Common use of Establishment of a Reserve Clause in Contracts

Establishment of a Reserve. Upon the purchase by Buyer of each Purchased Receivable, Buyer shall establish a reserve. The reserve shall be the amount by which the face amount of the Purchased Receivable exceeds the Advance on that Purchased Receivable (the “Reserve”); provided, the Reserve with respect to all Purchased Receivables outstanding at any one time shall be an amount not less than 20(%) percent of the Account Balance at that time, and not less than 35(%) percent with respect to the initial purchase, and such amount may be set at a higher percentage at Buyer’s sole discretion. The reserve shall be a book balance maintained on the records of Buyer and shall not be a segregated fund. 3.

Establishment of a Reserve. Upon the purchase by Buyer of each Purchased Receivable, Buyer shall establish a reserve. The reserve shall be the amount by which the face amount of the Purchased Receivable exceeds the Advance on that Purchased Receivable (the “Reserve”); provided, the Reserve with respect to all Purchased Receivables outstanding at any one time shall be an amount not less than 20(%) percent of the Account Balance at that time, and not less than 35(%) percent with respect to the initial purchase, and such amount may be set at a higher percentage at Buyer’s sole discretion. The reserve shall be a book balance maintained on the records of Buyer and shall not be a segregated fund. 3.

Establishment of a Reserve. Upon the purchase by Buyer of each Purchased Receivable, Buyer shall establish a reserve. The reserve shall be the amount by which the face amount of the Purchased Receivable exceeds the Advance on that Purchased Receivable (the “"Reserve”"); provided, the Reserve with respect to all Purchased Receivables outstanding at any one time shall be an amount not less than 20(%twenty percent (20.0%) percent of the Account Balance at that time, and not less than 35(%) percent with respect to the initial purchase, and such amount may be set at a such higher percentage at Buyer’s sole discretionas the parties may agree, to the extent that the parties agree to a lower Advance percentage as provided in Section 2.2. The reserve Reserve shall be a book balance maintained on the records of Buyer and shall not be a segregated fund. 3.