Eligible Domestic Receivables means, with respect to each U.S. Loan Party, each of its Receivables arising in the ordinary course of business that are evidenced by an invoice or other documentary evidence (to include unbilled receivables to the extent such unbilled receivables are to be billed in the next billing cycle), provided that no such Receivable shall be an “Eligible Domestic Receivable” if:
Eligible Domestic Receivables means and include with respect to each Borrower, each Receivable, other than Eligible Foreign Receivables, of such Borrower arising in the Ordinary Course of Business and which Agent, in its sole credit judgment, shall deem to be an Eligible Domestic Receivable, based on such considerations as Agent may from time to time deem appropriate. A Receivable shall not be deemed eligible unless such Receivable is subject to Agent’s first priority perfected security interest and no other Lien (other than Permitted Encumbrances), and is evidenced by an invoice or other documentary evidence satisfactory to Agent. In addition, no Receivable shall be an Eligible Domestic Receivable if:
Eligible Domestic Receivables means, with respect to each U.S. Loan Party, each of its Receivables arising in the ordinary course of business that are evidenced by an invoice or other documentary evidence (to include unbilled receivables to the extent such unbilled receivables are to be billed in the next billing cycle) and subject to the U.S. Secured Parties’ perfected Lien with the priority required by the U.S. Security Documents, provided that no such Receivable shall be an “Eligible Domestic Receivable” if:
Examples of Eligible Domestic Receivables in a sentence
As used in this Agreement, the term "Borrowing Base" means at any time, an amount equal to the aggregate of (a) eighty-five percent (85%) of the amount of Eligible Domestic Receivables, plus (b) the lesser of (i) sixty- five percent (65%) of the amount of Eligible Domestic Inventory or (ii) Twenty-five Million Dollars ($25,000,000(Borrowing Base).
Generally, the obligations of the Company under the Domestic Revolving Credit Facility are secured by a first-priority security interest in the Eligible Domestic Receivables, cash proceeds and bank accounts of the Company and certain of the Company’s U.S. subsidiaries, and a second-priority security interest in substantially all other assets of the Company and such subsidiaries.
All material portions of the Accounts included in the Borrowing Base and the UK Borrowing Base conform to the eligibility criteria set forth in the definition of Eligible Domestic Receivables and Eligible UK Receivables, as applicable.
The “U.S. Revolving Borrowing Base” shall be equal, as at any date, to 85% of the difference between (x) the aggregate amount of Eligible Domestic Receivables at such date as set forth on the Accounts Report attached to the most recently delivered U.S. Revolving Borrowing Base Certificate pursuant to Section 6.1(f), and (y) the Dilution Reserve.
The Borrowing Base shall be reduced by all amounts credited to the Collateral Account (if and to the extent a Collateral Account is required by the terms of this Agreement) since the date of the most recent Borrowing Base Report and by the amount of any Account or any Inventory which was included in the Borrowing Base, but which the Agent determines fails to meet the respective criteria applicable from time to time for Eligible Domestic Receivables or Eligible Domestic Inventory.
