Calculation of Borrowing Base Availability Clause Samples
The "Calculation of Borrowing Base Availability" clause defines how the maximum amount a borrower can draw under a credit facility is determined at any given time. Typically, this involves assessing the value of certain assets—such as accounts receivable or inventory—against specified eligibility criteria and applying agreed-upon advance rates or discounts. The clause ensures that the lender's risk is managed by tying the amount available to borrow to the value of the borrower's qualifying assets, thereby preventing over-advancement and protecting the lender's collateral position.
Calculation of Borrowing Base Availability. The Borrower’s Borrowing Base Availability, as of __________ __, 20__, is as follows:
A. Revolving Credit Loan Commitments $__________________
B. Current Outstanding Balances on Revolving Credit Loans and Swingline Loans $__________________
C. Current Outstanding Balances on other “senior securities representing indebtedness” (as such term is used in the 1940 Act), if any $_________________
D. Borrowing Base Availability (lesser of (i) line ▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇ ▇▇ ▇▇ (▇▇) line 2A minus line 2B) $__________________
E. Requested Advance (if any) $__________________
Calculation of Borrowing Base Availability. The Borrower’s Borrowing Base Availability, as of, ___________ __, 20__, is as follows:
A. Revolving Credit Loan Commitments $____________
B. Current Outstanding Balances on Revolving Credit Loans and Swingline Loans $____________
C. Current Outstanding Balances on other “senior securities representing indebtedness” (as such term is used in the 1940 Act), if any $____________
D. Borrowing Base Availability (lesser of (i) line IB minus line 2B and line 2C or (ii) line 2A minus line 2B) $____________
E. Requested Advance (if any) $____________
Calculation of Borrowing Base Availability. The Borrower’s Borrowing Base Availability, as of __________ __, 20__, is as follows:
A. Revolving Credit Loan Commitments $__________________
B. Current Outstanding Balances on Revolving $__________________ Credit Loans and Swingline Loans
C. Current Outstanding Balances on other $_________________ “senior securities” (as such term is used in the 1940 Act), if any
D. Borrowing Base Availability $__________________ (lesser of (i) line 1▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇ ▇▇ ▇▇
Calculation of Borrowing Base Availability. The Borrower’s Borrowing Base Availability, as of ___, 20___, is as follows:
A. Revolving Credit Loan Commitments $
B. Current Outstanding Balances on Revolving Credit Loans and Swingline Loans $
C. Current Outstanding Balances on other “senior securities representing indebtedness” (as such term is used in the 1940 Act), if any $
D. Borrowing Base Availability (lesser of (i) line ▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇ ▇▇ ▇▇ (▇▇) line 2A minus line 2B) $
E. Requested Advance (if any) $