Common use of Covenants Concerning the Collateral Clause in Contracts

Covenants Concerning the Collateral. (a) Each Borrower shall immediately inform the Administrative Agent of (1) any dispute in excess of $250,000 with a Customer and (2) the bankruptcy, insolvency, receivership, assignment for the benefit of creditors or suspension of business of any material Customer of which such Borrower has knowledge. No Borrower shall compromise or discount any Receivable without the prior written consent of the Administrative Agent except for (i) ordinary trade discounts or allowances for prompt payment, and (ii) prior to the occurrence of an Event of Default, such compromises or discounts that, after giving effect thereto, will not cause the Borrowing Base to be less than the unpaid principal balance of the Revolving Credit Exposure then outstanding.

Covenants Concerning the Collateral. (a) Each Borrower shall immediately inform the Administrative Agent of (1) any dispute in excess of $250,000 100,000 with a Customer and (2) the bankruptcy, insolvency, receivership, assignment for the benefit of creditors or suspension of business of any material Customer of which such Borrower has knowledge. No Borrower shall compromise or discount any Receivable without the prior written consent of the Administrative Agent except for (i) ordinary trade discounts or allowances for prompt payment, and (ii) prior to the occurrence of a Default or an Event of Default, such compromises or discounts that, after giving effect thereto, will not cause the Borrowing Base to be less than the unpaid principal balance of the Revolving Credit Exposure then outstanding.