More Definitions of Eligible Domestic Receivables
Eligible Domestic Receivables means Receivables arising in the ordinary course of Borrower's business from the sale of goods or rendition of services, which Agent, in its Permitted Discretion, shall deem eligible based on such considerations as Agent may from time to time deem appropriate. Without limiting the foregoing, a Receivable shall not be deemed to be an Eligible Domestic Receivable if (i) the account debtor has failed to pay the Receivable within a period of SIXTY (60) days after due date or failed to pay the Receivable within ONE HUNDRED TWENTY (120) days after invoice date (or in the case of Receivables for Borrower's Country Air air freshener or candle line products, ONE HUNDRED FIFTY (150) days after invoice date), to the extent of any amount remaining unpaid after such periods; (ii) the account debtor has failed to pay more than 50% of all outstanding Receivables owed by it to Borrower within ONE HUNDRED TWENTY (120) days after invoice date; (iii) the account debtor is an Affiliate of Borrower (except as otherwise permitted by Agent in writing); (iv) the goods relating thereto are placed on consignment, guaranteed sale, "xxxx and hold," "COD" or other terms pursuant to which payment by the account debtor may be conditional; (v) the account debtor is not located in the United States, Puerto Rico or Ontario, Canada, unless the Receivable is supported by a letter of credit or other form of guaranty, security or credit insurance (to the extent Agent in writing approves the underlying policy of credit insurance) in each case in form and substance reasonably satisfactory to Agent; (vi) the account debtor is the United States or any department, agency or instrumentality thereof or any State, city or municipality of the United States, except to the extent that the requirements of Section 6.1.12 have been satisfied; (vii) Borrower is or may become liable to the account debtor for goods sold or services rendered by the account debtor to Borrower (up to the amount that Borrower is liable to the account debtor); (viii) the account debtor's total obligations to Borrower exceed 15% of all Eligible Receivables (or in the case of each of Wal-Mart, K-Mart and Walgreens, 20% of all Eligible Receivables), to the extent of such excess; (ix) the account debtor disputes liability or makes any claim with respect thereto (up to the amount of such liability or claim), or is subject to any insolvency or bankruptcy proceeding, or becomes insolvent, fails or goes out of a material portion of its bus...
Eligible Domestic Receivables means, at any date of determination thereof, the aggregate amount of all Receivables due at such date from an account debtor that is both domiciled in the United States of America and (if not a natural person) organized under the laws of the United States of America or any political subdivision thereof, to the Company or a Subsidiary of the Company, other than the following (determined without duplication):
Eligible Domestic Receivables means and include, each Receivable of a US Borrower arising in the Ordinary Course of Business and which Agent, in its sole credit judgment, shall deem to be an Eligible Domestic Receivable, based on such considerations as Agent may from time to time deem appropriate. A Receivable shall not be deemed eligible unless such Receivable is subject to Agent’s first priority perfected security interest and no other Lien (other than Permitted Encumbrances), and is evidenced by an invoice or other documentary evidence satisfactory to Agent. In addition, no Receivable shall be an Eligible Domestic Receivable if:
Eligible Domestic Receivables means, as of any date of determination and without duplication, the aggregate book value of Eligible Receivables owned by or owing to the Parent or its Domestic Subsidiaries, but excluding in any event (i) any Receivable which is not subject to a perfected, first priority Lien in favor of the Administrative Agent to secure the Credit Party Obligations, (ii) Receivables evidenced by notes, chattel paper or other instruments, unless such notes, chattel paper or instruments have been delivered to and are in the possession of the Administrative Agent, and (iii) Receivables owing by an account debtor located outside of the United States or Canada (unless payment for the goods shipped is secured by an irrevocable letter of credit in a form and from an institution acceptable to the Administrative Agent).
Eligible Domestic Receivables means at any time, the aggregate of the Borrower's and its Subsidiaries' Accounts due from account debtors whose principal place of business is in the United States of America, excluding, however (a) all Accounts in respect of which full payment has not been received within sixty (60) days of the due date; (b) all Accounts as to which the goods, merchandise or other personal property or the rendition of services has not been
Eligible Domestic Receivables means all of Makers' accounts, excluding (1) those over 90 days past invoice date and (2) foreign accounts. "ELIGIBLE DOMESTIC FINISHED GOODS INVENTORY" means all inventory of the Makers excluding (i) work in process; (ii) slow moving inventory; and (iii) foreign inventory. The amount available for working capital advances shall be further reduced by the aggregate outstanding amount of Makers' foreign exchange exposures and letters of credit.
Eligible Domestic Receivables means the gross outstanding balance of the Accounts of any Borrower arising out of the sale of merchandise, goods or services in the ordinary course of business, that is made by such Borrower to a Person that is not an Affiliate of such Borrower and that constitutes Collateral in which the Administrative Agent has a fully perfected first priority Lien; provided, however, that an Account shall not be an "Eligible Domestic Receivable" if any of the following shall be true: