Borrowing Base Exceeded Clause Samples
The 'Borrowing Base Exceeded' clause defines the lender's rights and the borrower's obligations when the amount of outstanding loans surpasses the agreed borrowing base, which is typically calculated based on the value of certain collateral such as inventory or receivables. In practice, this clause may require the borrower to immediately repay the excess amount or provide additional collateral to restore compliance. Its core function is to protect the lender by ensuring that the loan remains adequately secured and to promptly address situations where the borrower's borrowing capacity has been exceeded.
Borrowing Base Exceeded. Whenever the outstanding principal balance of Revolving Credit Loans and Swing Loans by the Banks plus Letters of Credit Outstanding exceed the Borrowing Base, the Borrower shall make, within one (1) Business Day after the Borrower learns of such excess and whether or not the Administrative Agent has given notice to such effect, a mandatory prepayment of principal equal to the excess of the Revolving Facility Usage over the Borrowing Base, together with accrued interest on such principal amount.
Borrowing Base Exceeded. At any time when the Borrowing Base is applicable, whenever the outstanding principal balance of all loans exceed the Borrowing Base, Borrower shall immediately pay to Bank the excess of the outstanding principal balance of the loans over the Borrowing Base.
Borrowing Base Exceeded. Whenever the US Revolving Facility Usage exceeds the US Borrowing Base or the Canadian Revolving Facility Usage exceeds the Canadian Borrowing Base, the applicable Borrowers shall make, within one (1) Business Day after any Borrower learns of such excess and whether or not the Administrative Agent has given notice to such effect, a mandatory prepayment of principal to be applied to the Revolving Credit Loans equal to the excess, together with accrued interest on such principal amount.
Borrowing Base Exceeded. Whenever the Revolving Facility Usage exceeds the Borrowing Base, the Borrower shall make, within ten (10) Business Days after the Borrower learns of such excess and whether or not the Agent has given notice to such effect, a mandatory prepayment of principal equal to the excess of the Revolving Facility Usage over the Borrowing Base, together with accrued interest on such principal amount at the default rate set forth in Section 4.3.
Borrowing Base Exceeded. Whenever the outstanding principal balance of Revolving Credit Loans by the Banks plus the Letter of Credit Outstandings exceed the Borrowing Base, the Borrower shall make, within five (5) Business Days after the Borrower learns of such excess and whether or not the Agent has given notice to such effect, a mandatory prepayment of principal equal to the excess of the outstanding principal balance of the Revolving Credit Loans over the Borrowing Base, together with accrued interest on such principal amount.
Borrowing Base Exceeded. (1) If at any time the Effective Amount of all Revolving Loans and L/C Obligations exceeds the Borrowing Base then in effect, Borrowers shall immediately, and without notice or demand, prepay the outstanding principal amount of the Revolving Loans and Cash Collateralize the L/C Obligations in an amount equal to the applicable excess in accordance with Section 2.07(b)(i).
(2) If at any time the sum of (A) the Effective Amount of all Revolving Loans and L/C Obligations, plus (B) the outstanding amount of any Receivables Facility Indebtedness as of such date exceeds the Borrowing Base (as defined in the Indenture), Borrowers shall immediately, and without notice or demand, prepay the outstanding principal amount of the Revolving Loans and Cash Collateralize the L/C Obligations in an amount equal to the applicable excess in accordance with Section 2.07(b)(i).
Borrowing Base Exceeded. In the event that at any time the Revolving Facility Usage shall exceed the Borrowing Base, the Borrower shall immediately make a mandatory payment of principal to the Agent in an amount equal to or greater than such amount as shall be necessary to cause the Revolving Facility Usage to be less than the Borrowing Base, and the Agent shall apply such payment to the Revolving Credit Loans of the Banks based upon their Revolving Credit Ratable Share.
Borrowing Base Exceeded. Whenever the outstanding principal balance of the Loans plus the Letters of Credit Outstanding exceeds the Borrowing Base, the Borrower shall make, within one (1) Business Day after the Borrower learns of such excess and whether or not the Agent has given notice to such effect, a mandatory prepayment of principal equal to the excess of the outstanding principal balance of the Loans over the Borrowing Base, together with accrued interest on such principal amount.
Borrowing Base Exceeded. If it should be determined by the Bank ----------------------- at any time and from time to time that the principal amount of the Advances and the Rate Hedging Obligations exceeds the Borrowing Base, the Company shall promptly, in addition to all payments of principal and interest required to be paid on the Note, prepay the Note in an amount by which, in the determination of the Bank, such aggregate principal amount outstanding exceeds the Borrowing Base. If any such prepayment would be in excess of the outstanding amount of the Loans, the Company shall deliver cash collateral to the Bank to secure the outstanding Letters of Credit and the Rate Hedging Obligations in the amount of such excess which is greater than the outstanding Loans and the Company hereby grants to the Bank a first priority lien and security interest in such collateral, and all such cash collateral shall be under the sole and exclusive control of the Bank. All determinations made pursuant to this Section 4.1(c) shall be made by the Bank and shall be conclusively binding on the parties.
Borrowing Base Exceeded. If it should be determined by the Agent at any time and from time to time that the principal amount of the Aggregate Outstanding Credit Exposure exceeds the Borrowing Base, the Company shall either (i) promptly provide additional collateral to the Agent, for the benefit of the Lenders, having a value and quality satisfactory to the Lenders in their sole discretion, or (ii) in addition to all payments of principal and interest required to be paid on the Notes, prepay the Notes in an amount by which, in the determination of the Agent, such aggregate principal amount outstanding exceeds the Borrowing Base, which payment shall be made either (A) in full within thirty (30) days after demand by the Agent, or (B) in three (3) equal monthly installments, commencing on the date of demand for payment by the Agent, provided, that, the entire amount of such excess must be repaid prior to the next scheduled determination date of the Borrowing Base pursuant to Section 2.6. If any such prepayment would be in excess of the outstanding amount of the Loans, the Company shall deliver cash collateral to the Agent to secure the outstanding Letters of Credit in the amount of such excess which is greater than the outstanding Loans and the Company hereby grants to the Agent a first priority lien and security interest in such collateral, and all such cash collateral shall be under the sole and exclusive control of the Agent. All determinations made pursuant to this Section 4.1(c) shall be made by the Agent and shall be conclusively binding on the parties.