Common use of Returned Inventory Clause in Contracts

Returned Inventory. If an Account Debtor returns any Inventory to the Grantor when no Default or Event of Default exists, then the Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. In the event any Account Debtor returns Inventory to the Grantor when a Default or an Event of Default exists, the Grantor, upon the request of the Collateral Agent, shall: (i) hold the returned Inventory in trust for the Collateral Agent; (ii) segregate all returned Inventory from all of its other Property; (iii) dispose of the returned Inventory solely according to the Collateral Agent's written instructions; and (iv) not issue any credits or allowances with respect thereto without the Collateral Agent's prior written consent. All returned Inventory shall be subject to the Collateral Agent's Liens thereon. Whenever any Inventory is returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory.

Returned Inventory. If an Account Debtor returns any Inventory to the such Grantor when no Default or Event of Default exists, then the such Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. Such Grantor shall immediately report to the Collateral Agent any return involving an amount in excess of $100,000 (or such higher amount as may be agreed to by the Collateral Agent in its Permitted Discretion). Each such report shall indicate the purported reasons for the returns and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to the such Grantor when a Default or an Event of Default exists, the such Grantor, upon the reasonable request of the Collateral Agent, shall: (i) hold the returned Inventory in trust for the Collateral Agent; (ii) segregate all returned Inventory from all of its other Propertyproperty; (iii) dispose of the returned Inventory solely according to the Collateral Agent's ’s written instructions; and (iv) not issue any credits or allowances with respect thereto without the Collateral Agent's ’s prior written consent. All returned Inventory shall be subject to the Collateral Agent's ’s Liens thereon. Whenever any Inventory is returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory.

Returned Inventory. If an Account Debtor returns any Inventory with a value of $100,000 or more to the such Grantor when no Default or Event of Default exists, then the such Grantor shall promptly determine the reason for such return and shall issue a credit memorandum report to the Account Debtor in Administrative Agent the appropriate amountreasons for the returns and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to the such Grantor when a Default or an Event of Default exists, the such Grantor, upon the request of the Collateral Administrative Agent, shall: (i) hold the returned Inventory in trust for the Collateral Administrative Agent; (ii) segregate all returned Inventory from all of its other Propertyproperty; (iii) dispose of the returned Inventory solely according to the Collateral Administrative Agent's ’s written instructions; and (iv) not issue any credits or allowances with respect thereto without the Collateral Administrative Agent's ’s prior written consent. All returned Inventory shall be subject to the Collateral Administrative Agent's ’s Liens thereon. Whenever any Inventory is returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible Inventory.

Returned Inventory. If an Account Debtor returns any Inventory to the such Grantor when no Default or Event of Default exists, then the such Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. Such Grantor shall immediately report to the Agent any return involving an amount in excess of $500,000. Each such report shall indicate the reasons for the returns and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to the such Grantor when a Default or an Event of Default exists, the such Grantor, upon the request of the Collateral Agent, shall: (i) hold the returned Inventory in trust for the Collateral Agent; (ii) segregate all returned Inventory from all of its other Propertyproperty; (iii) dispose of the returned Inventory solely according to the Collateral Agent's written instructions; and (iv) not issue any credits or allowances with respect thereto without the Collateral Agent's prior written consent. All returned Inventory shall be subject to the Collateral Agent's Liens thereon. Whenever any Inventory is returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible Inventory.

Returned Inventory. If an Account Debtor returns any Inventory in excess of $25,000 in any one lot and $50,000 in the aggregate in any one fiscal year to the such Grantor when no Default or Event of Default exists, then the such Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. In the event any Account Debtor returns Inventory in excess of $50,000 to the such Grantor when a Default or an Event of Default exists, the such Grantor, upon the request of the Collateral AgentLender, shall: (i) hold the returned Inventory in trust for the Collateral AgentLender; (ii) segregate all returned Inventory from all of its other Propertyproperty; (iii) dispose of the returned Inventory solely according to the Collateral Agent's Lender’s reasonable written instructions; and (iv) not issue any credits or allowances with respect thereto without the Collateral Agent's Lender’s prior written consent. All returned Inventory shall be subject to the Collateral Agent's Lender’s Liens thereon. Whenever any Inventory is returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory.

Returned Inventory. If an Account Debtor returns any Inventory to the such Grantor when no Default or Event of Default exists, then the such Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to promptly report each such event or circumstance on the Account Debtor Borrowing Base Certificates submitted by it in the appropriate amountmanner required with respect to such Borrowing Base Certificate. In the event any Account Debtor returns Inventory to the such Grantor when a Default or an Event of Default exists, the such Grantor, upon the request of the Collateral Administrative Agent, shall: (i) hold the returned Inventory in trust for the Collateral Administrative Agent; (ii) segregate all returned Inventory from all of its other Propertyproperty; (iii) dispose of the returned Inventory solely according to the Collateral Administrative Agent's ’s written instructions; and (iv) not issue any credits or allowances with respect thereto without the Collateral Administrative Agent's ’s prior written consent. All returned Inventory shall be subject to the Collateral Administrative Agent's ’s Liens thereon. Whenever any Inventory is returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible Inventory.