Maximum Availability Overadvance Sample Clauses
The Maximum Availability Overadvance clause sets a limit on the amount by which a borrower can exceed their borrowing base or credit limit under a loan agreement. In practice, this clause allows the lender to temporarily advance funds beyond the standard borrowing base, but only up to a specified maximum amount or percentage. This mechanism provides flexibility for the borrower to access additional funds in exceptional circumstances, while protecting the lender by capping the potential overexposure and managing credit risk.
Maximum Availability Overadvance. If at any time the aggregate principal amount of all outstanding Loans together with all other Total Unsecured Indebtedness exceeds the Maximum Availability, the Borrower shall within five (5) days of the Borrower obtaining knowledge of the occurrence of any such excess, deliver to the Administrative Agent for prompt distribution to each Lender a written plan to eliminate such excess. Such excess shall be paid (unless otherwise eliminated) within 15 days of the Borrower obtaining knowledge of the occurrence thereof or by the date specified in the Borrower’s written plan to the extent such plan is acceptable to all of the Lenders. Notwithstanding the foregoing, to the extent such excess was caused by a change in the Applicable Mortgage Constant and the Applicable Mortgage Constant exceeds 14% for 14 consecutive days, then, until the date that the Applicable Mortgage Constant falls below 14%, the Applicable Mortgage Constant for purposes of this Section shall be deemed to be an average of the Applicable Mortgage Constant for each day determined for the 30 day period ending on such date of determination.
Maximum Availability Overadvance. (a) Notwithstanding anything in this Agreement to the contrary, the Lender shall not be obligated to make any Loans to or on behalf of the Borrower, and the Lender shall not be obligated to issue any Letters of Credit for the account of the Borrower hereunder if, after giving effect to any such transactions, the aggregate outstanding principal balance of all of the Loans at such time plus the aggregate stated amount of all outstanding Letters of Credit at such time shall exceed the amount of the Export-Related Borrowing Base as then in effect.
(b) In the event that the aggregate principal balance of any of the Loans outstanding at any one time or the aggregate stated amount of any of the Letters of Credit outstanding at any one time shall exceed any of the applicable limits specified in Section 2.01(a) or (b) hereof or any applicable limit specified in paragraph (a) of this Section 2.04, Borrower shall, immediately upon Borrower's receipt of notice thereof from Lender or the Borrower's otherwise acquiring knowledge thereof, prepay such Loans or cause the early cancellation of such Letters of Credit to the extent necessary to eliminate such excess.
(c) In the event that the aggregate principal balance of any of the Loans outstanding at any one time or the aggregate stated amount of any of the Letters of Credit outstanding at any one time shall exceed any of the applicable limits specified in Section 2.01(a) or (b) above or any applicable limit specified in paragraph (a) of this Section 2.04, such excess nevertheless shall constitute Loans or Letters of Credit (as the case may be) for all purposes of this Agreement and the other Credit Documents and shall be entitled to all benefits and security of this Agreement and the other Credit Documents.