Common use of Use of Inventory Clause in Contracts

Use of Inventory. If an Event of Default has occurred and is continuing, Debtor may use its Inventory in any lawful manner not inconsistent with this Security Agreement and with the terms of insurance thereon and may sell, lease or otherwise dispose of its Inventory in the ordinary course of business. Debtor will not and shall not be permitted to use any item of Inventory in a manner inconsistent with the holding thereof for sale, lease or disposition in the ordinary course of business or in contravention of the terms of any agreement. A sale, lease or disposition in the ordinary course of business does not include the exchange of items of Inventory for goods in kind or otherwise or transfers of items of Inventory made in satisfaction of present or future Secured Obligations.

Appears in 3 contracts

Samples: Security Agreement (Doral Energy Corp.), Credit Agreement (Doral Energy Corp.), Security Agreement (Kentucky USA Energy, Inc.)

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Use of Inventory. If an Event Until the occurrence of Default has occurred and is continuingany event of default specified in Section 5.03 hereof, Debtor may use its Inventory inventory in any lawful manner not inconsistent with this Security Agreement and with the terms of insurance thereon and may sell, lease or otherwise dispose of its Inventory inventory in the ordinary course of business. Debtor will not and shall not be permitted to use any item of Inventory inventory in a manner inconsistent with the holding thereof for sale, lease or disposition in the ordinary course of business or in contravention of the terms of any agreement. A sale, lease or disposition in the ordinary course of business does not include the exchange of items of Inventory inventory for goods in kind or otherwise or transfers of items of Inventory inventory made in satisfaction of present or future Secured Obligationsindebtedness.

Appears in 1 contract

Samples: Loan Agreement (Temtex Industries Inc)

Use of Inventory. If Until an Event of Default has occurred and is continuing, Debtor may use its Inventory in any lawful manner not inconsistent with this Security Agreement and with the terms of any insurance thereon and may sell, lease or otherwise dispose of its Inventory in the ordinary course of business. Debtor will not and shall not be permitted to use any item of Inventory in a manner inconsistent with the holding thereof for sale, lease or disposition in the ordinary course of business or in contravention of the terms of any agreement. A sale, lease or disposition in the ordinary course of business does not include the exchange of items of Inventory for goods in kind or otherwise or transfers of items of Inventory made in satisfaction of present or future Secured Obligationsindebtedness.

Appears in 1 contract

Samples: Security Agreement (Lucas Energy, Inc.)

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Use of Inventory. If Until an Event of Default has occurred and is continuing, Debtor may use its Inventory in any lawful manner not inconsistent with this Security Agreement and with the terms of insurance thereon and may sell, lease or otherwise dispose of its Inventory in the ordinary course of business. Debtor will not and shall not be permitted to use any item of Inventory in a manner inconsistent with the holding thereof for sale, lease or disposition in the ordinary course of business or in contravention of the terms of any agreement. A sale, lease or disposition in the ordinary course of business does not include the exchange of items of Inventory for goods in kind or otherwise or transfers of items of Inventory made in satisfaction of present or future Secured Obligations.

Appears in 1 contract

Samples: Security Agreement (Rancher Energy Corp.)

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