What is cash dominion in an ABL facility and when does it trigger?
Cash dominion routes customer AR to lender-controlled lockbox/collection accounts and sweeps them to repay the ABL revolver (Mayer Brown; OCC). It may be day-one or springing (Mayer Brown; OCC). Springing typically fires on availability/headroom breach or event of default (Mayer Brown). OCC: may not be required unless excess availability falls below an established threshold. Floors are deal-set (Rocky Brands; Culp).
Last updated: September 13, 2026
Buyer answer: cash dominion and when it triggers
Per Mayer Brown's MBitesize on Cash Dominion, cash dominion is the mechanism where receivables proceeds collected into a borrower's collection accounts are swept to the financier and applied to repay the loan, as opposed to being transferred to the borrower's general trading accounts. The OCC Comptroller's Handbook on Asset-Based Lending glossary matches that control picture: customer receipts go to a lender-controlled lockbox; under full dominion the bank applies proceeds to the loan account before releasing funds; relationships may also be springing.
Mayer Brown states that cash dominion may be in place from day one or may be triggered on a springing basis. On a springing basis, dominion does not apply from the start until a pre-agreed trigger event; then collected proceeds are swept to pay down the loan. In Mayer's experience the most common springing trigger is the earlier of a headroom or availability threshold breach and an "event of default." OCC separately states that cash dominion may not be required unless excess availability falls below an established threshold—fix the live misquote that dominion "may trigger when" availability falls below a threshold.
Attributed Excess Availability floors
Rocky Brands' IR commitment-letter exhibit defines Trigger Period (Dominion) as commencing when an event of default occurs or Excess Availability has been less than the greater of $11,250,000 or 10.0% of the Line Cap for 3 consecutive business days, continuing until no event of default and Excess Availability has been more than that greater-of floor for 30 consecutive days.
Culp Inc. R20 (SEC) lists Cash Dominion if an event of default has occurred or Excess Availability falls below 6.0 million; the Dominion Period ends when Excess Availability is equal to or greater than $ 6.0 million for 60 consecutive days and no event of default is continuing. Do not collapse Rocky's $11,250,000 / 10.0% / 3-day floor with Culp's 6.0 million floor—or with Dollar General EX-99.B (greater of 10.0% Line Cap / $200.0 million for five days, or greater of 7.5% / $137.5 million) or Project Safari EX-99.(d)(4) (greater of 10% Line Cap / $8 million for five consecutive business days). Each floor is exhibit-specific.
How the sweep works when dominion is on
Mayer Brown: when dominion is in effect, receivables are swept from collection accounts to an account of the financier, often daily, then applied down a payment waterfall. OCC Lockbox and Cash Dominion Arrangements: customers are directed to send payments to a post office box / collateral deposit account controlled by the bank; the bank may elect full dominion or springing dominion over cash receipts. Dollar General and Project Safari exhibits likewise list sweeps of controlled accounts into agent collection/concentration accounts during a Cash Dominion Trigger Period.
| Claim | Listed | URL |
|---|---|---|
| A1 Mayer: what cash dominion is | Cash dominion is the term used to describe the mechanism where the proceeds of receivables collected into a borrower's collection accounts are swept to the financier and applied to repay the loan, as opposed to being transferred to the borrower's general trading accounts for its own use. | Mayer Brown MBitesize: Cash Dominion |
| A2 Mayer: day-one or springing | Cash dominion may be in place from day one or may be triggered on a springing basis (see later), depending on the commercial agreement between the financier and the borrower. | Mayer Brown MBitesize: Cash Dominion |
| A3 Mayer: springing until pre-agreed trigger | cash dominion does not apply from the start of the loan and instead the proceeds of receivables collected into the collection accounts are transferred to the borrower's general trading accounts … until a pre-agreed trigger event. Following the trigger event, cash dominion springs into place and the collected proceeds are swept to pay down the loan. | Mayer Brown MBitesize: Cash Dominion |
| A4 Mayer: common springing trigger | In our experience the most common trigger event for springing cash dominion is the earlier to occur of a breach of a headroom or availability threshold … and an "event of default". | Mayer Brown MBitesize: Cash Dominion |
| A5 Mayer: often daily sweep | swept from the collection accounts to an account of the financier (or agent in a syndicated deal). This is done on a frequent basis; often daily. | Mayer Brown MBitesize: Cash Dominion |
| A6 Rocky Brands: Cash Dominion / lockbox | Cash Dominion . Borrower's agreement to cause all proceeds of ABL Priority Collateral to be forwarded to a lockbox or deposited in a controlled account; provided that Agent will be permitted to exercise cash dominion during a Trigger Period (Cash Dominion). | Rocky Brands IR Ex. 10.1 (ex_222396.htm) |
| A7 Rocky Brands: Trigger Period (Dominion) | Trigger Period (Dominion) shall mean the period (a) commencing on any day that (i) an event of default occurs or (ii) Excess Availability has been less than the greater of (x) $11,250,000 or (y) 10.0% of the Line Cap for 3 consecutive business days; and (b) continuing until (i) no event of default has existed and (ii) during each of the preceding 30 consecutive days, Excess Availability has been more than the greater of (x) $11,250,000 or (y) 10.0% of the Line Cap. | Rocky Brands IR Ex. 10.1 (ex_222396.htm) |
