ACCOMMODATION ON ANY OTHER
OCCASION NOR TO PERMIT SUCH LOANS, CREDITS, OR ADVANCES TO REMAIN OUTSTANDING.
1-3.
RISKS OF VALUE OF INVENTORY.
THE LENDER'S REFERENCE TO A GIVEN
ASSET IN CONNECTION WITH THE MAKING OF LOANS AND ADVANCES AND THE PROVIDING OF
FINANCIAL ACCOMMODATIONS UNDER THE REVOLVING CREDIT AND/OR THE MONITORING OF
COMPLIANCE WITH THE PROVISIONS HEREOF SHALL NOT BE DEEMED A DETERMINATION BY THE
LENDER RELATIVE TO THE ACTUAL VALUE OF THE ASSET IN QUESTION. ALL RISKS
CONCERNING THE SALEABILITY OF THE INVENTORY ARE AND REMAIN UPON THE BORROWERS.
ALL COLLATERAL SECURES THE PROMPT, PUNCTUAL, AND FAITHFUL PERFORMANCE OF THE
LIABILITIES WHETHER OR NOT RELIED UPON BY THE LENDER IN CONNECTION WITH THE
MAKING OF LOANS, CREDITS, AND ADVANCES AND THE PROVIDING OF FINANCIAL
ACCOMMODATIONS UNDER THE REVOLVING CREDIT.
1-4.
PROCEDURES UNDER REVOLVING CREDIT.
(A)
THE BORROWERS MAY REQUEST LOANS AND ADVANCES UNDER THE REVOLVING
CREDIT, EACH IN AN AMOUNT SPECIFIED BY THE BORROWERS.
EACH SUCH REQUEST SHALL
BE IN SUCH MANNER AS MAY FROM TIME TO TIME BE ACCEPTABLE TO THE LENDER AND SHALL
SPECIFY THE TYPE OF LOAN OR ADVANCE TO BE MADE UNDER THE REVOLVING CREDIT.
IN
THE EVENT THAT THE BORROWERS DO NOT SPECIFY THE TYPE OF LOAN OR ADVANCE TO BE
MADE UNDER THE REVOLVING CREDIT, THE BORROWERS SHALL BE DEEMED TO HAVE REQUESTED
A BASE RATE LOAN.
(B)
THE LENDER, SUBJECT TO THE TERMS AND CONDITIONS OF THIS AGREEMENT,
WILL PROVIDE THE BORROWERS WITH THE LOAN OR ADVANCE SO REQUESTED, IF SUCH
REQUEST IS RECEIVED BY NOON, BOSTON TIME ON A BANKING DAY, BY THE END OF
BUSINESS ON THAT BANKING DAY; OTHERWISE, BY THE END OF THE THEN NEXT BANKING
DAY. THE LENDER MAY REVISE SUCH SCHEDULE, FROM TIME TO TIME, BY GIVING NOTICE TO
BORROWERS AT LEAST ONE DAY IN ADVANCE.
(C)
PROVIDED THAT AVAILABILITY WILL NOT BE EXCEEDED (BUT SUBJECT,
HOWEVER, TO SUBSECTION 1-4(I), BELOW (WHICH DEALS WITH THE EFFECT OF A
SUSPENSION EVENT)), A LOAN OR ADVANCE UNDER THE REVOLVING CREDIT SO REQUESTED BY
THE BORROWERS SHALL BE MADE BY THE TRANSFER OF THE PROCEEDS OF SUCH LOAN OR
ADVANCE TO THE FUNDING ACCOUNT.
(D)
A LOAN OR ADVANCE SHALL BE DEEMED TO HAVE BEEN MADE UNDER THE
REVOLVING CREDIT UPON:
(I)
THE LENDER'S INITIATION OF THE TRANSFER OF THE PROCEEDS OF SUCH
LOAN
2
OR ADVANCE IN ACCORDANCE WITH THE BORROWERS' INSTRUCTIONS (IF SUCH LOAN OR
ADVANCE IS OF FUNDS REQUESTED BY THE BORROWERS).
(II)
THE CHARGING OF THE AMOUNT OF SUCH LOAN OR ADVANCE TO THE LOAN
ACCOUNT (IN ALL OTHER CIRCUMSTANCES).
(E)
IN THE ABSENCE OF WILLFUL NEGLECT OR BAD FAITH ON THE PART OF THE
LENDER, THERE SHALL NOT BE ANY RECOURSE TO, NOR LIABILITY OF, THE LENDER ON
ACCOUNT OF:
(I)
ANY DELAY IN THE MAKING OF ANY LOAN OR ADVANCE REQUESTED UNDER
THE REVOLVING CREDIT.
(II)
ANY DELAY IN THE PROCEEDS OF ANY SUCH LOAN OR ADVANCE
CONSTITUTING COLLECTED FUNDS.
(III)
ANY DELAY IN THE RECEIPT, AND/OR ANY LOSS, OF FUNDS WHICH