Increase to Borrowing Base and Commitment Sample Clauses

The "Increase to Borrowing Base and Commitment" clause allows for adjustments to the maximum amount a borrower can access under a credit facility, as well as the lender's commitment to provide those funds. In practice, this clause outlines the process by which the borrowing base—often tied to the value of certain assets like inventory or receivables—can be increased, and specifies the conditions or approvals required for such an increase. Its core function is to provide flexibility for the borrower to access additional funds as their needs or asset base grow, while ensuring the lender retains control over the terms and risk exposure of the facility.