Receivables Corporation Clause Samples
The 'Receivables Corporation' clause defines the role and identity of a special-purpose entity established to purchase, hold, or finance receivables from an originator or seller. In practice, this clause typically outlines the corporation's legal structure, its relationship to the parties involved, and the scope of its activities, such as acquiring accounts receivable or other payment obligations. By clearly designating the Receivables Corporation and its functions, the clause ensures legal separation between the originator and the entity holding the receivables, which is essential for risk isolation and facilitating securitization or financing transactions.
Receivables Corporation. The Borrower will not at any time permit any Receivables Corporation (a) to own or hold any assets, or conduct any operations, other than those reasonably necessary to comply with the terms of a permitted Receivables Facility that is described in subpart (i) of the proviso to such definition and to which such Receivables Corporation is a party, or (b) to incur, assume or suffer to exist any Indebtedness other than (x) Indebtedness under a permitted Receivables Facility described in subpart (i) of the proviso to such definition with aggregate principal outstandings at no time exceeding the maximum amounts set forth in such definition and (y) subordinated Indebtedness owing to the Borrower or any Subsidiary as part of the consideration for transfers of assets to the Receivables Corporation.
Receivables Corporation. The Borrower will not at any time permit any Receivables Corporation (a) to own or hold any assets, or conduct any operations, other than those reasonably necessary to comply with the terms of a permitted Receivables Facility that is described in subpart (a) of such definition and to which such Receivables Corporation is a party, or (b) to incur, assume or suffer to exist any Indebtedness other than Indebtedness under a permitted Receivables Facility described in subpart (a) of such definition with aggregate outstandings at no time exceeding the maximum amounts set forth in such definition.