Asset-Based Financing Definitions

Example Definitions of "Asset-Based Financing Definitions"
Asset-Based Financing Definitions. For the purposes of this Agreement, the following terms will have the following meanings. (1) Account Debtors. Account Debtors are persons who are obligated on the Accounts Receivable. (2) Account Guarantors. Account Guarantors are persons who have guarantied certain Accounts Receivable. (3) Accounts Receivable. Accounts Receivable will include all of the following. (a) Accounts and Other Rights to Payment. All rights I have now or in the future to payments including, but not limited to,... payment for goods and other property sold or leased or for services rendered, whether or not I have earned such payment by performance. This includes any rights and interests (including all guaranties, standby letters of credit, liens and security interests) which I may have by law or agreement against any Account Debtor. (b) General Intangibles. All general intangibles including, but not limited to, tax refunds, applications for patents, patents, copyrights, trademarks, trade secrets, good will, trade names, customer lists, permits and franchises, and the right to use my name. (c) Proceeds. All proceeds from the disposition or collection of Accounts Receivable. (4) Eligible Accounts Receivable. Eligible Accounts Receivable include all of my Accounts Receivable that are and continue to be acceptable to you in all respects. Criteria for eligibility may be revised by you at any time. Eligible Accounts Receivable exclude all of the following Accounts Receivable: the entire balance of any Accounts Receivable that has been due and owing for more than 90 days from the invoice dates; all of the remaining Accounts Receivable owed by an Account Debtor when this Account Debtor is overdue on one account; and those which you in your sole discretion disqualify as an Eligible Account. (5) Inventory. Inventory includes all inventory which I hold for ultimate sale or lease, or which has been or will be supplied under contracts of service, or which are raw materials, work in process, or materials used or consumed in my business. (6) Eligible Inventory. Eligible Inventory includes all of my Inventory that is and continues to be acceptable to you in all respects. Criteria for eligibility may be revised by you at any time. Eligible Inventory excludes all Inventory that I do not own or that is subject to a competing claim, lien or encumbrance or that which you in your sole discretion disqualify as Eligible Inventory. (7) Value of Eligible Inventory. The Value of Eligible Inventory is the lower of the Eligible Inventory's cost or fair market value as determined by consistently applied generally accepted accounting principles under the and any additional written valuation guidelines you provide me. (8) Overadvance. An Overadvance is made when advances exceed the maximum outstanding Principal balance. View More
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