Permitted Discretion Clause Samples
The Permitted Discretion clause defines the scope within which a party, typically one with decision-making authority, may exercise judgment or make choices under the contract. It sets boundaries or criteria for how discretion can be used, often requiring that decisions be reasonable, made in good faith, or not arbitrary. For example, a lender may have permitted discretion to approve or deny certain borrower requests, provided the decision aligns with agreed standards. This clause ensures that discretionary powers are not abused and provides predictability and fairness in the exercise of contractual rights.
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Permitted Discretion a determination made in the exercise, in good faith, of reasonable business judgment (from the perspective of a secured, asset-based lender).
Permitted Discretion a determination made in good faith and in the exercise of discretion from the perspective of a secured asset-based lender. Permitted Lien: as defined in Section 10.2.2.
Permitted Discretion. A determination made in the exercise of reasonable (from the perspective of a secured asset-based lender in the same or similar circumstances) business judgment.
Permitted Discretion. Agent’s reasonable credit judgment (from the perspective of an asset-based lender), exercised in good faith, based upon its consideration of any factor that it reasonably believes to be relevant, including, without limitation, any factor that it believes (a) could adversely affect the quantity, mix or value of Collateral (including any Applicable Law that may inhibit collection of an Account), the enforceability or priority of Agent’s Liens, or the amount in liquidation of any Collateral; (b) suggests that any collateral report or financial information delivered by any Obligor is incomplete, inaccurate or misleading in any material respect; (c) increases the likelihood of any Insolvency Proceeding involving an Obligor, or (d) creates or could result in a Default or Event of Default. In exercising such judgment, Agent may consider any factors that could increase the credit risk of lending to Borrowers on the security of the Collateral. In exercising its Permitted Discretion with respect to modifying eligibility criteria for Eligible Accounts and Eligible Inventory, Agent will use commercially reasonable efforts to notify Borrower Agent prior to modifying the criteria provided in the definitions thereof on the Original Closing Date or thereafter. Permitted Investment: an Investment (including any Permitted Acquisition); provided, that either (i) Availability, on a Pro Forma Basis after giving effect to such Investment, for each of the 30 days prior to and including the date such Investment is consummated, is at least the greater of (1) $12,500,000 and (2) twenty-five percent (25%) of the Revolver Commitments or (ii) (1) the Fixed Charge Coverage Ratio, on a Pro Forma Basis, is at least 1.00 to 1.00 and (2) Availability, on a Pro Forma Basis after giving effect to such Investment, for each of the 30 days prior to and including the date of such Investment, is at least the greater of (A) $7,500,000 and (B) fifteen percent (15%) of the Revolver Commitments.
Permitted Discretion a determination made in good faith and in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment, following either (x) consultation with the Loan Party Agent or (y) two (2) Business Days’ advance notice to the Borrowers.
Permitted Discretion. Agent’s reasonable credit judgment (from the perspective of an asset-based lender), exercised in good faith, based upon its consideration of any factor that it reasonably believes to be relevant, including, without limitation, any factor that it believes (a) could adversely affect the quantity, mix or value of Collateral (including any Applicable Law that may inhibit collection of an Account), the enforceability or priority of Agent’s Liens, or the amount in liquidation of any Collateral; (b) suggests that any collateral report or financial information delivered by any Obligor is incomplete, inaccurate or misleading in any material respect; (c) increases the likelihood of any Insolvency Proceeding involving an Obligor, or (d) creates or could result in a Default or Event of Default. In exercising such judgment, Agent may consider any factors that could increase the credit risk of lending to Borrowers on the security of the Collateral. In exercising its Permitted Discretion with respect to modifying eligibility criteria for Eligible Accounts and Eligible Inventory, Agent will use commercially reasonable efforts to notify Borrower Agent prior to modifying the criteria provided in the definitions thereof on the Original Closing Date or thereafter.
Permitted Discretion. 4 2.3 Requests for Revolving Credit Loans.............................................................5 (a) Credit Requests Executed by the Borrower......................................5 (b) Requests for Borrowing Deemed Given...........................................5 2.4 Funding of Revolving Credit Loans...............................................................6 (a) Agent Election as to Funding...........................................................6 (b) Same Day Funding by Lenders............................................................7 (c) Periodic Funding by Lenders; NCCF Settlement Loans.....................................7 (d) Periodic Funding by Lenders; Agent Special Loans.......................................8 (e) Settlement of Settlement Loans and Agent Special Loans.................................9 2.5 Failure of Lender to Fund......................................................................11 (a)
Permitted Discretion a determination made by Agent, in good faith, in the exercise of reasonable business judgment (from the perspective of a secured, asset-based lender), based upon Agent’s consideration of factors that in the exercise of such reasonable business judgment Agent believes: (a) could be expected to materially and adversely affect the quantity, quality, mix or value of Collateral (including any Applicable Law that may inhibit collection of an Account), the enforceability or priority of Agent’s Liens, or the amount that Agent and Lenders could receive in liquidation of any Collateral; (b) that any collateral report or financial information delivered by any Obligor is incomplete, inaccurate or misleading in any material respect; (c) could materially increase the likelihood of any Insolvency Proceeding involving an Obligor; (d) could increase the credit risk of lending to Borrowers on the security of the Collateral; or (e) could reasonably be expected to result in a Default or Event of Default.
Permitted Discretion. 3 2.3 Requests for Revolving Credit Advances....................................... 3 (a) Credit Requests Executed by the Borrower............................ 3 (b) Requests for Borrowing Deemed Given................................. 4 2.4 Funding of Revolving Credit Advances......................................... 4 (a) Agent Election as to Funding........................................ 4 (b) Same Day Funding by Banks........................................... 4 (c) Periodic Funding by Banks; KCCI Settlement Advances................. 5 (d) Periodic Funding by Banks; Agent Special Advances................... 6 (e) Settlement of Settlement Advances and Agent Special Advances.....
Permitted Discretion a determination made in the exercise of reasonable (from the perspective of a secured lender) business judgment. Permitted Holders: ▇▇▇▇▇▇▇▇▇▇▇ Equity Partners, LLC, JCP United Maritime Holding LLC, AMCIC Maritime AIV, LLC and First Reserve Fund XI, L.P. and their respective Affiliates.