BORROWING BASE FORMULA Sample Clauses

The Borrowing Base Formula clause defines the method for calculating the maximum amount a borrower can draw under a credit facility, based on the value of specified assets such as accounts receivable, inventory, or other collateral. Typically, the formula applies predetermined advance rates to eligible assets, with certain exclusions or adjustments for ineligible items or concentration limits. This clause ensures that the lender’s risk is managed by tying the loan availability to the fluctuating value of the borrower’s assets, thereby protecting the lender and providing a clear framework for determining borrowing capacity.
BORROWING BASE FORMULA. The Borrowing Base Formula is equal to eighty percent (80%) of “Eligible Accounts Receivable”, plus fifty percent (50%) of “Eligible Inventory” and plus $300,000.00. “Eligible Accounts Receivable” shall mean accounts owned by Borrower subject to a first security interest in favor of ▇▇▇▇▇▇▇ that are acceptable and approved by ▇▇▇▇▇▇▇ from time to time as accounts receivable
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BORROWING BASE FORMULA. The Loans shall be extended and maintained upon the Borrowing Base formula. The total outstandings under this Agreement, including any requested borrowings, must either be equal to or less than the amount determined each month and before each borrowing to be the Borrower's Borrowing Base formula up to a limit of $4,000,000.00. The borrowings are contingent upon the Bank's receipt of the most current monthly aging of accounts receivable, the most current monthly inventory report and Borrowing Base Certificate of the
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BORROWING BASE FORMULA. Funds shall be advanced under the Line of Credit according to a borrowing base formula, as determined by Lender, on a monthly basis, defined as follows: the lesser of (a) $5,000,000.00 or up to (b) Eighty percent (80%) of eligible accounts receivable, subject to satisfactory accounts receivable audit to be performed by Lender minus the sum of (i) the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) and (ii) the outstanding under the Foreign Exchange Sublimit. Eligible accounts receivable shall include, but not be limited to, those accounts outstanding less than 90 days from the date of invoice, excluding foreign, government, contra, and intercompany accounts; and exclude accounts wherein 50% or more of the account is outstanding more than 90 days from the date of invoice. Except for specific projects pre-approved by Lender with an increased concentration limit, any account which alone exceeds 25% of total accounts will be ineligible to the extent said account exceeds 25% of total accounts. Also exclude any credit balances which are aged past 90 days. Also ineligible are any accounts which Lender in its sole judgment excludes for valid credit reasons. Notwithstanding the foregoing, upon Borrower's election to advance under the Line of Credit, Borrower acknowledges and agrees that Lender shall transfer the loan to its Commercial Finance Division. Any such advance request shall be made approximately 45 days to borrowing to allow for an audit of Borrower's accounts receivable. Borrower's deposit account will be debited for the audit expense and a notification will be mailed to Borrower.
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BORROWING BASE FORMULA. Advances on the Receivables Financing Note will be limited to a Borrowing Base Formula of 75% of the adjusted contract balances derived from accepted Eligible Contract balances (the "Borrowing Base"). To calculate such Borrowing Base, the principal balance(s) of any accepted contracts which allow a per lot pro rata release will first be reduced/adjusted as provided in subparagraph 2, below. Subject to all other requirements, conditions, and limits in this Exhibit and the Agreement, and provided no Event of Default by the Borrower under the Agreement has occurred, the Borrower may request advances on the Receivables Financing Note up to the Borrowing Base. For example, if the aggregate adjusted contract balance is $1,000,000, the Borrower could, at that date, have a maximum aggregate of $750,000 advanced on the Receivables Financing Note.
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BORROWING BASE FORMULA. 2.1 Advances under the Note shall be limited to 70% of eligible valid and true accounts receivable of Borrower due for less than 90 days from the date of the invoice. 2.2 Ineligible receivables shall include but not be limited to (i) foreign accounts receivables and (ii) amounts due from affiliates and subsidiaries, or (iii) receivables which are offset by a liability or debt or payable owed by the Borrower to the same account vendor or company, and (iv) government based or affiliated accounts receivables. 2.3 The Borrower must provide a monthly borrowing base certificate in form and content acceptable to the Bank which must be certified to be true, accurate and correct by officers of the Borrower.
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BORROWING BASE FORMULA. The term "Borrowing Base" shall mean, as of any date on which the amount thereof shall be determined (the "Determination Date"), the aggregate of:
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BORROWING BASE FORMULA. On the tenth day of each calendar month during the term of the Facility (or the next Business Day, if such day falls on other than a Business Day), GAC shall complete and submit to Bank and GECC a Borrowing Base Certificate in the form of Exhibit B1 hereto indicating, among other things, the aggregate average "Black Book" wholesale value of its Eligible Inventory and the number of units comprising such inventory. Subject at all times to the unused portion of Limit, GAC may request Revolving Loans under the Facility according to a borrowing base advance formula that limits any requested Revolving Loan to a maximum amount equal to fifty percent (50%) of the aggregate average "Black Book" wholesale value of such Eligible Inventory plus $400 per unit for reconditioning expense.
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BORROWING BASE FORMULA 
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Related to BORROWING BASE FORMULA

