Without limiting the obligation of Borrowers. to deliver any other information to Lender, Borrowers shall promptly report to Lender any return of Inventory by any one account debtor if the Inventory so returned in such case has a value in excess of $75,000. At any time that Inventory is returned, reclaimed or repossessed, the Account (or portion thereof) which arose from the sale of such returned, reclaimed or repossessed Inventory shall not be deemed an Eligible Account. In the event any account debtor returns Inventory when an Event of Default exists or has occurred and is continuing, Borrowers shall, upon Lender's request, (i) hold the returned Inventory in trust for Lender, (ii) segregate all returned Inventory from all of its other property, (iii) dispose of the returned Inventory solely according to Lender's instructions, and (iv) not issue any credits, discounts or allowances with respect thereto without Lender's prior written consent.
Appears in 1 contract
Samples: Loan and Security Agreement (Play by Play Toys & Novelties Inc)
Without limiting the obligation of Borrowers. to deliver any other information to Lender, Borrowers shall promptly report include in its collateral reporting to Lender pursuant to Section 7.1 hereof, any return returns of Inventory by any one account debtor if the Inventory so returned in such case has a value in excess of $75,000debtors. At any time that Inventory is returned, reclaimed or repossessed, the Account (or portion thereof) which arose from the sale of such returned, reclaimed or repossessed Inventory shall not be deemed an Eligible Account. In the event any account debtor returns Inventory when an Event of Default exists or has occurred and is continuing, Borrowers each Borrower shall, upon Lender's request, (i) hold the returned Inventory in trust for Lender, (ii) segregate all returned Inventory from all of its other property, (iii) dispose of the returned Inventory solely according to Lender's instructions, and (iv) not issue any credits, discounts or allowances with respect thereto without Lender's prior written consent.
Appears in 1 contract
Without limiting the obligation of Borrowers. to deliver any other information to LenderAgent, Borrowers shall promptly report to Lender Agent any return of Inventory by any one account debtor if the Inventory so returned in such case has a value in excess of $75,000250,000. At any time that Inventory is returned, reclaimed or repossessed, the Account (or portion thereof) which arose from the sale of such returned, reclaimed or repossessed Inventory shall not be deemed an Eligible Account. In the event any account debtor returns Inventory when an Event of Default exists or has occurred and is continuing, Borrowers shall, upon Lender's Agent’s request, (i) hold the returned Inventory in trust for LenderAgent and Lenders, (ii) segregate all returned Inventory from all of its other property, (iii) dispose of the returned Inventory solely according to Lender's instructionsAgent’s instructions in good faith, and (iv) not issue any credits, discounts or allowances with respect thereto without Lender's Agent’s prior written consent.
Appears in 1 contract
Samples: Loan and Security Agreement (Bell Microproducts Inc)
Without limiting the obligation of Borrowers. to deliver any other information to LenderAgent, Borrowers shall promptly report to Lender Agent any return of Inventory by any one account debtor if the Inventory so returned in such case has a value in excess of $75,0001,000,000. At any time that Inventory is returned, reclaimed or repossessed, the Account (or portion thereof) which arose from the sale of such returned, reclaimed or repossessed Inventory shall not be deemed an Eligible Account. In the event any account debtor returns Inventory when an Event of Default exists or has occurred and is continuing, Borrowers shall, upon LenderAgent's request, (i) hold the returned Inventory in trust for LenderAgent and Lenders, (ii) segregate all returned Inventory from all of its other property, (iii) dispose of the returned Inventory solely according to LenderAgent's instructions, and (iv) not issue any credits, discounts or allowances with respect thereto without LenderAgent's prior written consent.
Appears in 1 contract
Samples: Loan and Security Agreement (Pep Boys Manny Moe & Jack)
Without limiting the obligation of Borrowers. to deliver any other information to Lender, Borrowers shall promptly report to Lender any return of Inventory by any one account debtor if the Inventory inventory so returned in such case has a value in excess of $75,00010,000. At any time that Inventory is returned, reclaimed or repossessed, the Account (or portion thereof) which arose from the sale of such returned, reclaimed or repossessed Inventory shall not be deemed an Eligible Account. In the event any account debtor returns Inventory when an Event of Default exists or has occurred and is continuing, Borrowers shall, upon Lender's request, (i) hold the returned Inventory in trust for Lender, (ii) segregate all returned Inventory from all of its other property, (iii) dispose of the returned Inventory solely according to Lender's instructions, and (iv) not issue any credits, discounts or allowances with respect thereto without Lender's prior written consent.
Appears in 1 contract
Samples: Loan and Security Agreement (Nutritional Sourcing Corp)