Advance Rates. The advance rates with respect to inventory as well as additional details of the financing program are set forth in the Program Terms Letter, the terms of which are incorporated herein by this reference. This Agreement concerns the extension of credit, and not the provision of goods or services.
Advance Rates. Advances shall be permitted under the Line of Credit up to a maximum aggregate principal amount equal to the lesser of (a) Twenty Million Dollars ($20,000,000), or (b) the sum of (i) eighty-five percent (85%) of Eligible Receivables, and (ii) ninety-five percent (95%) of the cash or cash equivalents on deposit with and under the exclusive control of the Bank. The determination of what constitutes a "cash equivalent" and whether any such property is on deposit with or under the exclusive control of the Bank shall be determined by the Bank, from time to time, in its sole and absolute discretion. The Advance Rate formula set forth in item (b) in the preceding sentence may be changed, modified or amended at any time and from time to time as provided in Section 10.10 hereof. Availability under the Line of Credit shall be reduced, on a dollar-for-dollar basis, for (i) any Outstanding Letter of Credit Obligations, which shall not exceed in the aggregate, at any time and from time to time, the sum of Five Million Dollars ($5,000,000), and (ii) any Unwinding Amounts, existing at any time, and from time to time. As used herein, the term " Unwinding Amounts" is intended to represent the credit risk element with respect to any interest rate swap, cap or collar agreement or other similar agreement entered into from time to time by the
Advance Rates. The Borrower may request advances and readvances of the ------------- Loan subject to the following requirements, limitations and sub-limitations:
(a) all advances made hereunder shall be secured by Eligible Mortgage Loans;
(b) except as otherwise provided in Subsection (c) hereof, each advance of the Loan secured by Eligible Mortgage Loans shall not exceed 98% of the lesser of i) the Committed Purchase Price (if applicable) or ii) the aggregate original principal balance of the Mortgage Loans securing such advance; and
(c) each advance of the Loan secured by an Eligible Mortgage Loan that is a Non-conforming Loan shall not exceed 95% of the lesser of (i) the Committed Purchase Price or (ii) the aggregate original principal balance of the Mortgage Loans securing such advance; or (iii) the market value as determined by BANK (provided that BANK supply Custodian with its determination of such market value prior to any adjustments if based on BANK's market value). and
(d) the total amount advanced against Eligible Mortgage Loans for which BANK has not received the original, properly endorsed Mortgage Note shall not at any time exceed the Wet Settlement Sublimit; and
(e) each advance of the Loan secured by Eligible Repurchase Mortgage Loans shall not exceed 70% of the lesser of (i) the original principal amount, (ii) the current outstanding principal balance, or (iii) appraised value of the real estate referred to in the Mortgage at the time of advance; and
Advance Rates. Provided that Shareholder timely deposits the loan proceeds into Borrower's operating account at the Bank and Borrower and Shareholder execute and deliver the Subordination Agreement to Lender and, further provided that no Event of Default, or act, omission or event that with the giving of notice and/or passage of time would constitute an Event of Default, has occurred and is continuing, and without limiting any other rights available to Lender under the Loan Documents, Lender will not reduce the advance rates set forth in Section 2.1 of the Loan Agreement prior to September 1, 1999. Thereafter, provided that no Event of Default, or act, omission or event that with the giving of notice and/or passage of time would constitute an Event of Default, has occurred and is continuing, the advance rates will be reduced as set forth on Exhibit "B" attached hereto and incorporated herein by this reference. Notwithstanding anything to the contrary in this Section or in Exhibit "B", upon the consummation of any private placement facility of $5,000,000 or more issued by Borrower, the advance rates for Eligible Accounts and raw materials Eligible Inventory will automatically and without further notice be reduced to eighty percent (80%) and forty-two percent (42%), respectively.
Advance Rates. Subject to the provisions of subclauses (ii), (iii) hereof, the Revolver Principal Balance shall at no time be in an amount which exceeds the lesser of (A) $1,800,000 (the "Maximum Amount") or (B) the sum of (I) the product of 85%, multiplied by all Eligible Accounts which exist as of the date upon which a request is made by Borrower for a Revolver Advance, plus (II) the lesser of (1) $800,000 or (2) the product of 50%, multiplied by all Eligible Inventory which exists as of the date upon which a request is made by Borrower for a Revolver Advance (the amount described in this subclause (B) hereinafter is referred to as the "Borrowing Base").
Advance Rates. (a) Notwithstanding anything to the contrary contained in the Loan Agreement or this First Amendment and so long as no Event of Default has occurred and is continuing or would be caused by either of the following:
(i) For purposes of compliance with Section 7.21 of the Loan Agreement, for the calendar months of October 2001 and November 2001 only, the Effective Advance Rate shall be calculated by dividing (i) the sum of the outstanding balance of the Loan Account plus the amount of all outstanding stand-by Letters of Credit in an aggregate amount in excess of $1,000,000 by (ii) the sum of the value of Eligible Inventory plus the undrawn amount of the Availability Letter of Credit.
(ii) For purposes of compliance with Section 7.21 of the Loan Agreement, the maximum Effective Advance Rate for the calendar month of December 2001 shall be 50%.
(b) It shall be deemed an Event of Default under the Loan Agreement if, as of the applicable date of determination, the Effective Advance Rate as calculated in subsection (a)(i) above exceeds the applicable maximum Effective Advance Rates set forth in Schedule 7.21 of the Loan Agreement.
Advance Rates. The Bank will make loans to the Borrower under the Revolver at any time and from time to time until the maturity date in such amounts as may be requested by the Borrower up to an aggregate amount outstanding at any time equal to the lesser of (a) $30,000,000, or (b) the total of (i) 90% of Eligible Government Accounts Receivable; (ii) 85% of Eligible Commercial Accounts Receivable; (iii) 50% of Unbilled Accounts Receivables not to exceed $3,500,000 plus (iv) $10,000,000.00 (the “Overadvance”). The Overadvance will be eliminated from this definition within 2 years from closing. The foregoing defined terms will be specified by the Bank in the documentation for the Credit Facility consistent with their current definitions. August 1, 2003
Advance Rates. Sub-paragraph (c) is deleted in its entirety and is substituted with the following:
(c) the total amount advanced against Eligible Mortgage Loans for which Bank has not received the original, properly endorsed Mortgage Note shall not exceed thirty percent (30%) of the Maximum Loan Amount.
Advance Rates. The Credit Parties hereby acknowledge receipt of notice from the LC Agent prior to the date hereof (in compliance with the proviso to the definition of "Borrowing Base" in the Letter of Credit Agreement), to the effect that, as of the date four months after the Closing Date, the Advance Rates have been reduced by (a) 2.5% in each case other than other under clauses (i)(A) and (i)(F) of such definition, and (b) 5% under clause (i)(F) of such definition.
