Bad Debt Reserve Clause Samples

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Bad Debt Reserve. Prior to Closing, Primary Shareholders and Purchaser shall review Company's outstanding accounts receivable (including the payment history and credit worthiness thereof) and shall each cooperate with each other in good faith to determine the amount of any bad debt reserve (if any) that should be included as part of the Estimated Closing Balance Sheet and the Final Closing Balance Sheet.
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Bad Debt Reserve. Borrower shall maintain on its books and records a Bad Debt Reserve of the ratio of actual losses to average net receivables to the then most recent twelve (12) month period to be reviewed and tested on the last day of each month. Any deficiency in the amount of the Bad Debt Reserve maintained by Borrower shall result in a commensurate adjustment to Borrower's earnings and Adjusted Net Worth for purposes of calculating the financial covenants and earnings.
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Bad Debt Reserve. BestCare’s bad debt reserve balance is $51,324 as of the Effective Date. Arcadia shall pay BestCare $20,000 of this reserve in cash on April 8, 2011 and the remaining $31,324 with the first interest payment on the Promissory Note. Any charges or write-offs for bad debt on or after the Effective Date will not reduce the amounts paid to BestCare.
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Bad Debt Reserve. Borrowers shall maintain a bad debt reserve of ---------------- at least 1.8% of the aggregate Net Lease Receivables.
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Bad Debt Reserve. Each month a reserve is calculated by the Senior Credit & Collections Analyst for uncollectible accounts based on the A/R Aging Report. The aging is downloaded into excel and sorted by days overdue. Any accounts over 60 days past due are included in the analysis. The customers’ accounts are discussed with the A/R Administrators on a case by case basis. Any accounts that are known to be collectible are considered exceptions to the reserve, and are subtracted from the total population. Past due accounts from 61 – 90 days are reserved for at 25%; 91 – 120 days are reserved for at 50%; 121 – 150 days are reserved for at 75%; over 150 days past due are reserved for at 100%. Each month the bad debt reserve calculation is reconciled to the general ledger by the Senior Credit and Collections Analyst (REV38). The V.P. of Finance then reviews, signs, and dates the bad debt reserve reconciliation (REV39). The Senior Credit & Collections Analyst compares the bad debt reserve per the calculation to the bad debt reserve general ledger account and makes a journal entry to adjust the account balance to the reserve calculation with the offsetting debit/credit going to uncollectible accounts expense. Each month a reserve is calculated by the Senior Credit & Collections Analyst for deductions (DNotes) that are estimated to be taken by customers for various reasons (e.g. shortages, violations, deal sheets.) When a claim is made by a customer, the reserve is estimated at 100% of the value of the claim. Each DNote is discovered by analyzing the remittances from customers included with their payments. Each DNote is then researched by the A/R Administrator / Research Analyst. The Research Analyst handles deductions related to shortages, violations, pricing, and returns. The A/R Administrators handle anything that has to do with the deal sheets. Deal sheets are the pricing / promotions and order discount claims. Each month the debit notes reserve calculation is reconciled to the general ledger by the Senior Credit and Collections Analyst. (REV40). The V.P. Finance then reviews, signs, and dates the debit notes reserve reconciliation (REV41). The Senior Credit & Collections Analyst compares the debit notes reserve per the calculation to the reserve for future debit memos general ledger account and makes a journal entry to adjust the account balance to the reserve calculation with the offsetting debit/credit going to the sales returns and allowances account. • First ▇▇▇▇▇▇▇ Letter i...
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Bad Debt Reserve. Company will hold back or cause the LECs to hold back an amount estimated to be sufficient to set off any Bad Debt that may be determined after the date Company makes its payment to Customer for Customer’s Qualifying Records billed and collected by the LEC. Any Bad Debt Reserve withheld by the LEC generally will be passed through to Customer on the same percentage or the same amount as Company was assessed by the individual LECs. However, once sufficient data becomes available to Company to enable Company to determine a specific Bad Debt history attributable to Customer, the Bad Debt Reserve may be increased or decreased, as the case may be, based on Customer’s historical Bad Debt amounts, Customer Service, adjustment levels, and other factors, or the LEC amount, whichever is higher. A schedule setting forth the past twelve months’ average Bad Debt Reserve by each LEC will either be disclosed or made available to Customer.
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Related to Bad Debt Reserve

  • Interest Reserve 8.3.1 On the date hereof, Borrower shall deposit with Lender the sum set forth on Exhibit K hereto as the Interest Reserve to be held in an account maintained at a bank designated by Lender and pledged to Lender as additional collateral for the Loan (the "Interest Reserve Account"). The Interest Reserve Account shall be an interest-bearing account and all interest earned thereon shall become part of the Interest Reserve Account for the benefit of Borrower. 8.3.2 Provided that no Event of Default shall then exist and be continuing, if, on any Payment Date, the amount then on deposit in the Monthly Debt Service Subaccount (as defined in the Cash Management Agreement), minus the amount, if any, due under Section 8.7.3 hereof, shall be less than the amount of interest then due under the Note, Lender shall disburse the amount of such deficiency from the Interest Reserve Account to pay such interest. Any such amounts so disbursed shall be deemed paid by Borrower and Borrower shall not be deemed to have failed to pay such interest for the purposes of Section 6.1.1 by reason thereof. 8.3.3 If an Event of Default has occurred and is continuing hereunder, Lender may apply all amounts on deposit in the Interest Reserve Account to the Indebtedness in such order, priority and proportions as Lender in its discretion shall deem proper. 8.3.4 Nothing contained in this paragraph shall limit the obligation of Borrower to pay interest or other amounts due under the Note or any other Loan Document. The Interest Reserve Account shall not constitute a trust fund and may not be commingled with other monies held by Lender. Upon assignment of the Note and Mortgage by Lender in their entirety, Lender's security interest in, and all other right, title and interest of Lender in and to, the funds in the Interest Reserve Account shall be transferred and assigned to the assignee and Lender shall have no further obligation with respect thereto.

  • Debt Service Reserve Borrower shall establish and maintain a debt service reserve account (“Debt Service Reserve”). The account shall be deposited with Lender or in a safe and responsible depository designated by Lender. Such funds shall at all times remain under the control of Lender, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD. Such funds are to be drawn upon only with HUD’s consent, which consent may require replenishment to the minimum balance. The purpose of this reserve is to protect the insured loan in circumstances where ▇▇▇▇▇▇▇▇’s funds generated by the Project are insufficient to make the required debt service payments on the Note while other Project obligations remain current. Borrower shall deposit at endorsement of the Note an initial amount of $_________. Thereafter, the minimum allowable balance shall be $___________, and if at any time the balance of the Debt Service Reserve is less than the minimum allowable balance, Borrower shall make such deposits as necessary to cause the balance to be no less than such minimum allowable balance. The Borrower may make or take no Distribution at any time when the balance of that account is below the minimum allowable balance. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Debt Service Reserve shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Debt Service Reserve. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion and upon such terms as approved by HUD. In the event of a notification of default under the terms of the Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. Where the Mortgaged Property is already subject to a security instrument insured or held by HUD as of the date hereof and this Agreement is now being executed by Borrower as of the date hereof, the Debt Service Reserve now to be established shall be equal to the amount due to be in such account under this Agreement, and payments hereunder shall begin with the first payment due on the Borrower’s Note after acquisition, unless some other method of establishing and maintaining the account is approved in writing by HUD. Upon ▇▇▇▇▇▇▇▇’s full satisfaction of all Lender and HUD obligations, Borrower shall receive any monies remaining in the Debt Service Reserve.

  • Stock Reserve The Company shall at all times during the term of this Option Agreement reserve and keep available such number of shares of Stock as will be sufficient to satisfy the requirements of this Option Agreement.

