Eligible LC Inventory

Eligible LC Inventory. Inventory (without duplication as to Eligible Inventory), which is to be manufactured or has then been shipped for receipt, within Forty Five (45) days, at a warehouse of the Borrower located in a jurisdiction in the United States in which the Agent will have a first and only perfected security interest in such Inventory and payment for the underlying Inventory is to be made by an L/C, provided that (a) Such Inventory is of such types, character, qualities and quantities (net of... Inventory Reserves) as the Agent in its discretion from time to time determines to be eligible for borrowing; and (b) The documents which relate to such shipment either name the Agent as consignee of the subject Inventory or the Agent has control over the documents which evidence ownership of the subject Inventory (such as by the providing to the Agent of a Customs Agent Agreement); (c) Inventory to be manufactured shall only constitute Eligible L/C Inventory to the extent the L/C issued in connection therewith remains undrawn; and (d) the Agent is named as loss payee on any special policies of insurance taken out by the Borrower for the period during which such Inventory is in transit. View More

Eligible LC Inventory. Finished goods Inventory owned by Client and covered by documentary Letters of Credit, which finished goods Inventory is in transit to Client's premises located at 5804 E. Slauson Avenue, Commerce, California, and which finished goods Inventory (a) is owned by Client, (b) is fully insured, (c) is subject to a first priority security interest in and lien upon such goods in favor of Factor (except for any processor lien upon such goods in the possession of a freight carrier or shipping company... securing only the freight charges for the transportation of such goods to Client), (d) is evidenced or deliverable pursuant to documents, notices, instruments, statements and bills of lading that have been delivered to Factor or an agent acting on its behalf, and (e) is otherwise deemed to be Eligible Inventory. View More