Eligible Accounts

Example Definitions of "Eligible Accounts"
Eligible Accounts. Accounts owed by an Account Debtor (or an Affiliate of such Account Debtor), regardless of whether otherwise eligible, to the extent that the balance of such Accounts exceeds the percentage of the aggregate amount of all Accounts indicated in the table below opposite the applicable Account Debtor; and Accounts owned by any two Account Debtors (or Affiliates of such Account Debtors), regardless of whether otherwise eligible, to the extent that the combined balance of such Accounts exceeds 80% of... the aggregate amount of all Accounts View More
Eligible Accounts. Accounts owed by an Account Debtor (or an Affiliate of such Account Debtor), regardless of whether otherwise eligible, to the extent that the balance of such Accounts exceeds the percentage of the aggregate amount of all Accounts indicated in the table below opposite the applicable Account Debtor; and Accounts owned by any two Account Debtors (or Affiliates of such Account Debtors), regardless of whether otherwise eligible, to the extent that the combined balance of such Accounts exceeds 80% 60% of the aggregate amount of all Accounts Accounts: Account Debtor or Affiliate of Such Account Debtor Concentration Limit Dell Computer Corporation (excluding Dell Computer-Ireland) 40% Kingston Technology 40% Hon Hai Precision Industry Co. 30% Hewlett Packard 30% All others 15% View More
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Eligible Accounts. Are not evidenced by chattel paper or any instrument of any kind.
Eligible Accounts. At any time, all of the Borrower's and CRG's Accounts. The net amount of any Eligible Account against which the Borrower may borrow shall exclude all returns, discounts, credits, and offsets of any nature. Unless otherwise agreed to by the Bank in writing, Eligible Accounts do not include Accounts: (1) with respect to which the Account Debtor is an employee or agent of the Borrower or CRG; (2) with respect to which the Account Debtor is affiliated with or related to the Borrower or CRG; (3)... with respect to which goods are placed on consignment, guaranteed sale, or other terms by reason of which the payment by the Account Debtor may be conditional; (4) with respect to which the Account Debtor is not a resident of the United States, except to the extent such Accounts are supported by insurance, bonds or other assurances satisfactory to the Bank; (5) with respect to which the Borrower or CRG is or may become liable to the Account Debtor for goods sold or services rendered by the Account Debtor to the Borrower or CRG; (6) which are subject to dispute, counterclaim, or setoff; (7) with respect to which the goods have not been shipped or delivered, or the services have not been rendered, to the Account Debtor; (8) with respect to which the Bank, in its sole discretion, deems the creditworthiness or financial condition of the Account Debtor to be unsatisfactory; (9) of any Account Debtor who has filed or has had filed against it a petition in bankruptcy or an application for relief under any provision of any state or federal bankruptcy, insolvency, or debtor-in-relief acts; or who has had appointed a trustee, custodian, or receiver for the assets of such Account Debtor; or who has made an assignment for the benefit of creditors or has become insolvent or fails generally to pay its debts (including its payrolls) as such debts become due; (10) with respect to which the Account Debtor is the United States government or any department or agency of the United States; (11) which have not been paid in full within sixty (60) days from the invoice date; (12) which are in the nature of rebates due from vendors and suppliers of parts and other inventory purchased by the Borrower or CRG; and (13) which may be subject to year end adjustments. In no event will the balance of any Account of any single Account Debtor be eligible whenever the portion of the Account which has not been paid within sixty (60) days from the invoice date is in excess of 25% of the total amount outstanding on the Account. View More
Eligible Accounts. The book United States dollar value (net of finance charges and service charges) of only such accounts of Borrowers arising from the sale of inventory or the rendition of services in the ordinary course of business in which only the Lender holds a security interest and as to which the Lender, in its sole discretion, shall from time to time determine to be collectible in a timely manner in the ordinary course of business without dispute on set-off and otherwise acceptable to Lender. Without... limiting the Lender's right, in its sole discretion, to consider any account not to be an Eligible Account, and by way of example only of types of accounts that the Lender will consider not to be Eligible Accounts, the Lender, notwithstanding any earlier classification of eligibility, may consider any account not to be an Eligible Account if: (i) any warranty is breached as to the account or the account debtor disputes