Common use of Compliance with Eligibility Standards Clause in Contracts

Compliance with Eligibility Standards. Each Account and all Inventory included in the calculation of the Borrowing Base does and will at all times meet and comply with all of the standards for Eligible Credit Card Receivables, Eligible Trade Receivables and Eligible Inventory. With respect to those Accounts that the Agent has deemed Eligible Credit Card Receivables or Eligible Trade Receivables (a) there are no facts, events or occurrences that in any way impair the validity, collectibility or enforceability thereof or tend to reduce the amount payable thereunder; and (b) there are no proceedings or actions known to the Borrowers which are threatened or pending against any Account Debtor that might result in any material adverse change in the Borrowing Base.