MAXIMUM BANK DEBT

MAXIMUM BANK DEBT. On any date of determination thereof, an amount equal to the Maximum Revolving Credit Amount on such date, regardless of whether allowed or allowable in any Insolvency Proceeding; PROVIDED, HOWEVER, that the Maximum Bank Debt shall be calculated without giving effect to any decreases in the Maximum Revolving Credit Amount occurring after the making, issuance or incurrence of any Revolving Loans or Letters of Credit, as a result of (i) Accounts Receivable or inventory that are... deemed by the Revolving Agent to be eligible on any date thereafter becoming or being deemed, with the passage of time, ineligible (whether as a result of aging, obsolescence, disputes, or non-payment by account debtors or otherwise), the return of uncollected checks or other items of payment applied to the reduction of Revolving Loans, or other similar involuntary or unintentional actions; (ii) the Revolving Agents exercising discretion under the Revolving Credit Agreement to (x) declare Accounts Receivable previously deemed to be Eligible Accounts Receivable or inventory previously deemed to be Eligible Inventory as no longer constituting Eligible Accounts Receivable or Eligible Inventory, (y) reduce advance rates or (z) impose, release, increase or decrease the amount of reserves (except as otherwise expressly set forth in this Intercreditor Agreement); (iii) any failure of the Credit Parties to report accurately the amount of Eligible Accounts Receivable or Eligible Inventory on any Borrowing Base Certificate; or (iv) any revaluations or re-appraisals of Collateral. -3- View More