PACA Reserve definition
PACA Reserve means all amounts owed from time to time by the Borrower or any Subsidiary Guarantor to any Person on account of the purchase price or other amounts owed in respect of agricultural products or any services related to the foregoing and subject to PACA, to the extent that (i) such amounts are secured (by way of a grower’s lien, seller’s lien, statutory trust or similar security interest or priority arrangement) by the applicable agricultural products (such lien, a “PACA Super Priority Lien”) in accordance with PACA and (ii) such PACA Super Priority Lien would have priority over the Administrative Agent’s Lien in such agricultural products to the extent constituting Current Asset Collateral consisting of Inventory..
PACA Reserve means all amounts owed from time to time by the Borrower or any Subsidiary Guarantor to any Person on account of the purchase price or other amounts owed in respect of agricultural products or any services related to the foregoing and subject to PACA, to the extent that (i) such amounts are secured (by way of a grower’s lien, seller’s lien, statutory trust or similar security interest or priority arrangement) by the applicable agricultural products (such lien, a “PACA Super Priority Lien”) in accordance with PACA and (ii) the Administrative Agent determines in its Permitted Discretion that such PACA Super Priority Lien would have priority over the Administrative Agent’s Lien in such agricultural products to the extent constituting Current Asset Collateral.
PACA Reserve means any Reserve which Agent establishes in its reasonable good faith credit judgment for potential trust fund liability under PACA. Such reserve shall be adjusted no less often than weekly based on amounts owed for the purchase of produce as shown in the Borrowing Base Certificate most recently delivered to Agent, and credit shall be given for any PACA surety bond then outstanding, which is supported by a standby letter of credit, in each case, acceptable to Agent.
Examples of PACA Reserve in a sentence
The Borrowers ratify and confirm the continuing general and first priority Lien against all inventories of the Borrowers that are subject to the PACA Reserve and confirm any Security Agreement in favor of the Administrative Agent and the Lenders.
The undersigned on behalf of the Borrowers hereby confirms that the agreements, warranties and representations contained in the Credit Agreement apply to the PACA Reserve.
Each Person who executes this PACA Reserve Report on behalf of the Borrowers hereby certifies that (a) he/she is an officer of the Borrowers and in that capacity, such Person is authorized to execute this PACA Reserve Report on behalf of the Borrowers, and (b) the following information is accurate, complete and correct as of , 200 (the “Calculation Date”).
More Definitions of PACA Reserve
PACA Reserve means an Availability Reserve which shall be determined and reported in the PACA Reserve Report on a weekly basis and which shall equal the highest actual liability of Borrower at any point during the preceding week to vendors of agricultural commodities to Borrower to the extent the claims of such vendors are subject to PACA.
PACA Reserve means the Borrowing Base reserve established by Agent from time to time based upon the aggregate amount of unpaid trade payables for Inventory of each Borrower subject to PACA, producers’ liens or similar laws.
PACA Reserve means, as calculated from time to time, the gross amount of PACA Liabilities; minus the face amount of Letters of Credit issued hereunder by their terms to be applied to the same; minus the lesser of (x) $150,000 or (y) the amount of produce subject to PACA included in Inventory; as determined by the Agent in its sole discretion.
PACA Reserve means a reserve in such amount as Bank shall determine from time to time is necessary to cover the Borrowers’ aggregate liability for PACA Payables.
PACA Reserve. (an Availability Reserve): An amount equal to any liabilities owed at any time to any Person entitled to the benefits of PACA or any similar statute or regulation as reflected from time to time on the Borrowers' books and records.
PACA Reserve means any reserve which the Agent establishes in its reasonable discretion for potential trust fund liability under the Perishable Agricultural Commodities Act, 1930, 7 U.S.C. ss. 499 et seq., as amended.