Unencumbered Liquid Assets

Unencumbered Liquid Assets. Means assets of the following description and (i) which are owned by Borrower, (ii) which are not the subject of any lien, mortgage, encumbrance, security interest, pledge, conditional sale, set-off right, title retention agreement, or any other arrangement with any creditor (other than Bank) to have its claim satisfied out of the asset (or proceeds thereof) prior to the general creditors of Borrower, (iii) which are not the subject of any prohibition (contractual, legal or other prohibition)... on the pledge, sale, transfer or other disposition thereof, other than any such prohibition agreed upon by Bank, and (iv) which may be converted to cash by sale or other means within seven (7) days: A) Cash; B) Demand deposits or interest-bearing time and Eurodollar deposits, certificates of deposit or similar banking arrangements with banks; C) Direct obligations of the United States of America in the form of obligations of the United States Treasury or of any other governmental agency or instrumentality whose obligations constitute full faith and credit obligations of the United States of America, which have maturities of ten (10) years or less; D) Commercial paper rated P-1 (or higher) by Moody's Investors Services, Inc. or A-1 (or higher) by Standard & Poor's Corporation; E) Bonds and other fixed income instruments (including tax-exempt bonds) from companies or public entities rated investment grade, and mutual funds that invest substantially all of their assets in such bonds and other fixed income instruments; and F) Mutual funds or money market funds that invest substantially all of their assets in instruments described above in (A), (B), (C), (D) or (E) above. View More

Unencumbered Liquid Assets. Cash, cash equivalents and/or publicly traded/quoted marketable securities acceptable to Bank in its sole discretion, free of any lien or other encumbrance. Account assets held in a fiduciary capacity by Borrower shall not qualify as Unencumbered Liquid Assets.