or
(iii) the Bank classifies the Debt as an Ineligible Debt upon the occurrence of any of the events set out in sub-Clauses 14.1 (a), (b), (c) (d) or (e); with
Examples of Ineligible Debt in a sentence
The Bank may at any time require the Client to Repurchase an Ineligible Debt from it.
Availability will be immediately reduced if any Debt becomes an Ineligible Debt.
Your Availability will immediately be affected if any Debt later becomes an Ineligible Debt.
If the Client is required by the Bank to buy back from the Bank any Outstanding Debt or Ineligible Debt at a price equivalent to its Notified Value or the Prepayment paid in respect of it (Repurchase), the relevant Debt will vest in the Client once the Bank receives the Repurchase price.
The Bank may apply such payment towards discharge of any Credit Protected Debt in priority to any Unprotected Debt or any Ineligible Debt.
More Definitions of Ineligible Debt
Ineligible Debt and "Concentration Limit Percentage") U.K. DEBTS
Ineligible Debt means any Debt which is not an Eligible Debt;