A/R Financing Clause Samples
A/R Financing. In the event that Borrowers obtain third party financing (“A/R Financing”) which is a borrowing base facility secured by Borrowers’ Accounts and which is in form and substance reasonably satisfactory to Lender, Lender shall promptly take such action and execute any such documents as may be reasonably requested by Borrower’s Representative and at Borrowers’ expense to grant a prior Lien to the lender under such A/R Financing (the “A/R Lender”) in respect of the Collateral described in clauses (a) (other than items of equipment which are or become Fixtures), (b) and (c) of the definition thereof and the proceeds of such Collateral (collectively, the “Second Lien Collateral”) so long as:
(i) the Borrowers repay in full the outstanding principal balance of and any and all accrued and unpaid interest and fees on the Working Capital Facility Loan (as defined in the $50,000,000 Revolving Credit Agreement) and the $35,000,000 Non-Revolving Line of Credit Loan on the date such A/R Financing becomes effective; and
A/R Financing. Article 1 of the $10,700,000 Credit Agreement is hereby amended by adding the following new Section 1.17 immediately after the existing section 1.16:
A/R Financing. If at any time the A/R Facility terminates, Lenders shall immediately and automatically have a first lien on the A/R Facility Collateral and the Borrowers shall execute any and all agreements or documents and make any and all filings as requested by Lenders in order to give effect thereto.