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Common use of Collateral Deficiency Clause in Contracts

Collateral Deficiency. Should the unpaid outstanding principal balance of the Note plus the unfunded portion of outstanding Letters of Credit issued pursuant hereto at any time prior to the Conversion Date be greater than the Revolving Credit Borrowing Base in effect at such time, the Bank may notify the Borrowers in writing of the deficiency. Within fifteen (15) days from and after the date of any such deficiency notice the Borrowers shall notify the Bank in writing of their election to: (a) Make a prepayment upon the Note in an amount sufficient to reduce the unpaid principal amount of the Note to an amount equal to or less than the amount of the Revolving Credit Borrowing Base; (b) Make mandatory equal monthly principal prepayments on the Note due on the next six (6) successive monthly interest installment due dates on the Note equal in an aggregate amount that will reduce the outstanding principal balance of the Note to the projected Revolving Credit Borrowing Base as of the next immediate semi-annual redetermination thereof in accordance with the provisions of Section 4.1(a) hereof; or (c) Convert the then outstanding principal balance of the Note to the five (5) year term loan contemplated by Section 2.2 hereof, commencing as of the last day of the next succeeding calendar month. If the Borrowers shall have elected to make a prepayment on the Note under Section 4.2(a) hereof, such prepayment shall be due within fifteen (15) days after the Borrowers shall have notified the Bank of such election, and the prepayment shall be applied at the Bank's option, to the principal payments of the Note in inverse order of maturity. If Borrowers shall elect to execute and deliver one or more supplemental oil and gas mortgages and deeds of trust to the Bank under Section 4.2(b) hereof, the Borrowers shall provide the Bank with descriptions of the additional properties to be mortgaged (together with any title opinions, current valuations and engineering reports applicable thereto which may be requested by the Bank) at the time of the Borrowers notice of such election and shall execute, acknowledge and deliver to the Bank the appropriate supplemental mortgages and deeds of trust within five (5) Business Days after such collateral documents shall be tendered to the Borrowers by the Bank for execution, all in compliance with the provisions of clauses (i), (ii) and (iii) of subsection 3.1(a) above.

Appears in 1 contract

Samples: Revolving Credit and Term Loan Agreement (Equity Compression Services Corp)

Collateral Deficiency. Should the unpaid outstanding principal balance of the Note plus Senior Obligations (including the unfunded portion of outstanding Letters of Credit issued by BOK or other Banks pursuant hereto at any time prior to the Conversion Date hereto) be greater than the Revolving Credit Borrowing Base in effect at such time, the Bank may Collateral Agent shall notify the Borrowers in writing of the existence and amount of such deficiency. Within fifteen (15) days from and after the date of any such deficiency notice the Borrowers shall notify the Bank Collateral Agent in writing of their election to: (a) Make a prepayment ratable prepayments upon the Bank Note and the Senior Notes to the extent of such deficiency (unless the Noteholders of the Senior Notes elect not to take such prepayment pursuant to paragraph 4(B)(ii) of the Senior Note Purchase Agreement) in an amount sufficient to reduce the unpaid principal amount of the Note Senior Obligations to an amount equal to or less than the amount of the Revolving Credit Borrowing Base;; or (b) Make ratable mandatory equal monthly principal prepayments on the Bank Note and Senior Notes to the extent of such deficiency (unless the Noteholders of the Senior Notes elect not to take such prepayment pursuant to paragraph 4(B)(ii) of the Senior Note Purchase Agreement) due on the next six (6) successive monthly interest installment due dates on the Bank Note equal in an aggregate amount that will reduce the outstanding principal balance of the Note Senior Obligations to the projected Revolving Credit Borrowing Base as of the next immediate semi-annual redetermination thereof of the Oil and Gas Collateral Borrowing Base in accordance with the provisions of Section Sections 2.4 and 4.1(a) hereof; or . All of prepayments made pursuant to paragraphs (ca) Convert the then outstanding principal balance and/or (b) of the Note this Section 4.2 with respect to the five (5) year term loan contemplated by Section 2.2 hereof, commencing as of Bank Note shall be made to the last day of the next succeeding calendar monthAdministrative Agent. If the Borrowers shall have elected to make a prepayment on the Note under Section 4.2(a) hereof, such prepayment shall be due within fifteen (15) days after the Borrowers shall have notified the Bank Collateral Agent of such election, and the prepayment shall be applied at the Bank's option, to the principal payments of the Note in inverse order of maturity. If Borrowers shall elect to execute and deliver one or more supplemental oil and gas mortgages and deeds of trust to the Bank under Section 4.2(b) hereof, the Borrowers shall provide the Bank with descriptions of the additional properties to be mortgaged (together with any title opinions, current valuations and engineering reports applicable thereto which may be requested by the Bank) at the time of the Borrowers notice of such election and shall execute, acknowledge and deliver to the Bank the appropriate supplemental mortgages and deeds of trust within five (5) Business Days after such collateral documents shall be tendered to the Borrowers by the Bank for execution, all in compliance with the provisions of clauses (i), (ii) and (iii) of subsection 3.1(a) above.

