Common use of Covenants Relating to Inventory Clause in Contracts

Covenants Relating to Inventory. Unless otherwise indicated in writing by such Grantor, the Administrative Agent, for its benefit and the ratable benefit of the Secured Parties, may assume that: (i) all Inventory is either (A) located at places of business or Collateral locations listed on Schedule III attached hereto or (B) is Inventory in transit from one such place of business or Collateral location to another; (ii) no Inventory is subject to any lien or security interest whatsoever, except for those granted to the Administrative Agent, for its benefit and the ratable benefit of the Secured Parties, hereunder and Permitted Liens; (iii) except as specified on Schedule III hereto, no Inventory is now, and shall not at any time or times hereafter be, kept, stored or maintained with a bailee, warehouseman or similar party; and (iv) except as specified on Schedule III hereto, none of such Inventory has been consigned, or, without the Administrative Agent’s or the Required Lenders’ prior written consent, will be consigned to any Person, except in conformity with subsection (c) below.