Eligible Lumber Inventory Clause Samples

The 'Eligible Lumber Inventory' clause defines which lumber inventory qualifies for inclusion under a specific agreement, such as a financing or supply contract. It typically sets out criteria that the lumber must meet—such as being of a certain grade, stored in approved locations, or free from liens or encumbrances—to be considered eligible. By clearly specifying what inventory counts as eligible, this clause ensures that both parties have a mutual understanding of what assets are covered, thereby reducing disputes and clarifying the scope of the agreement.