Eligible Parts Inventory definition

Eligible Parts Inventory means the net book value of all parts and accessories inventory of any of the Loan Parties on which the Administrative Agent holds a perfected, first priority Lien, which inventory meets the eligibility criteria requirements of the Administrative Agent.

Eligible Parts Inventory means, at any time, the parts inventory of a Borrower which the Administrative Agent determines in its Permitted Discretion is eligible as the basis for the extension of Revolving Loans, Swingline Loans and the issuance of Letters of Credit hereunder. Without limiting the Administrative Agent’s discretion provided herein, Eligible Parts Inventory shall not include any Inventory:

Eligible Parts Inventory means and include Parts Inventory valued at book value, which is not, in Agent’s opinion, obsolete, slow moving or unmerchantable and which Agent, in its sole credit judgment exercised in good faith, shall not deem ineligible Parts Inventory, based on such considerations as Agent may from time to time deem appropriate including whether the Inventory is subject to a perfected, first priority security interest in favor of Agent and no other Lien (other than a Permitted Lien). In addition, Parts Inventory shall not be Eligible Parts Inventory if it (i) does not conform to all standards imposed by any Governmental Authority which has regulatory authority over such goods or the use or sale thereof; (ii) is located outside the continental United States or at a location that is not otherwise in compliance with this Agreement; (iii) constitutes Consigned Inventory; (iv) is the subject of an Intellectual Property Claim; (v) is subject to a License Agreement or other agreement that limits, conditions or restricts any Borrower’s or Agent’s right to sell or otherwise dispose of such Parts Inventory, unless Agent is a party to a Licensor/Agent Agreement with the Licensor under such License Agreement; or (vi) or is situated at a location not owned by any Borrower unless the owner or occupier of such location has executed in favor of Agent a Lien Waiver Agreement (or Agent establishes a Reserve against the Formula Amount with respect thereto as Agent shall deem appropriate in its sole discretion).

Examples of Eligible Parts Inventory in a sentence

• The Administrative Agent alone shall be authorized to determine whether any Parts Inventory constitute Eligible Parts Inventory, whether to impose or release any reserve or whether any conditions to funding or to issuance of a Letter of Credit have been satisfied in accordance with the terms of the Loan Documents, 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.

• In addition Agent reserves the right, at any time and from time to time after the Closing Date, to adjust any of the criteria set forth below, to establish new criteria and to adjust advance rates with respect to Eligible Parts Inventory in its Permitted Discretion, subject to the approval of Supermajority Lenders in the case of adjustments or new criteria or changes in advance rates which have the effect of making more credit available.

• In this regard, Lender agrees to make a revolving line of credit loan (the "LOAN") to Borrower in an amount based upon the Base Value of the Eligible Accounts, Eligible Parts Inventory, Eligible New Equipment Inventory, Eligible Used Equipment Inventory, Eligible Sales Contract Receivables up to the sum of $11,000,000.00.

• Agent shall have the right to establish, modify, or eliminate Reserves against Eligible Parts Inventory from time to time in its reasonable credit judgment exercised in good faith.

• Lender may, in its reasonable credit judgment, from time to time, determine and revise the criteria for Eligible Accounts, Eligible Parts Inventory and Eligible Rental Equipment Inventory.

More Definitions of Eligible Parts Inventory

Eligible Parts Inventory means all Parts owned by Borrower free and clear of all Liens of any third parties, except for the Permitted Liens, that are in good, new and salable condition and that do conform to the representations and warranties of Section 7.22 of this Agreement and that are not Ineligible Parts.

Eligible Parts Inventory means all Eligible Leased Parts Inventory and all Eligible New Parts Inventory.

Eligible Parts Inventory means Inventory of the Borrowers that (a) consists of parts and accessories for boats, motors (including Loose Outboard Motors not included in the Borrowing Base as Eligible New Inventory), and trailers purchased from Approved Manufacturers, (b) is subject to a perfected, first priority Lien in favor of the Collateral Agent for the benefit of the Lenders, free from any Lien other than Permitted Liens, (c) is located at any of the Borrowers' facilities, (d) does not constitute Eligible New Inventory or Used Inventory, and (e) otherwise constitutes collateral reasonably acceptable to the Required Lenders for borrowing purposes.

Eligible Parts Inventory means the dollar value of the parts inventory of the Borrower in which the Bank holds a perfected security interest accounted for at the lower of cost or fair market value computed on a first-in-first-out basis in accordance with GAAP. Without limiting the discretion of the Bank to consider any parts not to be Eligible Parts Inventory, and by way of example only, Eligible Parts Inventory shall not, in any event, include:

Eligible Parts Inventory means all parts inventory owned by Borrower, valued at the lower of cost or market in accordance with generally accepted accounting principles in which Bank has a perfected security interest of first priority, and shall not include:

Eligible Parts Inventory has the meaning specified in the Credit Agreement.

Eligible Parts Inventory means, at any time, all Parts Inventory of Borrower; provided, however, that Eligible Parts Inventory shall not include any Parts Inventory: