Credit Judgment means the Administrative Agent’s commercially reasonable judgment exercised in good faith, based upon its consideration of any factor that it reasonably believes (i) could materially adversely affect the quantity, quality, mix or value of Collateral (including any applicable Laws that may inhibit collection of an Account), the enforceability or priority of the Administrative Agent’s Liens, or the amount that the Administrative Agent and the Lenders could receive in liquidation of any Collateral; (ii) that any collateral report or financial information delivered by any Loan Party is incomplete, inaccurate or misleading in any material respect; (iii) materially increases the likelihood of any Insolvency Proceeding involving a Loan Party; or (iv) creates or could result in an Event of Default. In exercising such judgment, the Administrative Agent may consider any factors that could materially increase the credit risk of lending to the Borrowers on the security of the Collateral.
Credit Judgment means, with reference to the Administrative Agent, a determination made in good faith using reasonable business judgment (from the perspective of a secured, asset-based lender).
Credit Judgment means the Administrative Agent’s credit judgment exercised in good faith, based upon its consideration of any factor that it believes (a) could adversely affect the quantity, quality, mix or value of Collateral (including any Requirement of Law that may inhibit collection of an Account), the enforceability or priority of Collateral Agent’s Liens, or the amount that Agents and Lenders could receive in liquidation of any Collateral; (b) suggests that any collateral report or financial information delivered by any Loan Party is incomplete, inaccurate or misleading in any material respect; (c) materially increases the likelihood of any proceeding under Debtor Relief Law involving a Loan Party; or (d) creates or could result in a Default or Event of Default. In exercising such judgment with respect to (a) through (d) hereof, Administrative Agent may consider any factors that could increase the credit risk of lending to Borrowers on the security of the Collateral (other than such factors that are attributable to general economic conditions).
Examples of Credit Judgment in a sentence
The Administrative Agent alone shall be authorized by each Lender to determine whether any Accounts constitute Eligible Accounts, or whether to impose or release any Borrowing Base Reserve, and to exercise its Credit Judgment in connection therewith, which determinations and judgments, if exercised in good faith, shall exonerate the Administrative Agent from liability to any Lender or other Person for any error in judgment.
More Definitions of Credit Judgment
Credit Judgment means, with reference to the Administrative Agent, a determination made in the exercise of its reasonable (from the perspective of a secured asset-based lender) credit judgment and in accordance with its regular business practices and policies in effect from time to time that are generally applicable to asset based credit facilities.
Credit Judgment means the Administrative Agent’s commercially reasonable credit judgment exercised in good faith in accordance with customary business practices for comparable asset-based lending transactions and, as it relates to the establishment or increase of reserves or the adjustment or imposition of eligibility criteria, shall require that (x) such establishment, increase, adjustment or imposition be based on the analysis of facts or events first occurring or first discovered by the Administrative Agent after the Closing Date or that are materially different from facts or events occurring or known to the Administrative Agent on the Closing Date, (y) the contributing factors to the imposition or increase of any reserve or adjustment shall not duplicate the exclusionary criteria set forth in the definitions of “Eligible Accounts,” “Eligible Credit Card Receivables,” “Eligible Inventory,” “Eligible Letter of Credit Inventory,” “Eligible In-Transit Inventory” or “Qualified Cash” (and vice versa) and (z) the amount of any such reserve so established or the effect of any adjustment or imposition of exclusionary criteria be a reasonable quantification of the incremental dilution of the Borrowing Base attributable to such contributing factors.
Credit Judgment means the Administrative Agent’s commercially reasonable credit judgment exercised in good faith in accordance with customary business practices for comparable asset-based lending transactions, as to any factor that the Administrative Agent reasonably determines: (a) could reasonably be expected to materially adversely affect the value of Eligible Inventory, Eligible In-Transit Inventory or Eligible Accounts, the enforceability or priority of the Administrative Agent’s Liens thereon, or the amount that the Administrative Agent and the Lenders would be likely to receive (after giving consideration to delays in payment and costs of enforcement) in liquidation of such Eligible Inventory, Eligible In-Transit Inventory or Eligible Accounts; or (b) is evidence that any collateral report or financial information delivered to the Administrative Agent by any Borrower is incomplete, inaccurate or misleading in any material respect.
