Acceptance of Borrowing Base Properties Clause Samples
The Acceptance of Borrowing Base Properties clause defines the criteria and process by which certain assets or properties are approved to be included in the borrowing base for a loan or credit facility. Typically, this clause outlines the standards that properties must meet, such as valuation, legal compliance, and documentation requirements, before they can be counted toward the total value against which a borrower can draw funds. For example, a lender may require that properties be appraised by an independent third party and free of legal encumbrances. The core function of this clause is to ensure that only qualified, vetted assets are used to secure the loan, thereby protecting the lender from undue risk and maintaining the integrity of the borrowing base calculation.
Acceptance of Borrowing Base Properties. (a) Subject to compliance with the terms and conditions of Section 4.1, Agent has accepted the Properties listed on Schedule 1 as Borrowing Base Stabilized Properties and the Properties listed on Schedule 2 as Borrowing Base Development Properties. Hereafter, if Borrower desires that Lenders accept a Property as a Borrowing Base Property, Borrower shall so notify Agent in writing and Agent shall deliver a copy of such notice to each Lender. No Property will be evaluated by Lenders as a potential Borrowing Base Property unless Borrower delivers to Agent the following in form and substance acceptable to Agent:
(1) With respect to each proposed Borrowing Base Property:
(A) A copy of the most recent ALTA Owner's Policy of Title Insurance (or equivalent) ("Owner's Policy") and a commitment (not more than 90 days old) to issue an American Land Title Association extended coverage Lender's policy of title insurance (or equivalent) covering such Property and disclosing the identity of the fee titleholder thereto, and all matters of record;
(B) Copies of all documents of record reflected in Schedule B of the Owner's Policy and a copy of the most recent real estate tax ▇▇▇▇ and notice of assessment;
(C) A current or currently certified survey of such Property certified by a surveyor licensed in the applicable jurisdiction to have been prepared in accordance with the then effective Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys (or equivalent);
(D) A "Phase I" environmental assessment of such Property not more than 12 months old;
(E) A certificate from a licensed engineer or other professional satisfactory to Agent that such Property is not located in a Special Flood Hazard Area, as defined by the Federal Insurance Administration; and
(F) Such other documents with respect to such Property as Agent shall reasonably require.
(2) With respect to each proposed Borrowing Base Stabilized Property:
(A) An operating statement for such Property audited or certified by a representative of Borrower as being true and correct in all material respects and prepared in accordance with sound accounting principles for the previous two Fiscal Years, provided, that, with respect to any period such Property was not owned by Borrower, such information shall only be required to be delivered to the extent reasonably available to Borrower and such certification may be based upon the best of Borrower's knowledge;
(B) An engineering report for such Property not more than ...
Acceptance of Borrowing Base Properties. Subject to compliance with the terms and conditions of Section 4.01 and this Section 3.01, Lenders have accepted the properties listed on Schedule 1 as of the Closing Date as Borrowing Base Properties. The acceptance of the Assigned Mortgages as Borrowing Base Property is conditional, and each Assigned Mortgage shall only remain qualified as Borrowing Base Property so long as, (i) no default occurs under any of the loan documents which is not cured within any applicable cure period pertaining to the Assigned Mortgage which would permit acceleration of such loan, including, without limitation, failure to make any payments when due, breach of covenants, representations or warranties, breach of any guarantees pertaining to such loan, or the bankruptcy or insolvency of the borrower or any guarantor with respect to such loan, (ii) no dispute occurs involving the nature or enforceability of the applicable loan obligations, and (iii) no loss of lien priority occurs with respect to the applicable mortgage, whether due to attachments, judgments or otherwise. If any single Assigned Mortgage executed by AFP Partners, a California limited partnership ("AFP"), as mortgagor, shall be disqualified as a Borrowing Base Property pursuant to the preceding, then all other Assigned Mortgages executed by AFP, as mortgagor, shall be disqualified as Borrowing Base Property concurrently therewith. Upon disqualification of any Assigned Mortgage, the Borrowing Base shall be reduced accordingly and any outstanding principal balance of the Loans in excess of the Borrowing Base, after giving effect to such Assigned Mortgage disqualification, shall be immediately due and payable unless Borrower provides additional or replacement Borrowing Base Property (acceptable to Agent and Lenders in accordance with this Section 3.01)
Acceptance of Borrowing Base Properties. (a) Initial Borrowing Base Properties. As of the Closing Date, the Administrative Agent and the Lenders have approved for inclusion in calculations of the Borrowing Base the Subject Properties identified on Schedule 1.1A and the Borrowing Base Value attributable to each such Property as of such date (as set forth on Schedule 1.1A); provided that, on or prior to the Closing Date, the Administrative Agent and the Lenders shall have received (in electronic form, if feasible and acceptable to the Lenders), in form and substance reasonably satisfactory to the Administrative Agent, all of the documents required to be provided under Section 6.3 with respect to such Properties.
Acceptance of Borrowing Base Properties. 40 3.02 Release of Borrowing Base Properties........................... 42 3.03
Acceptance of Borrowing Base Properties