| A8 Dollar General: sweep during Cash Dominion Trigger Period | During a Cash Dominion Trigger Period (as defined below), all amounts in controlled Concentration Accounts will be swept into a collection account (or accounts) maintained with the ABL Administrative Agent and used to repay borrowings under the ABL Facility | Dollar General / Family Dollar EX-99.B |
| A9 Dollar General: Cash Dominion Trigger Event floors | A Cash Dominion Trigger Event shall occur when a Specified Default … has occurred or Excess Availability either (x) for a period of five consecutive days is less than the greater of (a) 10.0% of the Line Cap and (b) $200.0 million or (y) is less than the greater of (a) 7.5% of the Line Cap and (b) $137.5 million. | Dollar General / Family Dollar EX-99.B |
| A10 Project Safari: daily sweep to agent | amounts held in such controlled accounts will be swept daily into concentration accounts under the control of the ABL Administrative Agent and, subject to a threshold amount to be mutually agreed, applied to the outstanding obligations under the ABL Facility. | Project Safari EX-99.(d)(4) |
| A11 Project Safari: Cash Dominion Trigger Event floors | Cash Dominion Trigger Event = (A) Specified Excess Availability is less than the greater of (a) 10% of the Line Cap and (b) $8 million for five consecutive business days or (B) a Specified Event of Default has occurred and is continuing. | Project Safari EX-99.(d)(4) |
| A12 Culp R20: Excess Availability 6.0 million Cash Dominion | Cash Dominion. Under the terms of the ABL Facility, if: (i) an event of default has occurred or (ii) excess borrowing availability under the ABL Facility (based on the lesser of $ 30.0 million and the borrowing base) (the "Excess Availability") falls below 6.0 million at such time, the Loan Parties will become subject to cash dominion … Dominion Period shall end when Excess Availability shall be equal to or greater than $ 6.0 million for a period of 60 consecutive days and no event of default is continuing. | Culp Inc. R20 (SEC EDGAR) |
| A13 OCC glossary: cash dominion full vs springing | Cash dominion: A control arrangement wherein the borrower's receivable receipts are sent by customers to a lockbox controlled by the lender. Under a full cash dominion arrangement, the bank controls the cash collections and applies the proceeds to the borrower's loan account before releasing any funds. Cash dominion relationships may also be springing. | OCC Comptroller's Handbook: Asset-Based Lending |
| A14 OCC: springing threshold | cash dominion may not be required unless excess availability falls below an established threshold. | OCC Comptroller's Handbook: Asset-Based Lending |
| A15 OCC: lockbox full vs springing dominion | Lockbox and Cash Dominion Arrangements … The bank may elect to exercise full dominion or springing dominion over the cash receipts. | OCC Comptroller's Handbook: Asset-Based Lending |
Sources (re-fetched 13 Sep 2026): Mayer Brown MBitesize Cash Dominion, Rocky Brands IR ex_222396.htm, Culp R20, Dollar General EX-99.B, Project Safari EX-99.(d)(4), OCC ABL handbook PDF.
Frequently asked questions
What is cash dominion in an ABL facility and when does it trigger?
Cash dominion routes customer AR to lender-controlled lockbox/collection accounts and sweeps them to repay the ABL revolver (Mayer Brown; OCC). It may be day-one or springing (Mayer Brown; OCC). Springing typically fires on availability/headroom breach or event of default (Mayer Brown). OCC: may not be required unless excess availability falls below an established threshold. Floors are deal-set (Rocky Brands; Culp).
What is the difference between day-one and springing cash dominion?
Mayer Brown states that cash dominion may be in place from day one or may be triggered on a springing basis. On a springing basis, cash dominion does not apply from the start of the loan; proceeds go to the borrower's general trading accounts until a pre-agreed trigger, then dominion springs into place and collected proceeds are swept to pay down the loan. OCC glossary: under full cash dominion the bank controls collections and applies proceeds to the loan account before releasing funds; under a springing arrangement, lockbox receipts are made available to the borrower until the bank reserves control if the borrower fails to comply.
What Excess Availability floors do filed ABL deals list for cash dominion?
Floors are credit-agreement-set. Rocky Brands' commitment letter Trigger Period (Dominion) starts if Excess Availability is less than the greater of $11,250,000 or 10.0% of the Line Cap for 3 consecutive business days (or an event of default). Culp R20: cash dominion if Excess Availability falls below 6.0 million (or an event of default); Dominion Period ends when Excess Availability is equal to or greater than $ 6.0 million for 60 consecutive days and no event of default. Dollar General EX-99.B and Project Safari EX-99.(d)(4) list different floors.
How does cash dominion work operationally when it is in effect?
Mayer Brown: when cash dominion is in effect, receivables proceeds are swept from the collection accounts to an account of the financier, often daily, then applied down a payment waterfall. OCC Lockbox and Cash Dominion Arrangements: customers are directed to send payments to a post office box / collateral deposit account; the bank may elect full dominion or springing dominion over cash receipts.
What does the OCC handbook say about springing cash dominion thresholds?
OCC says: "For example, cash dominion may not be required unless excess availability falls below an established threshold." The threshold itself is set in the credit agreement.
Related
- Before binding an ABL revolver, which AR lines are ineligible and which get carved back at term sheet?
- What is an ABL revolver unused-line fee and how does it relate to availability?
- What is a borrowing-base certificate and when must it be submitted?
- What is the difference between a field exam and monthly borrowing-base reporting?
- What is a letter of credit sublimit in an ABL revolver?
- What is the difference between a dilution reserve and ineligible AR?