Periodic Reviews and Borrowing Base Determinations Clause Samples

Periodic Reviews and Borrowing Base Determinations. As of approximately January 1 and July 1 of each year, commencing January 1, 1998, through the Maturity Date, and at such other times as the Bank may determine, the Bank will perform a review of the Oil and Gas Properties and will determine the Borrowing Base, taking into account such factors as the Bank in its reasonable discretion deems appropriate. The Bank will give notice to Borrower (as of approximately 10 days prior to the effective date of any new determination of the Borrowing Base pursuant hereto), of the amount of the new Borrowing Base; provided that Borrower shall have the right, by giving notice to the Bank, to make an election to reduce the Borrowing Base to an amount less than the amount so determined by the Bank; provided further that, as to any Borrowing Base Period for which Borrower has so elected to reduce the Borrowing Base, not more than once during such Borrowing Base Period, Borrower shall have the right, by giving notice to the Bank, to elect to increase the Borrowing Base to an amount not greater than the Borrowing Base originally determined by the Bank for such Borrowing Base Period, so long as no Default has occurred and is continuing at the time of such election and Borrower pays to the Bank at that time the additional amount of the commitment fee payable pursuant to Section 2.08(a) above as if the increased Borrowing Base elected by Borrower had been in effect at all times from and after the first day of such Borrowing Base Period. If, at the time of any determination of the Borrowing Base or at any other time, the then-outstanding principal balance of all Advances plus the face amount of all Letters of Credit outstanding hereunder exceeds the Commitment Amount, Borrower shall, within 30 days of any such determination: (a) mortgage, by instruments satisfactory in form and substance to the Bank, sufficient additional available assets or properties owned by Borrower and satisfactory to the Bank to induce the Bank to make a re-determination of the Borrowing Base which causes the Commitment Amount to be increased by an amount sufficient to eliminate such excess; or (b) prepay the outstanding principal balance of the Loan in an amount at least equal to the amount of such excess; or (c) commence (and thereafter continue) an amortization schedule under which Borrower repays the Loan in an amount at least equal to the excess in six equal monthly principal installments on the last Business Day of each calendar month, which amounts sha...