Common use of Use of Inventory Collateral Clause in Contracts

Use of Inventory Collateral. (a) No Loan Party shall engage in any of the following with respect to its Inventory: (i) Any sale other than for fair consideration in the conduct of the Loan Parties' business in the ordinary course. (ii) Sales or other dispositions to creditors, except returns in the ordinary course of business. (iii) Sales or other dispositions in bulk except in the ordinary course of business consistent with past practices. (iv) Sales in breach of any provision of this Agreement. (v) Sales other than in connection with Permitted Dispositions. (b) Without the prior written consent of the Collateral Agent, no sale of Inventory shall be on consignment (other than between Loan Parties), approval, or under any other circumstances such that, with the exception of the Loan Parties' customary return policy applicable to the return of inventory purchased by the Loan Parties' retail customers in the ordinary course, such Inventory may be returned to a Loan Party without the consent of the Collateral Agent.

Use of Inventory Collateral. (a) No Loan Party shall engage in any of the following with respect to its Inventory: (i) Any sale other than for fair consideration in the conduct of the Loan Parties' ’ business in the ordinary course. (ii) Sales or other dispositions to creditors, except returns in the ordinary course of business. (iii) Sales or other dispositions in bulk except in the ordinary course of business consistent with past practices. (iv) Sales in breach of any provision of this Agreement. (v) Sales other than in connection with Permitted Dispositions. (b) Without the prior written consent of the Collateral Agent, no sale of Inventory shall be on consignment (other than between Loan Parties), approval, or under any other circumstances such that, with the exception of the Loan Parties' ’ customary return policy applicable to the return of inventory purchased by the Loan Parties' ’ retail customers in the ordinary course, such Inventory may be returned to a Loan Party without the consent of the Collateral Agent.