Eligible Accounts Receivables means Accounts arising from the sale of a Borrower’s Inventory (other than those consisting of Credit Card Receivables) or the rendition of services that satisfies the following criteria at the time of creation and continues to meet the same at the time of such determination: such Account (i) has been earned by full performance and represents the bona fide amounts due to a Borrower from an account debtor, and in each case originated in the ordinary course of business of such Borrower, and (ii) is not ineligible for inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (r) below. Without limiting the foregoing, to qualify as an Eligible Accounts Receivable, an Account shall indicate no Person other than a Borrower as payee or remittance party. In determining the amount to be so included, the face amount of an Account shall be reduced by, without duplication, to the extent not reflected in such face amount, (i) the amount of all accrued and actual discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance charges or other allowances (including any amount that a Borrower may be obligated to rebate to a customer pursuant to the terms of any written agreement or understanding), and (ii) the aggregate amount of all cash received in respect of such Account but not yet applied by the Borrowers to reduce the amount of such Eligible Account Receivable. Any Accounts meeting the foregoing criteria shall be deemed Eligible Accounts Receivables but only as long as such Account is not included within any of the following categories, in which case such Account shall not constitute an Eligible Account Receivable:
Eligible Accounts Receivables as of any date means the book value of all accounts receivables of the Company and its Subsidiaries that would be shown on a Consolidated balance sheet of the Company and its Subsidiaries prepared on such date in accordance with GAAP, which are not more than 180 days past their due date and were entered into on normal payment terms.
Eligible Accounts Receivables means, on any date, all Receivables denominated in Dollars payable by Eligible Account Obligors except: (i) billed Receivables that have not been paid by the date 30 days after the respective due dates therefor; (ii) any Receivable subject to any asserted defense, dispute, claim, offset or counterclaim, provided that, if any such defense, dispute, claim, offset or counterclaim is asserted with respect to such Receivable in an amount equal to a sum certain, then such Receivable shall be an Eligible Receivable to the extent the face amount thereof exceeds such sum certain; (iii) all such Receivables subject to any repurchase or return arrangement; (iv) Receivables of each Eligible Account Obligor to the extent that the Receivables of such Eligible Account Obligor exceed 10% of all Receivables; and (v) all Receivables that are payable by their terms more than 30 days from the respective invoice dates therefor.
Examples of Eligible Accounts Receivables in a sentence
Agent may rely, in determining which Accounts are Eligible Accounts Receivables, on all statements and representations made by Borrowers with respect thereto.
Additionally, the Agent may establish such reserves against the Eligible Accounts Receivables and Eligible Unbilled Receivables from time to time as determined by the Agent (in a commercially reasonable manner), in each case without in any way impairing the rights of the Lenders and the Agent in and to the same under the Security Agreements.
As part of the First Amendment, the Company entered into a line of credit of up to the lesser of (i) £7.5 million and (ii) the equivalent of 80% of Eligible Accounts Receivables, as defined, plus £2.5 million (the Revolving Line).
Notwithstanding the foregoing, in no event will the Borrower or any of its Subsidiaries incur, create or permit to exist any Lien on its Inventory or Eligible Accounts Receivables other than (A) Liens created by statute (or Liens filed without the consent of the Borrower or such Subsidiary that are being contested in good faith), (B) Liens that are unperfected and inconsequential and held by vendors of the Borrower and its Subsidiaries in the ordinary course of business and (C) Liens listed on Schedule IV.
Permit the Borrower's ratio of (i) the sum of cash, Eligible Accounts Receivables and inventory and (ii) the sum of the outstanding balance of the Note and any outstanding Senior Indebtedness, to be less than 2.0 to 1.0.
More Definitions of Eligible Accounts Receivables
Eligible Accounts Receivables shall be defined as accounts receivable less than or equal to ninety (90) days old, net of allowances for doubtful accounts and net of advances on contracts.
Eligible Accounts Receivables means and include, each Account Receivable of a Borrowing Base Party arising in the ordinary course of business, excluding any such Account Receivable which is disqualified pursuant to any of the following criteria, as determined by Administrative Agent in its Permitted Discretion (which such determination shall be conclusive for all purposes under the Loan Documents):
Eligible Accounts Receivables shall consist solely of trade accounts created in the ordinary course of business, upon which Borrower’s or its Subsidiaries’ respective right to receive payment is absolute and not contingent upon the fulfillment of any condition whatsoever, and in which Bank has a perfected and undisputed security interest of first priority, but in any event, and shall specifically not include any of the following:
Eligible Accounts Receivables at any time shall mean the sum of the Eligible Billed Receivables and the Eligible Unbilled Receivables at such time. The "Net Value" of Eligible Accounts Receivables at any time shall mean the aggregate face amount of all Eligible Billed Receivables and Eligible Unbilled Receivables at such time.
Eligible Accounts Receivables means, collectively, Eligible Billed Government Accounts Receivable, Eligible Billed Commercial Accounts Receivable and Eligible Unbilled Government Costs.
Eligible Accounts Receivables means, as of any date of determination thereof, the current portions of all Receivables of the Borrowers or any of their respective Subsidiaries that arise out of the sale of any goods and the providing of services in connection with the Business (other than Receivables arising out of the sale of Magazine Subscriptions), as to which the Agent for the benefit of the Lenders holds a first priority perfected security interest,
Eligible Accounts Receivables mean at any time, all of Borrower’s Accounts which contain selling terms and conditions acceptable to Lender. The net amount of any Eligible Account against which Borrower may borrow shall exclude all returns, discounts, credits, and offsets of any nature. Unless otherwise agreed to by Lender in writing, Eligible Accounts Receivables do not include:
(a) Accounts aged in excess of 90 days from invoice date,
(b) Accounts to an individual,
(c) Accounts balances with concentration in excess of 35%,
(d) Accounts with an account debt when more than 25% of the total account balance is aged more than 90 days from invoice date,
(e) Accounts in which the Account Debtor is an Affiliate of Borrower,
(f) Contra accounts, and
(g) Net Credit Balances in the over 90-day past due category.