liability or makes any claim with respect to the account; (ii) (a) the account is not paid by the account debtor within 90 days after the date of the original invoice relating thereto; or (b) the account is owed by any account debtor who has not paid 25% or more of such account debtor's accounts within the time period specified in subsection (ii)(a) above; (iii) a petition in bankruptcy or other application for relief under any insolvency law is filed with respect to the account debtor owing the account, or the account debtor owing the account assigns for the benefit of creditors, becomes insolvent, fails, suspends, or goes out of business, or the Lender, in its reasonable discretion, shall become dissatisfied with the creditworthiness of an account debtor owing an account; (iv) the account arises from a sale to an account debtor outside the United States, unless the sale is on letter of credit, acceptance or other terms acceptable to the Lender; (v) the account debtor is (a) an Affiliate, supplier or creditor of any Borrower, (b) a member, shareholder, employee or agent of any Borrower, or (c) a subsidiary of, or affiliated with any Borrower or its shareholders, members, officers, or directors; (vi) the account debtor is the United States of America or any agency or department thereof and the account is subject to the Assignment of Claims Act; (vii) the account has not been invoiced or is represented by an invoice dated prior to the shipment of inventory or rendition of services relating to such account; (viii) the account is not denominated in U.S. Dollars; (ix) it arises from a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment, other terms by reason of which the payment by the account debtor may be conditional or any other repurchase or return basis or represents billing for samples or is evidenced by chattel paper; (x) it is retention or progress billing or is subject to any offset, deduction, defense, dispute or counterclaim or the customer is also a creditor or supplier of any Borrower or the account is otherwise contingent or subject to deduction, other than discounts and allowances made in the ordinary course of business for prompt payment; or (xi) any surety has issued a bond in favor of the account debtor with respect to the contractual obligations of any Borrower to such account debtor. No advances will be made against the portion of accounts of any single account debtor which exceeds 20% of all Eligible Accounts or against any portion of any Eligible Account which consists of interest or finance charges View More
Eligible Accounts. Accounts which consist of progress billings (such that the obligation of the Account Debtors with respect to such Accounts is conditioned upon the applicable Credit Party's satisfactory completion of any further performance under the agreement giving rise thereto) or retainage invoices; provided that Eligible Retainage Accounts and Eligible Progress Billings shall not be classified as ineligible under this clause (t) to the extent that the aggregate amount of all such Accounts would not... increase the aggregate amount of the Regular Borrowing Base by more than 5.0% before giving effect to inclusion of such Eligible Retainage Accounts and Eligible Progress Billings View More
Eligible Accounts. At any time, all of the Borrower's Accounts in which the Bank has a first priority continuing perfected Lien and which are earned, delivered or shipped and invoiced within thirty (30) days of being earned and which contain selling terms and conditions satisfactory to the Bank, and are not evidenced by a promissory note or other instrument or chattel paper. The net amount of any Eligible Account against which the Borrower may borrow shall exclude all returns, discounts, credits, and offsets of... any nature. Eligible Accounts do not include Accounts: (1) which are not owned by the Borrower free and clear of all claims of Persons other than the Bank; (2) when the Account Debtor is an Affiliate of the Borrower or employee, officer, director, Equity Owner or agent of the Borrower; (3) when the Account Debtor is not a resident of the United States or Canada, or the account is not payable in U.S. Dollars; (4) subject to the U.S. Office of Foreign Asset Control Special Designated Nationals and Blocked Person's List, or when the Account Debtor is otherwise a Person with whom the Borrower or the Bank is prohibited from doing business by any applicable Legal Requirement; (5) when the Bank determines the creditworthiness, financial or business condition of the Account Debtor to be unsatisfactory, including but not limited to any bankrupt Account Debtor; (6) when the Account Debtor is the United States government or any department or agency of the United States (unless, with the Bank's consent, the Assignment of Claims Act has been fully complied with); (7) otherwise determined to be ineligible by the Bank; and (8) which have not been paid in full within ninety (90) days from the invoice date. View More
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