Eligible Inventory Definition Example with 5 Variations

Eligible Inventory. Means, at At any time, all of the Borrower's Inventory in which the Bank has a first priority continuing perfected Lien except Inventory which is: (1) not owned by it free and clear of all Liens except in favor of the Bank, and claims of Persons other than the Bank; (2) slow moving, obsolete, unsalable, damaged, defective, perishable, or unfit for 2 further processing; (3) work in process; (4) subject to consignment or otherwise in the possession of another Person, unless otherwise agreed to by... the Bank in writing; Person; (5) in transit or located outside of the United States; (6) identified to be purchased under a contract under which it has received, or is entitled to receive, an advance payment; (7) determined by the Bank to be ineligible due subject to licensing, intellectual property, or any Legal Requirements requirements that would make it difficult to sell, lease or use such Inventory; (8) use; (7) comprised of samples, returns, rejected items, re-work items, non-standard items, odd-lots, or repossessed goods; (9) (8) produced in violation of applicable Legal Requirements, including the Fair Labor Standards Act and the regulations and orders of the Department of Labor; or (10) (9) otherwise determined ineligible by the Bank; provided, however, that transportation and storage charges shall be excluded from amounts otherwise included in Eligible Inventory. View More

Eligible Inventory. Means, means, at any time, all of the Borrower's Inventory in which the Bank has a first priority continuing perfected Lien except Inventory which is: (1) not owned by it free and clear of all Liens except in favor of the Bank, and claims of Persons other than the Bank; (2) slow moving, obsolete, unsalable, damaged, defective, perishable, or unfit for 2 further processing; (3) work in process; (4) subject to consignment or otherwise in the possession of another Person, unless otherwise agreed... to by the Bank in writing; (5) in transit or located outside of the United States; (6) identified to be purchased under a contract under which it has received, or is entitled to receive, an advance payment; (7) determined by the Bank to be ineligible due to licensing, intellectual property, or any Legal Requirements that would make it difficult to sell, lease or use such Inventory; (8) comprised of samples, returns, rejected items, re-work items, non-standard items, odd-lots, or repossessed goods; goods, provided however, that analytical systems obtained as trade-in for upgrades and held for sale shall be eligible up to a gross limit of $500,000 book value; (9) produced in violation of applicable Legal Requirements, including the Fair Labor Standards Act and the regulations and orders of the Department of Labor; or (10) otherwise determined ineligible by the Bank; provided, however, that transportation and storage charges shall be excluded from amounts otherwise included in Eligible Inventory. View More

Eligible Inventory. Means, means, at any time, all of the Borrower's Inventory in which the Bank has a first priority perfected continuing perfected Lien security interest except Inventory which is: (1) not owned by it the Borrower free and clear of all Liens except in favor of the Bank, security interests, liens, encumbrances, and claims of Persons other than third parties, except the Bank; (2) slow moving, obsolete, unsalable, damaged, defective, perishable, or unfit for 2 further processing; (3) work in... process; (4) subject to consignment or otherwise in the possession of another Person, a third party, unless otherwise agreed to by the Bank in writing; (5) in transit or located outside of the United States; (6) identified to be purchased under a contract under which it the Borrower has received, or is entitled to receive, an advance payment; (7) determined by the Bank in its sole discretion to be ineligible due to licensing, intellectual property, or any Legal Requirements that would make legal or regulatory issues which exist making it difficult to sell, lease or use resell such Inventory; and (8) comprised of samples, returns, rejected items, re-work items, non-standard items, odd-lots, or repossessed goods; (9) produced in violation of applicable Legal Requirements, law including the Fair Labor Standards Act and the regulations and orders order of the Department of Labor; or (10) otherwise determined deemed ineligible by the Bank; Bank in its sole discretion; provided, however, that transportation and storage charges shall be excluded from amounts otherwise included in Eligible Inventory. View More

Eligible Inventory. Means, means, at any time, all of the Borrower's Inventory in which the Bank has a first priority continuing perfected Lien except Inventory which is: (1) not owned by it free and clear of all Liens except in favor of the Bank, and claims of Persons other than the Bank; (2) slow moving, obsolete, unsalable, damaged, defective, perishable, or unfit for 2 further processing; (3) work in process; (4) subject to consignment or otherwise in the possession of another Person, unless otherwise agreed... to by the Bank in writing; Person; (5) in transit or located outside of the United States; (6) identified to be purchased under a contract under which it has received, or is entitled to receive, an advance payment; (7) determined by the Bank to be ineligible due subject to licensing, intellectual property, or any Legal Requirements requirements that would make it difficult to sell, lease or use such Inventory; (8) use; (7) comprised of samples, returns, rejected items, re-work items, non-standard items, odd-lots, or repossessed goods; (9) (8) produced in violation of applicable Legal Requirements, including the Fair Labor Standards Act and the regulations and orders of the Department of Labor; or (10) (9) otherwise determined ineligible by the Bank; provided, however, that transportation and storage charges shall be excluded from amounts otherwise included in Eligible Inventory. View More

Eligible Inventory. Means, means, at any time, all of the Borrower's Inventory in which the Bank has a first priority continuing perfected Lien except (1) Inventory which is: (1) is not owned by it the Borrower free and clear of all Liens except in favor of the Bank, security interests, liens, encumbrances, and claims of Persons other than third parties, except the Bank; (2) slow moving, obsolete, unsalable, damaged, defective, perishable, or unfit for 2 further processing; Inventory which is aged more than 365... days; (3) work in process; (4) Inventory subject to consignment or otherwise in the possession of another Person, a third party, unless otherwise agreed to by the Bank in writing; (5) Inventory which is in transit and not fully insured by Borrower or which is located outside of the United States; (6) Inventory identified to be purchased under a contract under which it the Borrower has received, or is entitled to receive, an advance payment; (7) Inventory determined by the Bank in its sole discretion to be ineligible due to licensing, intellectual property, or any Legal Requirements that would make legal or regulating issues which exist making it difficult to sell, lease or use resell such Inventory; and (8) Inventory which is comprised of samples, returns, rejected items, re-work items, non-standard items, odd-lots, or repossessed goods; (9) produced in violation of applicable Legal Requirements, including the Fair Labor Standards Act and the regulations and orders of the Department of Labor; or (10) otherwise determined ineligible by the Bank; odd-lots; provided, however, that transportation and storage charges shall be excluded from amounts otherwise included in Eligible Inventory. View More