Borrowing Base Deficiency Payments Sample Clauses
The Borrowing Base Deficiency Payments clause requires a borrower to promptly address any shortfall when the outstanding loan amount exceeds the calculated borrowing base. In practice, this means that if the value of the collateral securing a loan decreases or if the borrowing base is otherwise reduced, the borrower must either repay the excess amount or provide additional collateral to restore compliance. This clause ensures that the lender's risk is managed by maintaining adequate collateral coverage throughout the life of the loan.
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Borrowing Base Deficiency Payments. (a) In addition to any other obligation of the Borrower to cure any Borrowing Base Deficiency pursuant to the terms of this Agreement, if, on any day prior to the Collection Date, any Borrowing Base Deficiency exists, then, subject to clauses (c) and (d) below, the Borrower shall eliminate such Borrowing Base Deficiency in its entirety within two (2) Business Days by effecting one or more (or any combination thereof) of the following actions in order to eliminate such Borrowing Base Deficiency as of such date of determination: (i) deposit cash in Dollars into the Principal Collection Subaccount, (ii) repay Advances Outstanding (together with any Breakage Fees in respect of the amount so prepaid), (iii) to the extent the use of proceeds, when received, of such sales, in conjunction with other actions, would eliminate such Borrowing Base Deficiency, sell Loan Assets in accordance with Section 2.07(a) below so long as (A) such Loan Assets are not sold for less than the greater of (1) the fair market value therefor or (2) an amount equal to the product of (x) the Assigned Value and (y) the Advance Rate therefor unless otherwise approved by the Administrative Agent in writing and in its sole discretion and (B) the proceeds of such sales are received no later than seven (7) Business Days after the occurrence of such Borrowing Base Deficiency (or such longer period requested by the Borrower to which the Administrative Agent has agreed in its sole discretion), (iv) Grant additional Eligible Loan Assets that are Specified Loan Assets and/or (ivv) subject to the approval of the Administrative Agent, in its sole discretion, ▇▇▇▇▇ additional Eligible Loan Assets (other than Specified Loan Assets).
(b) No later than 5:30 p.m. on the Business Day prior to the proposed repayment of Advances Outstanding or Grant of additional Eligible Loan Assets pursuant to Section 2.06(a), the Borrower (or the Servicer on its behalf) shall deliver (i) to the Administrative Agent (with a copy to the Collateral Agent and the Collateral Custodian) notice of such repayment or Grant and a duly completed Borrowing Base Certificate, updated to the date such repayment or Grant is being made and giving pro forma effect to such repayment or Grant, and (ii) to the Administrative Agent, if applicable, a description of any Eligible Loan Asset and each Obligor of such Eligible Loan Asset to be Granted and an updated Loan Asset Schedule. Any notice pertaining to any repayment or any Grant pursuant to ...
Borrowing Base Deficiency Payments. (a) In addition to any other obligation of the Borrower to cure any Borrowing Base Deficiency pursuant to the terms of this Agreement, if, on any day prior to the Collection Date, any Borrowing Base Deficiency exists, then the Borrower may eliminate such Borrowing Base Deficiency in its entirety by effecting one or more (or any combination thereof) of the following actions in order to eliminate such Borrowing Base Deficiency as of such date of determination: (i) deposit cash in United States dollars into the Principal Collection Subaccount, (ii) repay Advances (together with any Breakage Fees and all accrued and unpaid costs and expenses of the Administrative Agent, the Lender Agents and the Lenders, in each case in respect of the amount so prepaid), (iii) sell Eligible Loan Assets in accordance with Section 2.07, or (iv) during the Revolving Period, Pledge additional Eligible Loan Assets.
(b) No later than 2:00 p.m. on the Business Day prior to the proposed repayment of Advances or Pledge of additional Eligible Loan Assets pursuant to Section 2.06(a), the Borrower (or the Servicer on its behalf) shall deliver (i) to the Administrative Agent and Lender Agents (with a copy to the Collateral Agent, the Collateral Administrator and the Collateral Custodian), notice of such repayment or Pledge and a duly completed Borrowing Base Certificate, updated to the date such repayment or Pledge is being made and giving pro forma effect to such repayment or Pledge, and (ii) to the Administrative Agent, if applicable, a description of any Eligible Loan Asset and each Obligor of such Eligible Loan Asset to be Pledged and added to the updated Loan Asset Schedule. Any notice pertaining to any repayment or any Pledge pursuant to this Section 2.06 shall be irrevocable.