Credit Judgment means the Administrative Agent’s judgment exercised in good faith, (i) to reflect events, conditions, contingencies or risks in each case, arising or becoming known to the Administrative Agent after the Effective Date which, as reasonably determined by the Administrative Agent in good faith, materially adversely affect, or could have a reasonable likelihood of materially adversely affecting, either (a) the Collateral, its value or the amount that might be received by the Administrative Agent from the sale or other disposition or realization upon such Collateral, or (b) the assets or business of any Loan Party or (c) the security interests and liens and other rights of the Administrative Agent or any Lender in the Collateral (including the enforceability, perfection and priority thereof), (ii) to reflect the Administrative Agent’s good faith belief that any collateral report or financial information furnished by or on behalf of any Loan Party to the Administrative Agent is or may have been incomplete, inaccurate, misleading or not in accordance with the terms hereof, in each case, in any material respect, to the extent thereof, or (iii) in respect of any Default or an Event of Default. The amount of any Borrowing Base Reserve established by the Administrative Agent (x) shall have a reasonable relationship to the event, condition or other matter which is the basis for such Borrowing Base Reserve as determined by the Administrative Agent in good faith and (y) shall not be duplicative of other reserves or eligibility criteria then in effect. The imposition of any new reserves or change in a reserve after the Effective Date shall not be effective until five (5) Business Days after written notice thereof to the Borrowers (unless a Default or Event of Default has occurred and is continuing or the reserve or change in reserve is the result of a Lien that is senior in priority to the Administrative Agent’s Lien that has attached to Collateral included in the Borrowing Base, in which case such reserve or change in reserve shall be effective immediately); provided further that during the period from such notice until such new or changed reserve is effective, (A) the Administrative Agent shall notify the Administrative Borrower of its rationale for imposing such reserve or change in reserve and shall discuss with the Administrative Borrower the possible conditions for withdrawing such imposition, and (B) the aggregate amount of all outstanding Loans and L/C Obligation...
Credit Judgment the Agent’s commercially reasonable credit judgment exercised in good faith in accordance with customary business practices for comparable asset-based lending transactions, as to any factor that the Agent reasonably determines: (a) could reasonably be expected to materially adversely affect the value of Eligible Inventory, Eligible Accounts, Eligible German Inventory or Eligible German Accounts, as the case may be, the enforceability or priority of the Agent’s Liens thereon, or the amount that the Agent and the Lenders would be likely to receive (after giving consideration to delays in payment and costs of enforcement) in liquidation of such Eligible Inventory, Eligible Accounts, Eligible German Inventory or Eligible German Accounts, as the case may be,; or (b) is evidence that any collateral report or financial information delivered to the Agent by any Borrower is incomplete, inaccurate or misleading in any material respect. Cure Action: as defined in Section 9.3.2. Currency Due: as defined in Section 14.2(b).
Credit Judgment means the Administrative Agent’s judgment exercised in good faith and consistent with standard practices of an asset based lender, based upon its consideration of any factor that it believes (a) could adversely affect the quantity, quality, mix or value of Collateral (including any applicable Laws that may inhibit collection of an Account), the enforceability or priority of the Administrative Agent’s Liens, or the amount that the Administrative Agent and Lenders could receive in liquidation of any Collateral; (b) suggests that any collateral report or financial information delivered by the Borrower or any Borrower is incomplete, inaccurate or misleading in any material respect; (c) materially increases the likelihood of any proceeding under any Debtor Relief Law involving a Borrower; or (d) creates or could result in a Default or Event of Default. In exercising such judgment, the Administrative Agent may consider any factors that could increase the credit risk of lending to Borrowers on the security of the Collateral.
Credit Judgment. Agent’s judgment exercised in good faith, based upon its consideration of any factor that it believes (a) could reasonably be expected to adversely affect the quantity, quality, mix or value of Collateral (including any Applicable Law that may inhibit collection of an Account), the enforceability or priority of Agent’s Liens, or the amount that Agent and Lenders could receive in liquidation of any Collateral; (b) provides a reasonable basis to conclude that any collateral report or financial information delivered by any Obligor is incomplete, inaccurate or misleading in any material respect; (c) materially increases the likelihood of any Insolvency Proceeding involving an Obligor; or (d) creates or could reasonably be expected to result in a Default or Event of Default. In exercising such judgment, Agent may consider any factors that could reasonably be expected to increase the credit risk of lending to Borrowers on the security of the Collateral.