Acceptable Inventory. Such of the Borrower's Inventory, at such locations, and of such types, character, qualities and quantities, (net of Inventory Reserves) as the Lender in its sole discretion from time to time determines to be acceptable for borrowing, as to which Inventory, the Lender has a perfected security interest which is prior and superior to all security interests, claims, and Encumbrances.
Acceptable Inventory means inventory which satisfies the following requirements:
(a) The inventory is owned by the Borrower free of any title defects or any liens or interests of others except the security interest in favor of the Bank.
(b) The inventory is located at locations which the Borrower has disclosed to the Bank and which are acceptable to the Bank. If the inventory is covered by a negotiable document of title (such as a warehouse receipt) that document must be delivered to the Bank. Inventory which is in transit is not acceptable.
(c) The inventory is held for sale in the ordinary course of the Borrower's business and is of good and merchantable quality. Display items, work-in-process, parts, raw materials, samples, and packing and shipping materials are not acceptable. Inventory which is obsolete, unsalable, damaged, defective, used, discontinued or slow-moving, or which has been returned by the buyer, is not acceptable.
(d) The inventory is covered by insurance as required in the "Covenants" section of this Agreement.
(e) The inventory has not been manufactured to the specifications of a particular account debtor.
(f) The inventory is not subject to any licensing agreements which would prohibit or restrict in any way the ability of the Bank to sell the inventory to third parties.
(g) The inventory has been produced in compliance with the requirements of the U.S. Fair Labor Standards Act (29 U.S.C. §§201 et seq.), the Employment Standards Act, 2000 (Ontario) and other applicable law.
(h) The inventory is not placed on consignment.
(i) The inventory is otherwise acceptable to the Bank.
Acceptable Inventory means inventory which satisfies the following requirements:
Examples of Acceptable Inventory in a sentence
For the avoidance of doubt, for purposes of any calculations hereunder or otherwise, any new Acceptable Inventory Appraisal shall not take effect until the delivery of the first Borrowing Base Certificate that is delivered immediately after the delivery of such new Acceptable Inventory Appraisal.
In the event the FILO Agent conducts any such Acceptable Inventory Appraisals pursuant to the terms hereof, the Administrative Agent and the Borrowers shall promptly (but in any event within two (2) Business Days of receipt of the results of such appraisal from the FILO Agent) implement the Net Orderly Liquidation Value set forth in such appraisal to the calculation of the Revolving Borrowing Base and the FILO Borrowing Base.
Summit may, in its sole discretion and without any duty to do so, elect from time to time to make advances based upon Acceptable Inventory.
Upon purchase by Summit of an Account for which there has been an underlying advance based upon Acceptable Inventory, the Advance shall be disbursed to Summit to repay the underlying advance based upon Acceptable Inventory and all interest and Fees and Charges owing in connection therewith.
Summit may decline to make advances based upon Acceptable Inventory for any reason or for no reason, without notice, regardless of any course of conduct or past advances based upon Acceptable Inventory by Summit.
More Definitions of Acceptable Inventory
Acceptable Inventory. Such of the Loan Parties Inventory, at such locations, and of such types, character, qualities and quantities, as the Lender in its sole discretion from time to time determines to be acceptable for borrowing, including, without limitation, Acceptable In-Transit Inventory and Acceptable L/C Inventory (but excluding Acceptable Blank Stock Inventory), as to which Inventory, the Lender has a perfected security interest which is prior and superior to all security interests, claims, and all Encumbrances other than Permitted Encumbrances. Without limiting the generality of the foregoing, Acceptable Inventory shall in no event include Inventory that is not salable, non-merchandise categories (such as labels, bags and packaging), Inventory not located in the United States (other than Acceptable In-Transit Inventory and Acceptable L/C Inventory), samples, damaged goods, return-to-vendor merchandise, and packaway Inventory.
Acceptable Inventory means inventory (as defined in the UCC) which:
Acceptable Inventory shall be defined as: Finished goods inventory reported to CAPCO in a format acceptable to CAPCO in accordance with paragraph 12.1 below.
Acceptable Inventory means consumer electronics products held for sale, net of any unearned vendors' discounts (a) in which the Lender has a valid perfected first priority security interest, (b) which are located in an Acceptable Facility and (c) which are subject to no other lien, encumbrance or security interest. Without limiting the foregoing, the following shall not be Acceptable Inventory:
Acceptable Inventory means inventory which satisfies the following requirements:
(a) The inventory is owned by the Borrower free of any title defects or any liens or interests of others except the security interest in favor of the Bank.
(b) The inventory is permanently located at locations which the Borrower has disclosed to the Bank and which are acceptable to the Bank. If the inventory is covered by a negotiable document of title (such as a warehouse receipt) that document must be delivered to the Bank.
(c) The inventory is held for sale or use in the ordinary course of the Borrower's business and is of good and merchantable quality. Inventory which is obsolete, unsalable, damaged, defective, discontinued or slow-moving, or which has been returned by the buyer, is not acceptable. Display items, work-in-process and packing and shipping materials are not acceptable.
(d) The inventory is not placed on consignment.
(e) Inventory which Bank in good faith exercised, in a commercially reasonable manner, deems as Acceptable Inventory.
Acceptable Inventory means the value based on the lower of cost and fair market value (as reasonably determined by the Bank or its agents) of all materials owned by the Borrower for resale or for the production of goods for resale,
Acceptable Inventory means the value, determined by the Bank from its review of the most recent financial statements and inventory declaration provided by the Borrower, based on the lower of cost and fair market value of all product owned by the Borrower or the Guarantor in Canada and the United States, goods in transit, packaging and goods, for resale or for production of goods for resale, excluding supplies, and over which the Bank holds a first hypothec, mortgage, first ranking transfer or first security interest, subject only to Priority Claims.