Qualified Accounts definition
Qualified Accounts means Accounts which are and at all times continue to be acceptable to the Bank in its sole discretion. Standards of acceptability include but are not limited to the following conditions:
Qualified Accounts means, with respect to any Borrower or Canadian Credit Party, all Accounts that are directly created by such Borrower or Canadian Credit Party in the ordinary course of business arising out of the sale of goods or rendition of services by such Borrower or Canadian Credit Party and for which an invoice has been sent to the applicable Account Debtor; provided that, except during a period of 90 days after a business acquisition with respect to Accounts acquired in such business acquisition that, taken together with Qualified Inventory acquired in such business acquisition, do not exceed 10% of the applicable Borrowing Base immediately prior to such business acquisition, no Accounts acquired in connection with a business acquisition shall be considered for inclusion as Qualified Accounts until the Acquired Accounts Eligibility Requirement with respect to such Accounts shall have been satisfied.
Qualified Accounts means an account receivable, net of any prepayments, progress payments, deposits and retention, owing to Borrower which meets the following specifications at the time it came into existence and continues to meet such specifications until it is collected in full:
Examples of Qualified Accounts in a sentence
All Accounts, whether Qualified Accounts or not, shall be subject to the Lenders’ prior security interest.
More Definitions of Qualified Accounts
Qualified Accounts means all Bank Accounts of Loan Parties that are either (i) in the name of the Administrative Agent or (ii) subject to an account Control Agreement in favor of the Administrative Agent; provided that the applicable depositary (if not the Administrative Agent) shall provide daily reports to the Administrative Agent setting forth the balances in such accounts (which reports may relate to the previous Business Day); provided further that, in each case, such Qualified Account is not subject to any other Lien other than Liens permitted by Section 6.02, and such Liens do not have priority over, and are junior to, the Lien of the Administrative Agent (other than (i) inchoate or other Liens (including tax Liens) arising by operation of law or (ii) Permitted Encumbrances under clause (h)(i) of the definition thereof). To the extent any cash or cash equivalents have been withdrawn from any Qualified Account, then, prior to or concurrently with either (A) a Borrowing hereunder or (B) the consummation of a transaction hereunder which requires satisfaction of the Payment Conditions, in each case subsequent to such withdrawal, then either (1) the Borrower shall deliver an updated Borrowing Base Certificate (which updated Borrowing Base Certificate shall be updated only for the withdrawal of such cash or cash equivalents and which shall supersede any previously delivered Borrowing Base Certificate for the applicable period) within one (1) Business Day or (2) the Borrower may notify the Administrative Agent of such withdrawal and in lieu of delivering the updated Borrowing Base Certificate referred to in the foregoing clause (1), the Administrative Agent shall take a Reserve in the amount of such withdrawal under the Borrowing Base; provided that such Reserve shall no longer be in effect upon the delivery of an updated Borrowing Base Certificate reflecting such withdrawal.
Qualified Accounts means receivables under contracts which upon performance by the applicable Co-Borrower will become Eligible Accounts of such Co-Borrower.
Qualified Accounts means any investment account of the Borrowers and the Guarantors maintained with the Agent and subject to the Agent’s first-priority Lien and a control agreement in favor of the Agent.
Qualified Accounts as defined in Section 1.1(c)
Qualified Accounts means Accounts which are and at all times continue to meet the following conditions:
Qualified Accounts means any Accounts which the Agent in its sole discretion reasonably exercised determines to have met all of the minimum requirements set forth on Schedule 1.1(Q)(i).
Qualified Accounts means an account owing to ETC (a) which arose out of the performance of services by ETC, or from a bona-fide sale or lease of goods which have been delivered or shipped to the account debtor and for which ETC has genuine invoices, shipping documents or receipts; (b) which is not more than 90 days past due the original date of the relevant invoice and which original due date is not more than 30 days after the earlier of delivery of goods, performance of services, date of billing or date of such invoice; (c) which is owned by ETC free and clear of all encumbrances and security interests, except the first priority, validly perfected security interest of the Bank; (d) which is enforceable against the account debtor without setoff, credit, allowance or discount, except discount for prompt payment, for the amounts shown on certificates furnished by ETC to the Bank; (e) which, together with the transactions out of which it arose, complies with all applicable laws and regulations; (f) as to which ETC has no knowledge of anything which might cause the account debtor to be unable to pay the account; (g) as to which the account debtor has not disputed his liability or returned or threatened to return the goods; (h) the existence and amount of which have been certified to the Bank by ETC in the manner specified in Section 5.16; (i) by an account debt which is not more than 120 days past due in the payment of any other amount owed ETC; (j) by an account debtor other than an Affiliate and who is located in the United States; and (k) as to which the Bank has not notified ETC that the account or account debtor is unsatisfactory. Any Qualified Account which ceases to meet any of the foregoing requirements shall cease to be a Qualified Account at such time.