Eligible Used Inventory Clause Samples
The 'Eligible Used Inventory' clause defines which used goods or products qualify for inclusion under the terms of an agreement. Typically, this clause sets out specific criteria such as age, condition, prior usage, or compliance with certain standards that used inventory must meet to be considered eligible. For example, it may require that used equipment be less than five years old and in good working order. The core function of this clause is to ensure that only acceptable and agreed-upon used items are included in transactions, thereby reducing disputes and clarifying expectations between parties.
Eligible Used Inventory. On receipt of each Borrowing Base Certificate, DFS will credit Borrower with the lesser of (1) one hundred percent (100%) of the Value of Borrower's Eligible Used Inventory, and (2) Twelve Million Five Hundred Thousand Dollars ($12,500,000) (such lesser amount being called the "ELIGIBLE USED INVENTORY AVAILABILITY").
Eligible Used Inventory. On receipt of each Borrowing Base Certificate, DFS will credit Borrower with the lesser of (1) one hundred percent (100%) of the Value of Borrower's Eligible Used Inventory, and (2) Ten Million Dollars ($10,000,000) (such lesser amount being called the "Eligible Used Inventory Availability"); provided, however, the age of the Inventory plus the length of depreciation shall not exceed one hundred twenty (120) months.
Eligible Used Inventory. On receipt of each Borrowing Base Certificate, CDF will credit Borrower with the lesser of (a) the sum of, without duplication, (i) seventy percent (70%) of the Value of Borrower's Eligible Used Inventory listed in such Borrowing Base Certificate that is owned by Borrower for 365 days or less, and (ii) only for the period of the Modification Date through and including April 30, 2003 and solely in order to collateralize the SAU, Unpaid Curtailments and Unpaid Matured Inventory, forty percent (40%) of the Value of Borrower's Eligible Used Inventory listed on such Borrowing Base Certificate that is owned by Borrower more than 365 days (after April 30, 2003, such percentage shall be zero percent), and (b) Three Million Dollars ($3,000,000) ("Eligible Used Inventory Availability")."
Eligible Used Inventory. The reference in the definition of "Eligible Used Inventory" in the existing proviso thereto to "Eligible New Inventory" is deleted and replaced with "Eligible Used Inventory". In addition, the following is added at the end of the definition of "Eligible Used Inventory": "provided, however, that from the Modification Date, through and including April 30, 2003, CDF will consider Inventory owned by Borrower more than 365 days, subject to all other eligibility criteria and the terms of this Agreement, to be Eligible Used Inventory solely for the purpose of calculating Eligible Used Inventory Availability."
Eligible Used Inventory. On receipt of each Borrowing Base Certificate, DFS will credit Borrower with the lesser of (a) * of the Value of Borrower's Eligible Used Inventory listed in such Borrowing Base Certificate, and (b) * ("Eligible Used Inventory Availability").
Eligible Used Inventory. Section 2.3.1 of the Original Loan Agreement is deleted in its entirety and replaced with the following:
Eligible Used Inventory. On receipt of each Borrowing Base Certificate, Administrative Agent will treat as eligible the lesser of (1) the sum of (a) the Value of Borrower's Eligible Direct Used Inventory plus (b) the Value of Borrower's Eligible Indirect Used Inventory, and (2) 25% of the sum of (a) the Value of Borrower's Eligible New Inventory, (b) the Value of Borrower's Eligible Rental Inventory, (c) the Value of Borrower's Eligible Direct Used Inventory, and plus (d) the Value of Borrower's Eligible Indirect Used Inventory (such lesser amount being called the "Eligible Used Inventory Availability").