Minimum Borrowing Base Value Clause Samples

The Minimum Borrowing Base Value clause sets a required minimum value for the assets or collateral that support a loan or credit facility. In practice, this means the borrower must maintain a certain level of eligible assets—such as inventory or receivables—whose value is regularly assessed to ensure compliance. This clause ensures that the lender has sufficient security for the outstanding loan amount, thereby reducing the lender's risk if the borrower's financial position weakens.