  • Debt Service Reserve Account Borrower shall fund and maintain a debt service reserve in the Debt Service Reserve Account, in an amount equal to twelve (12) monthly payments of principal and interest on the Term Loan as determined from time to time by the Lender (the “Debt Service Reserve Amount”). Beginning with the first fiscal year end after the Effective Date, and at each fiscal year end thereafter, until such time as the balance in the Debt Service Reserve Account is equal to or greater than the Debt Service Reserve Amount, one hundred percent (100%) of Excess Cash Flow shall be deposited in the Debt Service Reserve Account by Borrower within 120 days of each fiscal year end. The balance held in the Debt Service Reserve Account shall earn interest at the rate determined by the Lender from time to time. If at any time after the Debt Service Reserve Amount has been fully funded by the Borrower the balance in the Debt Service Reserve Account is less than sixty-seven percent (67.0%) of the applicable Debt Service Reserve Amount, the Borrower shall, within sixty (60) days after receipt of notice from the Lender as provided herein, deposit in the Debt Service Reserve Account an amount sufficient to restore the balance in the Debt Service Reserve Account to an amount not less than the Debt Service Reserve Amount; provided, however, Borrower shall not be required to make a deposit in the Debt Service Reserve Account to the extent that such a deposit would exceed one hundred percent (100%) of Excess Cash Flow, calculated based upon unaudited monthly financial statements required by Section 5.01(c)(ii) of this Agreement for the month ending immediately prior to receipt of notice from the Lender. In the event that Borrower is not required to fully restore the balance in the Debt Service Reserve Account pursuant to the foregoing sentence, Borrower shall at the earliest possible date thereafter, to the extent of Excess Cash Flow determined on unaudited monthly financial statements required by Section 5.01(c)(ii) of this Agreement or audited financial statements required by Section 5.01(c)(i) of this Agreement, as applicable, deposit in the Debt Service Reserve Account such additional amounts as will restore the balance in the Debt Service Reserve Account to an amount not less than the Debt Service Reserve Amount. As and when any of the Loan Obligations are past due, after any applicable grace periods have expired, under any Loan Document, Lender, in its sole discretion, may withdraw from the Debt Service Reserve Account the amount of the then past due Loan Obligations and apply such amounts to the payment of the past due Loan Obligations. Notwithstanding the foregoing sentence, if an Event of Default has occurred and is continuing under the Loan Documents, the Lender may, after any applicable grace periods have expired, withdraw amounts in the Debt Service Reserve Account, in its sole discretion, and apply such amounts to the payment of the Loan Obligations in such order and manner as Lender shall determine in its sole discretion. Withdrawals by the Lender of any amounts from the Debt Service Reserve Account to pay any Loan Obligations as provided in this Section 2.14 may be made without the requirement of any consent by or notice to the Borrower, provided that Lender shall provide to Borrower notice that such withdrawal was made within a reasonable time thereafter. Borrower recognizes and acknowledges that its obligation to pay the Loan Obligations are absolute and unconditional and it is not dependent upon sufficient deposits in the Debt Service Reserve Account being available to make payment on any Loan Obligations, and nothing herein shall be construed to negate or modify the Borrower’s absolute and unconditional obligation to pay the Loan Obligations in accordance with the terms and conditions of this Agreement and the Loan Documents. Borrower shall execute and deliver to the Lender any and all deposit account control agreements the Lender may reasonably request in accordance with the terms and conditions of the Loan Documents, and take all actions and deliver all documents the Lender may reasonably request or require to perfect the Lender’s security interest in the Debt Service Reserve Account, in accordance with the terms and conditions of the Loan Documents.

  • Required Reserve Amount So long as this Warrant remains outstanding, the Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock at least equal to 100% of the maximum number of shares of Common Stock as shall be necessary to satisfy the Company’s obligation to issue shares of Common Stock under the Warrants then outstanding (without regard to any limitations on exercise) (the “Required Reserve Amount”); provided that at no time shall the number of shares of Common Stock reserved pursuant to this Section 1(g) be reduced other than in connection with any exercise of Warrants or such other event covered by Section 2(c) below. The Required Reserve Amount (including, without limitation, each increase in the number of shares so reserved) shall be allocated pro rata among the holders of the Warrants based on the number of shares of Common Stock issuable upon exercise of Warrants held by each holder thereof on the Issuance Date (without regard to any limitations on exercise) (the “Authorized Share Allocation”). In the event that a holder shall sell or otherwise transfer any of such holder’s Warrants, each transferee shall be allocated a pro rata portion of such holder’s Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any Person which ceases to hold any Warrants shall be allocated to the remaining holders of Warrants, pro rata based on the number of shares of Common Stock issuable upon exercise of the Warrants then held by such holders thereof (without regard to any limitations on exercise).