Limitations on Borrowings Sample Clauses
The 'Limitations on Borrowings' clause sets restrictions on the amount and types of debt a party, typically a borrower, can incur during the term of an agreement. This clause may specify maximum borrowing thresholds, prohibit certain forms of indebtedness, or require lender approval before taking on additional loans. By imposing these limits, the clause helps protect the lender by reducing the risk that the borrower becomes overleveraged and unable to meet its repayment obligations.
Limitations on Borrowings. Outstanding borrowings under the Line of Credit, to a maximum of the principal amount set forth above, shall not at any time exceed an aggregate of eighty percent (80%) of Borrower's eligible accounts receivable, plus, upon completion of an appraisal of Borrower’s finished goods inventory the results of which are satisfactory to Bank in Bank’s sole discretion, thirty percent (30%) of the value of Borrower's finished goods (exclusive of work in process and inventory which is obsolete, unsaleable or damaged), with value defined as the lower of cost or market value; provided however, that outstanding borrowings against such finished goods inventory shall not at any time exceed an aggregate of Four Million Dollars ($4,000,000). All of the foregoing shall be DOCSOC/1656044v2/018854-0004 Exhibit 10.27 determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower's gross sales for said period. If such dilution of Borrower's accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower's accounts, Bank, in its sole discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower's eligible accounts receivable. As used herein, "eligible accounts receivable" shall consist solely of trade accounts created in the ordinary course of Borrower's business, upon which Borrower's right to receive payment is absolute and not contingent upon the fulfillment of any condition whatsoever, and in which Bank has a perfected security interest of first priority, and shall not include:
(i) any account which is either (a) more than sixty (60) days past due or (b) has not paid within ninety (90) days of invoice date regardless of invoice payment period terms;
(ii) that portion of any account for which the...
Limitations on Borrowings. Anything in Section 2.02(a) to the ------------------------- contrary notwithstanding, none of the Borrowers may select (i) Eurodollar Rate Advances for any Borrowing if the aggregate amount of such Borrowing is less than $5,000,000 or if the obligation of the Appropriate Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to Section 2.08 or 2.09 or (ii) Interest Periods for Eurodollar Rate Advances comprising part of any Borrowing that have a duration of more than one month during the period from the date of this Agreement to September 30, 1997 (or such earlier date as shall be specified by the Arranger in its sole discretion in a written notice to Fox Kids and each of the Lenders). In addition, (A) at any time and from time to time prior to the Phase II Closing Date, the Acquisitions Advances may not be outstanding as part of more than eight separate Revolving Credit A Borrowings and (B) at any time and from time to time following the Phase II Closing Date, the Revolving Credit A Advances may not be outstanding as part of more than eight separate Revolving Credit A Borrowings, the Revolving Credit B Advances may not be outstanding as part of more than eight separate Revolving Credit B Borrowings and the Term Advances may not be outstanding as part of more than eight separate Term Borrowings.
Limitations on Borrowings. Outstanding borrowings under the Line of Credit, to a maximum of the principal amount set forth above, shall not at any time exceed to aggregate amounts set forth on Schedule I hereto, which Schedule I shall be completed by Bank and appended hereto from time to time after an audit of the Collateral and/or an audit of Borrower’s inventory, and all terms of which are incorporated herein by this reference.”
4. Section 1.1(c) of the Agreement hereby is amend and restated in its entirety to read as follows:
Limitations on Borrowings. The Company will not, and will ------------------------- not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Indebtedness except (i) the Indebted ness incurred under this Agreement and other Indebtedness to the Bank, (ii) the Indebtedness (other than for borrowed money) on open account or under trade acceptances in the ordinary course of busi ness in connection with normal trade obligations, (iii) unsecured intercompany accounts between the Subsidiaries of the Company, or any of them, on the one hand, and the Company, on the other, (vii) the Indebtedness for taxes and other charges to the extent per mitted under Sections 5.2 and 5.6 hereof and (v) Indebtedness listed on Exhibit G hereto. ---------
Limitations on Borrowings. It shall constitute an Event of Default if any of the Debtors obtains authorization from the Court for the Debtors or their estates to borrow money (other than in accordance with the DIP Credit Agreement or through credit terms in the ordinary course of business from any vendor, supplier, customer or the like) from any person other than the DIP Lenders; provided, however, that the Debtors may request and obtain such authorization in connection with postpetition financing, loans or financial accommodations that will indefeasibly repay in full all Revolving Facility Obligations, Revolving Facility Adequate Protection Obligations, and DIP Obligations; provided, further, however, that in connection with the seeking or obtaining of such postpetition financing, loans, or financial accommodations, the Debtors may not rely on the consent of the Prepetition Secured Parties to the relief granted in this Interim Order and any and all such consent shall be deemed to have automatically terminated.
Limitations on Borrowings. The Borrower shall not request more than three Borrowings to occur prior to the Tranche B Commitments Effective Date, nor more than five Borrowings to occur after the Tranche B Commitments Effective Date.
Limitations on Borrowings. It shall constitute an Event of Default if any of the Debtors obtain authorization from the Court for the Debtors or their estates to borrow money (other than in accordance with the DIP Credit Agreement) from any person other than the DIP Lenders; provided, however, that the Debtors may request and obtain such authorization in connection with postpetition financing, loans or financial accommodations that will indefeasibly repay in full all DIP Obligations; provided, further, however, that in connection with the seeking or obtaining of such postpetition financing, loans, or financial accommodations, the Debtors may not rely on the consent of the Prepetition Secured Parties to the relief granted in this Interim Order and any and all such consent shall be deemed to have automatically terminated.
Limitations on Borrowings. (a) Consistent with the terms of Section 4.2 (a) of the Sixth Amendment, the Borrower hereby agrees that, notwithstanding anything to the contrary in the Credit Agreement, during the Agreement Effective Period, the Borrower shall not have the right to, and shall not, request a borrowing of Revolving Credit Loans or Swing Line Loans, or the issuance of a Letter of Credit.
(b) Consistent with the terms of Section 4.2(b) of the Sixth Amendment, the Borrower hereby agrees that, notwithstanding anything to the contrary in the Credit Agreement, during the Agreement Effective Period, (i) all outstanding Eurodollar Loans shall automatically be converted to Base Rate Loans at the end of the current Interest Periods with respect thereto and (ii) no outstanding Base Rate Loans may be converted to Eurodollar Loans at any time.
Limitations on Borrowings. Borrower will not, and will not permit any of its Subsidiaries to, incur, create, assume or permit to exist any Indebtedness, except (i) the Notes, (ii) Indebtedness incurred in the ordinary course of Borrower's or Subsidiary's business in connection with normal trade obligations, including the financing of Borrower's annual insurance premiums; (iii) any Indebtedness previously made or contemplated to be made in the future by Lenders to Borrower or a Subsidiary; and (iv) purchase money indebtedness not to exceed $2,000,000 in the aggregate.
Limitations on Borrowings. Section 2.1(b) of the Credit Agreement is amended by substituting "$2,500,000.00" in place of "$7,500,000.00" in the first paragraph thereof.