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 or the Restive may be established from collections which Buyer may receive on any Account, Purchased Receivable, or Proceeds of any other Collateral (the “Reserve”). The Reserve shall be a book balance maintained on the records of Buyer and shall not be a segregated fund, and may be accumulated by Buyer, or released to ▇▇▇▇▇▇, in any amount, in Buyer’s sole discretion. In order to facilitate the payment and performance of all Obligations, Buyer may, at any time, in its sole discretion: (a) adjust the Reserve upward or downward; or (b) pay into the Reserve collections received on any Account, Purchased Receivable, or the Proceeds of any other Collateral. Buyer’s maintenance of the Reserve shall not vest the Seller with any right title, or interest therein as it is understood that the Reserve is an account established to facilitate the payment and performance of all Obligations. Buyer in its discretion may increase the Reserve to account for any potential Avoidance