Appears in 1 contract

Samples: Revolving Credit and Term Loan Agreement (Equity Compression Services Corp)

Collateral Deficiency. Should the aggregate unpaid outstanding principal balance of the Convertible Note plus the unfunded portion (including outstanding portions of outstanding unexpired Letters of Credit issued pursuant hereto Credit) at any time prior to the Conversion Date be greater than the Revolving Credit Collateral Borrowing Base in effect at such time, the Bank Administrative Agent may notify the Borrowers in writing of the deficiency. Within fifteen ten (1510) days from and after the date of any such deficiency notice the Borrowers shall notify the Bank Administrative Agent in writing of their its election to: (a) Make a cash prepayment upon the Convertible Note in an amount sufficient to reduce the sum of the unpaid principal amount of the Convertible Note plus outstanding Letters of Credit to an amount equal to or less than the amount of the Revolving Credit Collateral Borrowing Base; (b) Make mandatory equal Adjust upward the monthly principal prepayments installments due on the Convertible Note due on for the next six (6) successive monthly interest installment due dates on the Note equal in payments to an aggregate amount that will reduce the sum of the outstanding principal balance of the Convertible Note plus outstanding Letters of Credit to the projected Revolving Credit Collateral Borrowing Base as of the next immediate semi-annual redetermination thereof in accordance with the provisions of Section 4.1(a3.1(a) hereof; or (c) Convert the then portion of the outstanding principal balance of the Convertible Note in compliance with the Collateral Borrowing Base to the seventy-two (72) month term payout provisions of Sections 2.1 and 2.2 hereof with the excess principal balance of the Convertible Note to be paid in accordance with the five provisions of clause (5b) year term loan contemplated by Section 2.2 hereof, commencing as of the last day of the next succeeding calendar monthhereof above. If the Borrowers shall have elected to make a prepayment on the Convertible Note under Section 4.2(a3.2(a) hereof, such prepayment shall be due within fifteen five (155) days after the Borrowers shall have notified the Bank Administrative Agent of such election, and the prepayment shall be applied applied, at the BankAdministrative Agent's option, to the principal payments of the Convertible Note in inverse order of maturity. If Borrowers shall elect to execute and deliver one or more supplemental oil and gas mortgages and deeds of trust increase the Convertible Note monthly principal payments due to the Bank Banks under Section 4.2(b3.2(b) hereof, the Borrowers Administrative Agent shall provide roll forward its then most current engineering determination and determine the Bank with descriptions of projected Collateral Borrowing Base for the additional properties to be mortgaged next successive determination date (together with any title opinions, current valuations and engineering reports applicable thereto which either March 31 or September 30 as the case may be requested by the Bank) at the time of the Borrowers notice of such election and shall execute, acknowledge and deliver to the Bank the appropriate supplemental mortgages and deeds of trust within five (5) Business Days after such collateral documents shall be tendered to the Borrowers by the Bank for execution, all in compliance with the provisions of clauses (ibe), (ii) and (iii) of subsection 3.1(a) above.

Appears in 1 contract

Samples: Revolving Credit and Term Loan Agreement (Middle Bay Oil Co Inc)

Collateral Deficiency. Should the unpaid outstanding principal balance aggregate amount of the Note plus the all Line Advances made and unfunded portion of outstanding Letters of Credit issued pursuant hereto under the Line Commitment at any time prior to maturity of the Conversion Date Line Note be greater than the Revolving Credit Collateral Borrowing Base in effect at such time, the Bank may notify the Borrowers Borrower in writing of the deficiency. Within fifteen (15) days from and after deficiency and, at the date of any such deficiency notice Bank's election, require the Borrowers shall notify the Bank in writing of their election Borrower to: (a) Make a prepayment upon the Line Note in an amount sufficient to reduce the unpaid principal aggregate amount of all Line Advances made under the Note Line Commitment to an amount equal to or less than the amount of the Revolving Credit Collateral Borrowing Base;; or (b) Make mandatory equal monthly principal prepayments on the Line Note due on the next six (6) successive monthly interest installment due dates on the Line Note equal in an aggregate amount that will reduce the outstanding principal balance of the Line Note to the projected Revolving Credit Collateral Borrowing Base as of the next immediate semi-annual redetermination thereof in accordance with the provisions of Section 4.1(a3.1(a) hereof; or (c) Convert the then outstanding principal balance of the Note Execute and deliver to the five Bank one or more supplemental mortgages, deeds of trust, security agreements or pledges encumbering other properties or assets in form and substance satisfactory to the Bank and its counsel as additional security for the Line Note (5and all other Indebtedness) year term loan contemplated to the extent such properties are acceptable to the Bank and of such value, as determined by Section 2.2 hereofthe Bank, commencing as that the aggregate amount of all Line Advances made under the last day of Line Note will not exceed the next succeeding calendar monthCollateral Borrowing Base in conformance with the Bank's then applicable energy lending and engineering/evaluation policies and procedures. If the Borrowers Bank shall have elected to make require a prepayment on the Line Note under Section 4.2(a3.3(a) hereof, such prepayment shall be due within fifteen (15) days after the Borrowers Bank shall have notified the Bank Borrower of such election, and the prepayment shall be applied at the Bank's option, to the principal payments of the Line Note in inverse order of maturity. If Borrowers the Bank shall elect to execute require execution and deliver delivery one or more supplemental oil and gas mortgages and deeds of trust to the Bank under Section 4.2(b3.3(c) hereof, the Borrowers Borrower shall provide the Bank with descriptions of the additional addi­tional properties to be mortgaged (together with any title opinions, current valuations and engineering engineer­ing reports applicable thereto which may be requested by the Bank) at the time of the Borrowers Borrower's notice of such election and shall execute, acknowledge acknowl­edge and deliver to the Bank the appropriate supplemental mortgages and deeds of trust within five ten (510) Business Days days after such collateral documents shall be tendered to the Borrowers Borrower by the Bank for executionexecution thereby, all in compliance with the provisions of clauses (i), (ii) and (iii) of subsection 3.1(a3.1(b) above.

Appears in 1 contract

Samples: Credit Agreement (Arena Resources Inc)