Common use of Maintenance of Collateral; Sale Clause in Contracts

Maintenance of Collateral; Sale. Subject to the Debtors' business judgment and reasonable commercial practice, the Debtors shall take good care of the Collateral and shall afford it suitable preventive maintenance. The Debtors shall pay the cost of all repairs to or maintenance of the Collateral and shall not permit anything to be done that might in any way impair the value of any of the Collateral or any of the security intended to be afforded by this Agreement. The Debtors shall conscientiously adhere to a well designed internal control system with respect to the Collateral, and such system shall be capable of permitting the Debtors and the Secured Party to identify readily at any time the location and condition of each and every item of Collateral. The Debtors will not permit any of the Collateral to become or be a fixture. The Debtors shall not sell, exchange, salvage, replace or dispose of any items or unit of its Inventory or Equipment or any of its rights therein, except that so long as no Debtor is in default hereunder, the Debtors shall have the right to sell its Inventory and Equipment in each case in the ordinary course of its business and it shall have the right to lease or re-lease its Inventory and Equipment in the ordinary course of its business.

Appears in 7 contracts

Samples: Credit Agreement (Eplus Inc), Credit Agreement (Eplus Inc), Credit Agreement (MLC Holdings Inc)

AutoNDA by SimpleDocs
Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!