  • Borrowing Base Agent shall have received evidence from Borrowers that the aggregate amount of Eligible Receivables and Eligible Inventory is sufficient in value and amount to support Advances in the amount requested by Borrowers on the Closing Date;

  • Borrowing Base Report The Agent shall have received from the Borrower the initial Borrowing Base Report dated as of the Closing Date.

  • Borrowing Base Reports Within thirty (30) days after the last day of each month, aged listings of accounts receivable and accounts payable (by invoice date) (the “Borrowing Base Reports”);

  • Calculation of Borrowing Base For purposes of this Agreement, the “Borrowing Base” shall be determined, as at any date of determination, as the sum of the Advance Rates of the Value of each Portfolio Investment (excluding any Cash Collateral held by the Administrative Agent pursuant to Section 2.05(k) or the last paragraph of Section 2.09(a)); provided that: (a) the Advance Rate applicable to that portion of the aggregate Value of the Portfolio Investments in a consolidated group of corporations or other entities (collectively, a “Consolidated Group”), in accordance with GAAP, that exceeds 10% of Shareholders’ Equity of the Borrower (which, for purposes of this calculation shall exclude the aggregate amount of investments in, and advances to, Financing Subsidiaries) shall be 50% of the Advance Rate otherwise applicable; provided that, with respect to the Portfolio Investments in a single Consolidated Group designated by the Borrower to the Administrative Agent such 10% figure shall be increased to 12.5%; (b) the Advance Rate applicable to that portion of the aggregate Value of the Portfolio Investments of all issuers in a Consolidated Group exceeding 20% of Shareholders’ Equity of the Borrower (which, for purposes of this calculation shall exclude the aggregate amount of investments in, and advances to, Financing Subsidiaries) shall be 0%; (c) the Advance Rate applicable to that portion of the aggregate Value of the Portfolio Investments in any single Industry Classification Group that exceeds 20% of Shareholders’ Equity of the Borrower (which for purposes of this calculation shall exclude the aggregate amount of investments in, and advances to, Financing Subsidiaries) shall be 0%; provided that, with respect to the Portfolio Investments in a single Industry Classification Group from time to time designated by the Borrower to the Administrative Agent such 20% figure shall be increased to 30% and, accordingly, only to the extent that the Value for such single Industry Classification Group exceeds 30% of the Shareholders’ Equity shall the Advance Rate applicable to such excess Value be 0%; (d) no Portfolio Investment may be included in the Borrowing Base unless the Collateral Agent maintains a first priority, perfected Lien (subject to Permitted Liens) on such Portfolio Investment and such Portfolio Investment has been Delivered (as such term is used in and to the extent required under Section 7.01(a) of the Guarantee and Security Agreement) to the Collateral Agent, and then only for so long as such Portfolio Investment continues to be Delivered as contemplated therein; (e) the portion of the Borrowing Base attributable to Performing Non-Cash Pay High Yield Securities, Performing Non-Cash Pay Mezzanine Investments, Equity Interests and Non-Performing Portfolio Investments shall not exceed 20%; (f) the portion of the Borrowing Base attributable to Equity Interests shall not exceed 10% (it being understood that in no event shall Equity Interests of Financing Subsidiaries be included in the Borrowing Base); (g) the portion of the Borrowing Base attributable to Non-Performing Portfolio Investments shall not exceed 15% and the portion of the Borrowing Base attributable to Portfolio Investments that were Non-Performing Portfolio Investments at the time such Portfolio Investments were acquired shall not exceed 5%; and (h) the portion of the Borrowing Base attributable to Portfolio Investments invested outside the United States, Canada, the United Kingdom, Australia, Germany, France, Belgium, the Netherlands, Luxembourg, Switzerland, Denmark, Finland, Norway and Sweden shall not exceed 5% without the consent of the Administrative Agent. As used herein, the following terms have the following meanings:

  • Initial Borrowing Base For the period from and including the Closing Date to but excluding the first Redetermination Date, the amount of the Borrowing Base shall be $2,250,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to Section 2.14(e), (f) and (g).