Turnover provisions Clause Samples
Turnover provisions are contractual clauses that require a party holding certain funds or assets, typically as a result of enforcement actions or insolvency proceedings, to transfer those assets to another party, often a secured creditor. In practice, these provisions ensure that if a junior creditor or another party receives payments or collateral that should rightfully go to a senior creditor under the terms of an intercreditor agreement, those assets are promptly handed over. The core function of turnover provisions is to maintain the agreed priority of payments among creditors, thereby preventing disputes and ensuring that senior creditors receive the proceeds to which they are entitled.
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Turnover provisions a. The tenderers should submit along with the tender, a certified photo state copy of the last three years Annual Accounts with Audited certificate by Chartered Accountant, Income Tax returns and a copy of current valid income tax clearance certificate (IT CC), otherwise bidder will not be considered for administrative evaluation (in evaluation of Technical bid) and will be declared disqualified in technical evaluation.
b. In case of bidder falls under Section 44AD/44ADA/44AE of Income Tax shall be required to submit turnover certificate verified by Chartered Accountant with his Registration number issued by Institute of Chartered Accountants of India.
c. In case of supplier is an Indian Agent, the firm can submit copies of purchase orders issued in favour of firm (As the payment is made through LC directly to foreign manufacturer and equipment payment does not exist in the book of account of the supplier) in support of its turnover whatever amount is getting short. (iv) There will be relaxation on turnover on case to case basis for Start-up firms registered by Government of India under Start-ups scheme as per orders of Ministry of Commerce, Government of India.
Turnover provisions. Each of the Second Lien Claimholders will agree to hold in trust and promptly turn over to the First Lien Collateral Agent any payments or other distributions received in contravention of the Intercreditor Agreement regardless of their source or form. For the avoidance of doubt, no mandatory or voluntary prepayments of Second Lien Obligations will be permitted prior to the discharge in full in cash of the First Lien Obligations. If, for any reason, a Secured Party does not have a valid and perfected lien (either directly or through any applicable Collateral Agent) on any portion of the Collateral, proceeds on such portion received by the other Secured Parties will be paid over to the extent necessary to reflect the distribution provisions above as if all Secured Parties held such a lien. If any Second Lien Claimholder obtains knowledge of or is notified by the First Lien Collateral Agent that a payment or distribution made to a First Lien Claimholder is rescinded for any reason whatsoever, such Second Lien Claimholder shall promptly pay or remit to the First Lien Collateral Agent any payment or distribution received by it in respect of any Collateral subject to any First Priority Liens securing such First Lien Obligations, and the provisions set forth in the Intercreditor Agreement shall be reinstated as if such payment or distribution had not been made, until the payment and satisfaction in full of the First Lien Obligations.
Turnover provisions. Until the Discharge of all First Lien Debt (except as specifically permitted by Section 2.7 hereof) in the event that any Collateral or proceeds thereof are received by any Second Lien Lender Party in contravention of this Agreement, any such property shall not be commingled with any of the assets of any Second Lien Lender Party, shall be received and held in trust for the benefit of the First Lien Lender Parties and shall be promptly turned over to the First Lien Agent, for the benefit of the First Lien Lender Parties, or delivered in the same form as received, with any necessary endorsements or as a court of competent jurisdiction may otherwise direct, to the extent necessary for there to be a Discharge of all First Lien Debt. In the event that any Second Lien Lender Party fails to provide any endorsement, as contemplated by the immediately preceding sentence, the First Lien Agent, or any of its officers or employees, is hereby irrevocably authorized to make the same (which authorization, being coupled with an interest, is irrevocable). After the Discharge of all First Lien Debt, any remaining proceeds of Collateral shall be delivered to the Second Lien Agent for application to the Second Lien Debt in accordance with the Second Lien Debt Documents, except as otherwise required pursuant to applicable law.
Turnover provisions. (i) The tenderers should submit along with the tender, a photo state copy of the last three years Annual Accounts with Audit certificate by Chartered Accountant, Income Tax returns and a copy of current valid income tax clearance certificate (IT CC),otherwise bidder will not be considered for administrative evaluation (in evaluation of Technical bid) and will be declared disqualified in technical evaluation.
Turnover provisions. Until the occurrence of the Senior Obligations Repayment Date, any Senior Collateral, including without limitation any such Senior Collateral constituting proceeds, that may be received by any Subordinated Creditor contrary to or in violation of this Agreement shall be segregated and held in trust and promptly paid over to the Senior Agent, for the benefit of the Senior Creditors (in accordance with Section 6.1), in the same form as received, with any necessary endorsements, and each Subordinated Creditor hereby authorizes the Senior Agent to make any such endorsements as agent for the Subordinated Lender (which authorization, being coupled with an interest, is irrevocable).
Turnover provisions. (a) In the event that any Credit Party, the Receivables Seller or the Receivables Purchaser now or hereafter obtains possession of any ABL Collateral, it shall reasonably promptly deliver to the ABL Agent (or its designees) such ABL Collateral in the same form as received (and until delivered to the ABL Agent (or its designees), such ABL Collateral shall be held in trust for the benefit of the ABL Secured Parties); provided that, (i) if such ABL Collateral constitutes Collections, so long as no ABL Enforcement Period has commenced, such Credit Party, the Receivables Seller or the Receivables Purchaser, as applicable, shall cause such Collections to be deposited into the Collection Account reasonably promptly following receipt thereof and (ii) subject to clause (i) of this proviso, so long as no ABL Enforcement Period has commenced, such Credit Party, the Receivables Seller or the Receivables Purchaser, as applicable, shall cause such ABL Collateral to be delivered to the Borrower (or its designees) in the same form as received (and until delivered to the ABL Agent (or its designees), such ABL Collateral shall be held in trust for the benefit of the Borrower and the ABL Secured Parties).
(b) In the event that any Credit Party or the ABL Agent now or hereafter obtains possession of any Receivables Assets, it shall reasonably promptly deliver to the Receivables Purchaser (or its designees) such Receivables Assets (and until delivered to the Receivables Purchaser (or its designees), such Receivables Assets shall be held in trust for the benefit of the Receivables Purchaser in the same form as received); provided that, if such Receivables Assets constitute Collections, so long as no HSBC Enforcement Period has commenced, such Credit Party or the ABL Agent, as applicable, shall cause such Collections to be deposited into the Collection Account reasonably promptly following receipt thereof.