Common use of Borrowing Base Reductions Clause in Contracts

Borrowing Base Reductions. (a) At the time of any periodic or special redetermination of the Borrowing Base, Lenders reserve the right to establish an amount (the “Monthly Reduction Amount”) by which the Borrowing Base shall be automatically reduced effective on the first day of each successive calendar month until the next Borrowing Base redetermination. Lenders’ determination of the Monthly Reduction Amount shall be made in accordance with the standards specified in Section 4.01 hereof and the procedures specified in Section 4.04 hereof. Initially, the Monthly Reduction Amount will be set at zero dollars ($0). If the Total Outstandings shall exceed the Borrowing Base solely because of the reduction of the Borrowing Base by the Monthly Reduction Amount, Borrower shall promptly make a single lump sum payment in an amount sufficient to reduce the Total Outstandings to or below the Borrowing Base.

Borrowing Base Reductions. (ai) At the time of any periodic Scheduled Redetermination or special redetermination of the Borrowing BaseInterim Redetermination, Lenders reserve the right to establish an amount (the “"Monthly Reduction Amount”") by which the Borrowing Base shall be automatically reduced effective on the first day of each successive calendar month until the next Borrowing Base redetermination. Lenders’ ' determination of the Monthly Reduction Amount shall be made in accordance with the standards specified in Section 4.01 2.07(a) hereof and the procedures specified in Section 4.04 2.07(c) hereof. Initially, the Monthly Reduction Amount will be set at zero dollars ($0). If the Total Outstandings shall exceed the a Borrowing Base Deficiency exists solely because of the reduction of the Borrowing Base by the Monthly Reduction Amount, Borrower shall promptly make a single lump sum payment in an amount sufficient equal to reduce the Total Outstandings to or below the Borrowing BaseBase Deficiency.