Common use of OFFSET PROVISIONS Clause in Contracts

OFFSET PROVISIONS. From time to time, the Floor Plan Borrowers may establish one or more general ledger accounts with the Swing Line Bank (collectively, the “Offset Accounts”) into which payments may be made and other funds may be deposited (the aggregate amount of such payments and funds credited to the Offset Accounts at any time herein referred to as the “Offset Amount”). At any time the Floor Plan Borrowers have established one or more Offset Accounts and any Offset Amount is credited to such Offset Accounts, solely for purposes of calculating interest pursuant to paragraph (d) above, for each day for which interest is to be calculated hereunder: (i) the principal amount of any outstanding Used Vehicle Floor Plan Loans and Used Vehicle Swing Line Loans shall be reduced by the Offset Amount (first reducing any Used Vehicle Swing Line Loans, if any and next reducing any Used Vehicle Floor Plan Loans); (ii) if any Offset Amount remains after application in accordance with clause (i), such Offset Amount shall reduce the New Vehicle Floor Plan Loans and the New Vehicle Swing Line Loans (first reducing any New Vehicle Swing Line Loans and next reducing any New Vehicle Floor Plan Loans). No reduction shall result in the principal amount of the Used Vehicle Swing Line Loans, Used Vehicle Floor Plan Loans, New Vehicle Swing Line Loans or New Vehicle Floor Plan Loans being less than zero. On the first Business Day of each month and from time to time upon request by the Agent, the Swing Line Bank shall provide the then current Offset Amount as well as the requested historical amounts thereof to the Agent.

OFFSET PROVISIONS. From time to time, the Floor Plan Borrowers may establish one or more general ledger accounts with the Swing Line Bank (collectively, the “Offset Accounts”) into which payments may be made and other funds may be deposited (the aggregate amount of such payments and funds credited to the Offset Accounts at any time herein referred to as the “Offset Amount”). At any time the Floor Plan Borrowers have established one or more Offset Accounts and any Offset Amount is credited to such Offset Accounts, solely for purposes of calculating interest pursuant to paragraph paragraphs (d) and (e) above, for each day for which interest is to be calculated hereunder: , (i) the portion of the outstanding Swing Line Loans that is equal to the Offset Amount on such day (but not to exceed the Used Vehicle Borrowing Base) shall be deemed to be Used Vehicle Swing Line Loans and the remaining portion of such outstanding Swing Line Loans shall be deemed to be New Vehicle Swing Line Loans, (ii) after giving effect to the provisions of clause (i), the principal amount of any outstanding Used Vehicle Floor Plan Loans and such Used Vehicle Swing Line Loans shall be reduced by the Offset Amount (first reducing any on such day and, in the event the Offset Amount for such day exceeds the Used Vehicle Borrowing Base, the principal amount of New Vehicle Swing Line LoansLoans shall be reduced by the amount of such excess (but in no event shall the principal amount of all outstanding Swing Line Loans be reduced to an amount that is less than zero), if any and next reducing any (iii) the portion of the outstanding Floor Plan Loans that is equal to the excess of (A) the Used Vehicle Floor Plan Loans); Borrowing Base, over (iiB) if any the Offset Amount remains after application in accordance with clause (i)on such day, such Offset Amount shall reduce the New be deemed to be Used Vehicle Floor Plan Loans and the New Vehicle Swing Line Loans (first reducing any New Vehicle Swing Line Loans and next reducing any New Vehicle Floor Plan Loans). No reduction shall result in the principal amount remaining portion of the Used Vehicle Swing Line Loans, Used Vehicle Floor Plan Loans, New Vehicle Swing Line Loans or New Vehicle outstanding Floor Plan Loans being less than zeroshall be deemed to be Floor Plan Loans used to finance New Motor Vehicles, Demonstrators or Rental Motor Vehicles. On the first Business Day of each month and from time to time upon request by the Agent, the Swing Line Bank shall provide the then current Offset Amount as well as the requested historical amounts thereof to the Agent.