Released Receivables Clause Samples
The 'Released Receivables' clause defines which receivables are no longer subject to claims, liens, or security interests by a party, typically following payment or satisfaction of certain conditions. In practice, this clause specifies that once a receivable has been paid in full or otherwise settled, the party holding a security interest must release any rights or claims over that receivable, ensuring it is free from encumbrances. This mechanism is essential for clarifying ownership and ensuring that parties can freely use or transfer receivables that have been released, thereby preventing disputes and facilitating smooth financial transactions.
Released Receivables. As of any date of determination, the aggregate Unpaid Balance of Receivables identified by Arrow and released by the Administrative Agent pursuant to clause (b) of the definition of “Receivable” during the related Determination Period (as defined below) shall not exceed an amount equal to 10.0% of the average daily aggregate Unpaid Balance of all Receivables during such related Determination Period; provided, that no Receivables shall be identified or released pursuant to clause (b) of the definition of “Receivable” if the credit quality of all Arrow ECS Receivables, taken as a whole, after giving effect to such release shall be materially inferior to the credit quality of all Arrow ECS Receivables, taken as a whole, immediately prior to such release. Determination Period means, with respect to any date of determination, (i) during the first twelve (12) calendar months following the Amendment No. 26 Effective Date, the period beginning on the Amendment No. 26 Effective Date and ending on such date of determination and (ii) thereafter, the immediately trailing twelve (12) calendar months.