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 30(%) percent (or 20(%) percent on Purchased Receivables with terms of ----- ----- 30 days or less) of the Account Balance at that time and 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.

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 Parent Purchased Receivables outstanding at any one time shall be an amount not less than 30(%) 15 percent (or 20(%) percent on Purchased Receivables with terms of ----- ----- 30 days or less) of the Account Balance at that time and may be set at a higher percentage at Buyer's sole discretion. The Reserve with respect to all Subsidiary Purchased Receivables outstanding at any one time shall be an amount not less than 50 percent of the Account Balance at that time and may be set a higher percentage at Buyers sole discretion. The reserve shall be a book balance maintained on the records of Buyer and shall not be a segregated fund.,