Adjusted Excess Availability Clause Samples
The Adjusted Excess Availability clause defines a specific calculation used to determine the amount of credit or liquidity available to a borrower under a financing agreement, after accounting for certain adjustments or deductions. Typically, this clause outlines how standard excess availability is modified by subtracting reserves, outstanding obligations, or other specified amounts, ensuring that the lender has a clear and accurate picture of the borrower's accessible funds. Its core practical function is to provide a more precise measure of available credit, thereby protecting the lender from over-advancing funds and managing credit risk.
Adjusted Excess Availability. The definition of “Adjusted Excess Availability” in Section 1.4 of the Loan Agreement is hereby amended by deleting such definition in its entirety and replacing it with the following: “ ‘Adjusted Excess Availability’ shall mean the amount, as determined by Agent, calculated at any date, equal to: (a) the Adjusted Loan Limit minus (b) the sum of: (1) the amount of all then outstanding and unpaid Obligations, plus (2) the amount of all Reserves, plus (3) the aggregate amount of all then outstanding and unpaid trade payables and other obligations of Borrowers which are outstanding more than sixty (60) days past due as of such time (other than trade payables or other obligations being contested or disputed by Borrowers in good faith), plus (4) without duplication, the amount of checks issued by Borrowers to pay trade payables and other obligations which are more than sixty (60) days past due as of such time (other than trade payables or other obligations being contested or disputed by Borrowers in good faith), but not yet sent.”
Adjusted Excess Availability. On the Closing Date, the Adjusted Excess Availability as determined by the Collateral Monitoring Agent shall be not less than $400,000,000 after giving effect to the initial Loans made or to be made and the Letters of Credit issued or to be issued on the Closing Date, as reflected by the certification made in the Closing Date Certificate.
Adjusted Excess Availability. Borrower shall maintain at all times Adjusted Excess Availability of at least $15,000,000."
Adjusted Excess Availability. At any time of determination, the then Excess Availability, minus, if applicable, the Incremental Seasonal Amount if the Seasonal Availability Period is in effect at such time; provided, however, that Adjusted Excess Availability shall not apply at any time after the payment in full of the Indebtedness under the Second Lien Loan Facility.
Adjusted Excess Availability. At any time of determination, the then Excess Availability, minus, if applicable in accordance with Section 10.1(b), the Incremental Seasonal Amount at such time. Administrative Agent. GA Capital, LLC, acting as administrative agent for the Lenders, and each other Person appointed as the successor Administrative Agent in accordance with §14.6.