ADVANCE LIMIT Clause Samples
The Advance Limit clause sets a maximum cap on the amount of funds or credit that can be advanced to a party under an agreement. In practice, this means that even if additional funds are requested or needed, the advancing party is not obligated to provide more than the specified limit. This clause is commonly used in loan agreements or revolving credit facilities to control financial exposure and manage risk. Its core function is to protect the lender or provider by ensuring that their total liability does not exceed a predetermined amount, thereby preventing overextension of credit.
ADVANCE LIMIT. The sum of the Revolving Advance Limit -- the principal amount of all Term Loans outstanding from time to time, if any, is referred to herein as the ADVANCE LIMIT.
ADVANCE LIMIT. (Section 1.1) An amount not to exceed the lesser of $45,000,000 (“Maximum Discretionary Line Amount”) or the sum of (a) and (b) below:
(a) 85% of the net amount of Client’s Eligible Receivables (as defined in Section 8 above); plus
(b) the lesser of (i) 50% of the value of Client’s Eligible Inventory (as defined in Section 8 above) and (ii) 85% of the net orderly liquidation value (as determined by an independent third-party inventory appraisal acceptable to ▇▇▇▇▇ Fargo Century), which is located at Client’s Address, ▇▇▇▇ ▇.▇. ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ [Dorel], Florida and at any other location where ▇▇▇▇▇ Fargo Century has received a signed collateral access agreement in form and substance acceptable to it; provided that the amount under this subsection 1(b) shall not exceed the lesser of (i) 30% of total Advances outstanding at any given time, and (ii) $8,000,000. “Value” of Client’s Eligible Inventory shall mean the lower of cost or wholesale market value thereof, as determined by ▇▇▇▇▇ Fargo Century in its sole discretion.
(c) based on the formula set forth in (b) above, the initial advance rates against Inventory by product type as of the date hereof are: Very Kool 20.0% LG 50.0% Samsung 50.0% Other Brands 30.00%
ADVANCE LIMIT. Advance Limit means, at any date, the sum of (i) the product of (A) the Purchased Securities Collateral Value, and (B) the then applicable Advance Rate; and (ii) the product of (A) the Other Collateral Value, and (B) the then applicable Advance Rate, all as calculated in the sole discretion of the Bank.
ADVANCE LIMIT. The Advance Limit shall not in the aggregate at any time outstanding exceed the lesser of:
(i) Five Million ($5,000,000) Dollars; or
(ii) The result of the following calculation:
ADVANCE LIMIT. The Advance Limit shall not in the aggregate at any time outstanding exceed the lesser of:
(i) Seven Million ($7,000,000.00) Dollars; or
(ii) The result of the following calculation: (x) eighty-five percent (85%) of the face amount of Borrower's Qualified Accounts Receivable, plus
ADVANCE LIMIT. (Section 1.1) An amount not to exceed the lesser of $3,000,000 or 85% of the net amount of Client's Eligible Receivables (as defined in Section 8 above). ================================================================================
ADVANCE LIMIT. The Revolving Advance Limit also is referred to herein as the Advance Limit.
ADVANCE LIMIT. An Advance for a specific Project shall not be less than Five Hundred Thousand Dollars ($500,000) or more than Five Million Dollars ($5,000,000).
ADVANCE LIMIT. (Section 1.1) An amount not to exceed the lesser of $3,000,000 or the sum of (a) and (b) below:
(a) 85% of the net amount of Client's Eligible Receivables (as defined in Section 8 above); plus
(b) 50% of the value of Client's Eligible Inventory (as defined in Section 8 above), which is located at 2201 PARK PLACE, #101, EL SEGUNDO, CA ▇▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇▇., ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ITOS, CA 90703; p▇▇▇▇▇▇▇ ▇▇▇▇:
(1) the amount under this subsection 1(b) shall not exceed the lesser of (i) the amount under subsection 1(a) above, or (ii) $1,000,000. "Value" of Client's Eligible Inventory shall mean the lower of cost or wholesale market value thereof, as determined by Wells Fargo Century in its sole discretio▇."
ADVANCE LIMIT. The Revolving Advance Limit plus the principal amount of all Term Loans outstanding from time to time is referred to herein as the Advance Limit.