Inventory Loan Component Clause Samples
The Inventory Loan Component clause defines the terms under which a lender provides financing specifically for a borrower's inventory. Typically, this clause outlines the types of inventory eligible for the loan, the method for valuing inventory, and the procedures for reporting and monitoring inventory levels. Its core practical function is to ensure that the lender has clear rights and protections regarding the inventory used as collateral, thereby reducing the risk of loss and ensuring the loan is properly secured.
Inventory Loan Component. The term “Inventory Loan Component” is hereby amended in its entirety to read as follows:
Inventory Loan Component. The term Inventory Loan Component shall mean that certain timeshare interval inventory loan provided by Lender to Borrower pursuant to this Agreement in the following amounts: (a) $50,000,000.00 until July 8, 2009; (b)$30,000,000.00 beginning on July 8, 2009; and (c) $25,000,000.00 beginning on December 31, 2009.”
Inventory Loan Component. The term “Inventory Loan Component” shall mean that certain $40,000,000.00 timeshare interval inventory loan provided by Lender to Borrower pursuant to this Agreement.
Inventory Loan Component. Upon the terms and subject to the conditions set forth in this Agreement, including, but not limited to, Section 2.7 hereof, during the Revolving Loan Term the Lender shall make Advances with respect to the Inventory Loan Component to the Borrower, and the Borrower may borrow, repay and in the aggregate reborrow during the Revolving Loan Term, in an amount not to exceed at any time in the aggregate the lesser of: (i) the Loan to Retail Value Ratio of the Required Retail Value of the Inventory or (ii) $40,000,000.00.