Borrowing Base Capitalized Value Limit Clause Samples
The Borrowing Base Capitalized Value Limit clause sets a maximum value for certain assets when calculating the borrowing base in a financing arrangement. Typically, this clause restricts the amount of capitalized value—such as the book value of inventory, receivables, or other collateral—that can be included in the borrowing base calculation. For example, it may cap the recognized value of inventory at a percentage of its capitalized cost to prevent overstatement of available collateral. This clause ensures that lenders are protected from inflated asset values, thereby reducing credit risk and maintaining prudent lending standards.
Borrowing Base Capitalized Value Limit. As of the date of determination, without duplication, the lesser of the following amounts determined individually for each Borrowing Base Asset that is a LTAC, Rehab, ASC, MOB, ILF, ALF or SNF: (a) the Capitalized Value of such Borrowing Base Asset multiplied by fifty-five percent (55%), and (b) the Property Cost of such Borrowing Base Asset multiplied by fifty-five percent (55%), in each case, as most recently determined under this Agreement; provided, however, that twenty-four (24) months after the acquisition of such Borrowing Base Asset, the Borrowing Base Capitalized Value Limit for such Borrowing Base Asset shall be determined by the Capitalized Value of such Borrowing Base Asset multiplied by fifty-five percent (55%). The aggregate Borrowing Base Capitalized Value Limit for all Borrowing Base Assets shall be the sum of such calculations for all of the Borrowing Base Assets.
Borrowing Base Capitalized Value Limit. As of the date of determination, without duplication, the following amount determined individually for each Borrowing Base Asset that is a LTAC, Rehab, ASC, MOB, ILF, ALF or SNF: (a) the Capitalized Value of such Borrowing Base Asset multiplied by fifty-five percent (55%), and (b) for any such Borrowing Base Asset that has not been owned by Borrower or a Subsidiary Guarantor for eight (8) calendar quarters, the Property Cost of such Borrowing Base Asset multiplied by fifty-five percent (55%), in each case, as most recently determined under this Agreement. The aggregate Borrowing Base Capitalized Value Limit for all Borrowing Base Assets shall be the sum of such calculations for all of the Borrowing Base Assets.
Borrowing Base Capitalized Value Limit. As of the date of determination, without duplication, the following amount determined individually for each Borrowing Base Asset: (a) the Capitalized Value of such Borrowing Base Asset multiplied by (X) during any time prior to the first (1st) day of the Distributions Covenant Commencement Quarter, fifty-five percent (55%), and (Y) from and after the first (1st) day of the Distributions Covenant Commencement Quarter, sixty percent (60%), and (b) for any such Borrowing Base Asset that has not been owned by the Borrower or a Subsidiary thereof for eight (8) fiscal quarters, the Property Cost of such Borrowing Base Asset multiplied by (X) during any time prior to the first (1st) day of the Distributions Covenant Commencement Quarter, fifty-five percent (55%), and (Y) from and after the first (1st) day of the Distributions Covenant Commencement Quarter, sixty percent (60%), in each case, as most recently determined under this Agreement; provided, however, that the Borrowing Base Capitalized Value Limit attributable to a Borrowing Base Asset owned through an Approved JV shall be limited, on a pro rata basis, to the Borrower’s Equity Percentage in such Approved JV. The aggregate Borrowing Base Capitalized Value Limit for all Borrowing Base Assets shall be the sum of such calculations for all of the Borrowing Base Assets.
Borrowing Base Capitalized Value Limit. As of the date of determination, without duplication, the following amount determined individually for each Borrowing Base Asset: (a) the Capitalized Value of such Borrowing Base Asset multiplied by fifty-two and one-half percent (52.5%); provided, that, from and after the Distributions Covenant Commencement Quarter, such percentage shall be increased to fifty-five percent (55.0%), and (b) for any such Borrowing Base Asset that has not been owned by the Borrower or a Subsidiary thereof for eight (8) fiscal quarters, the Property Cost of such Borrowing Base Asset multiplied by fifty-two and one-half percent (52.5%); provided, that, from and after the Distributions Covenant Commencement Quarter, such percentage shall be increased to fifty-five percent (55.0%), in each case, as most recently determined under this Agreement; provided, however, that the Borrowing Base Capitalized Value Limit attributable to a Borrowing Base Asset owned through an Approved JV shall be limited, on a pro rata basis, to the Borrower’s Equity Percentage in such Approved JV. The aggregate Borrowing Base Capitalized Value Limit for all Borrowing Base Assets shall be the sum of such calculations for all of the Borrowing Base Assets.
Borrowing Base Capitalized Value Limit. As of the date of determination, without duplication, the following amount determined individually for each Borrowing Base Asset: (a) the Capitalized Value of such Borrowing Base Asset multiplied by fifty-five percent (55%), and (b) for any such Borrowing Base Asset that has not been owned by the Borrower or a Subsidiary thereof for eight (8) fiscal quarters, the Property Cost of such Borrowing Base Asset multiplied by fifty-five percent (55%), in each case, as most recently determined under this Agreement; provided, however, that the Borrowing Base Capitalized Value Limit attributable to a Borrowing Base Asset owned through an Approved JV shall be limited, on a pro rata basis, to the Borrower’s Equity Percentage in such Approved JV. The aggregate Borrowing Base Capitalized Value Limit for all Borrowing Base Assets shall be the sum of such calculations for all of the Borrowing Base Assets.”;