(c) Until such time as any Borrowing Base Deficiency has been cured in full and no other Event of Default or Unmatured Event of Default has occurred and is continuing, the Borrower shall not request the right to transfer (by sale, dividend, distribution or otherwise), and the Administrative Agent and Collateral Agent shall not grant the release of Lien or the transfer of any Eligible Loan Asset from the Collateral Portfolio.
Borrowing Base Deficiency Payments. (a) If, on any day prior to the Collection Date, any Borrowing Base Deficiency exists, then the Borrower shall eliminate such Borrowing Base Deficiency in its entirety within three (3) Business Days after the Borrower has actual knowledge or has received notice thereof from the Administrative Agent (or such later date as agreed to by the Administrative Agent in its sole discretion) by effecting one or more (or any combination thereof) of the following actions in order to eliminate such Borrowing Base Deficiency as of such date of determination: (i) deposit cash in Dollars into the Principal Collection Subaccount,
Borrowing Base Deficiency Payments. (a) In addition to any other obligation of the Borrower to cure any Borrowing Base Deficiency pursuant to the terms of this Agreement, if, on any day prior to the Collection Date, any Borrowing Base Deficiency exists, then the Borrower shall, within (5) five Business Days from the date of such Borrowing Base Deficiency, eliminate such Borrowing Base Deficiency, unless the Servicer has provided evidence satisfactory to the Agent, in its sole discretion, that the Borrower will eliminate such breach in its entirety by depositing cash into the Principal Collection Account, fifteen (15)
Borrowing Base Deficiency Payments. (a) If, prior to the Transition Date, on any date required for delivery of the Borrowing Base Certificate pursuant to Section 7.1(ix), the Borrowing Base Coverage Ratio is not in compliance with the requirement of Section 7.24.4(a) with respect to all the Credit Facilities (as calculated pursuant to Schedule 10), Borrowers shall within two (2) Business Days after such date make a principal payment in the amount of such deficiency to Administrative Agent, which amount shall be applied to the Revolving Credit Facility, to the extent such deficiency is attributable to assets of the Subsidiaries engaged in Continuing Operations, and otherwise to the Term Loan Facilities to be applied as provided in Section 2.7(b).
(b) If, after the Transition Date, on any date required for delivery of the Borrowing Base Certificate pursuant to Section 7.1(ix), the Borrowing Base Coverage Ratio is not in compliance with the requirement of Section 7.24.4(b) with respect to the Revolving Credit Facility (calculated pursuant to Schedule 11), Borrowers shall within two (2) Business Days after such date make a principal payment in the amount of such deficiency to Administrative Agent, which amount shall be applied to the Revolving Credit Facility.
(c) If, after the Transition Date, on any date required for delivery of the Borrowing Base Certificate pursuant to Section 7.1(ix), the Borrowing Base Coverage Ratio is not in compliance with the requirements of Sections 7.24.4(c) or (d), as applicable, with respect to the Term Loan Facilities (calculated pursuant to Schedule 12), Borrowers shall within two (2) Business Days after such date make a principal payment in the amount of such deficiency to Administrative Agent, which amount shall be applied to the Term Loan Facilities as provided in Section 2.7(b).
Borrowing Base Deficiency Payments. (a) If on any day prior to the Collection Date, any Borrowing Base Deficiency exists, then the Borrower shall, within five Business Days from the earlier of (x) the date of the Borrower or the Transferor acquiring knowledge of such failure and (y) the date of the Borrower or the Transferor receives written notice of such failure from the Administrative Agent, eliminate such Borrowing Base Deficiency in its entirety by effecting one or more (or any combination of items (i), (ii) or (iii) below) of the following actions in order to eliminate such Borrowing Base Deficiency: (i) deposit cash in United States dollars into the Principal Collection Account and/or Unfunded Exposure Account,
Borrowing Base Deficiency Payments. Notwithstanding anything to the contrary contained in this Section 3.01 or in any other provision in this Agreement, if, on any Business Day a Borrowing Base Deficiency shall exist, then, the Borrower shall remit to the Agent, prior to any Borrowing and in any event no later than the close of business of the Agent on the next succeeding Business Day, a payment (to be applied by the Agent to repay Loans allocated to Yield Periods selected by the Agent) in such amount as may be necessary to eliminate such Borrowing Base Deficiency. Reserved.