Borrowing Base Indebtedness Clause Samples
The Borrowing Base Indebtedness clause defines the specific types and amounts of debt that are permitted to be incurred based on the value of a borrowing base, typically calculated from eligible assets such as accounts receivable or inventory. In practice, this clause sets limits on how much a borrower can owe under credit facilities that are secured by these assets, often requiring regular reporting and recalculation of the borrowing base to ensure compliance. Its core function is to control the borrower’s leverage and protect the lender by tying the amount of allowable debt to the value of liquid, easily monitored collateral.
Borrowing Base Indebtedness. The calculation of Borrowing Base Indebtedness at any time shall be determined by reference to the most recent Compliance Certificate delivered to the Administrative Agent; provided that if the Administrative Agent notifies the Borrower within five (5) Business Days of receipt of the Compliance Certificate that it disagrees with the calculation of Borrowing Base Indebtedness contained in such Compliance Certificate (including a reasonable description of the basis upon which it disagrees and its reasonable calculation of the Borrowing Base Indebtedness), the Borrowing Base Indebtedness shall be calculated as so reasonably determined by Administrative Agent based on the Compliance Certificate and the statements, reports and information provided to Administrative Agent pursuant to Section 6.01.
Borrowing Base Indebtedness. The following figures are as of the Statement Date:
1. The aggregate principal amount of indebtedness for borrowed money (including, without limitation, the Senior Notes) $
2. Letter of Credit Usage with respect to Financial Letters of Credit that are not Cash Collateralized or Letter of Credit Collateralized (computed as if all Financial Letters of Credit were Letters of Credit issued under the Agreement) $
3. Total Borrowing Base Indebtedness (Lines I.B.1+2) 7 $ 3 Such Tower Unsold Units shall be excluded from computation in the Borrowing Base on and after that date which is one hundred and eighty (180) days from the Tower Completion Date for such Tower Units. 4 Line I.A.9 shall not exceed 45% of the amount in Line I.A.11. The value of (i) any unentitled land or land under option and (ii) the assets securing the loans under the Stonegate Agreement, in each case, shall not be included in the Borrowing Base. 5 In no event shall the percentage of the Borrowing Base attributable to (i) all Tower Construction Projects under Lines I.A.5, I.A.6 and I.A.7 exceed (x) 20% of the Borrowing Base, if the Consolidated Leverage Ratio, calculated on a pro forma basis with any Loan, Letter of Credit or other Borrowing Base Indebtedness deemed to be incurred as of the end of the most recent Fiscal Quarter for which financial statements have been delivered (or were required to have been delivered) pursuant to Section 7.1(a) or (b) (or, to the extent more recent, the last fiscal month for which internal financial statements are available), is less than 0.30 to 1.00 and (y) 15% of the Borrowing Base, otherwise, and (ii) any single Tower Construction Project under Lines I.A.5, I.A.6 and I.A.7 exceed 10% of the Borrowing Base. 6 Prior to the commencement of any Tower Construction Project, the value of any land designated for such Tower Construction Project shall, to the extent constituting Land Held For Future Development under the Credit Agreement, be included in the Borrowing Base under Line I.A.9. From and after the commencement of a Tower Construction Project, the value of the land upon which such Tower Construction Project has commenced shall no longer be included in the Borrowing Base pursuant to Line I.A.9, but instead, subject to the requirements set forth in Section 2.8(c) of the Credit Agreement, the components of such Tower Construction Project shall be included under Lines I.A.5, I.A.6 and I.A.7, as applicable. 7 Line I.B.3 shall not include (i) any Non-Recourse In...
Borrowing Base Indebtedness. The following figures are as of the Statement Date:
(i) The aggregate principal amount of indebtedness for borrowed money (including, without limitation, the Senior Notes) $
(ii) Letter of Credit Usage with respect to Financial Letters of Credit that are not Cash Collateralized or Letter of Credit Collateralized (computed as if all Financial Letters of Credit $
(1) Line I.A.6 shall not exceed 45% of the amount in Line I.A.8. The value of (i) any unentitled land or land under option, (ii) the vertical construction of any Tower, (iii) the land on which a Tower is constructed, but only after the construction of such Tower has commenced and (iv) the assets securing the loans under the Stonegate Agreement, in each case, shall not be included in the Borrowing Base. were Letters of Credit issued under the Agreement)
(iii) other Borrowing Base Indebtedness(2) $
(iv) Total Borrowing Base Indebtedness (Lines I.B.1+2+3) $
Borrowing Base Indebtedness. The following figures are as of the Statement Date:
1. Loans $
2. Letter of Credit Usage with respect to Financial Letters of Credit that are not Cash Collateralized or Letter of Credit Collateralized (computed as if all Financial Letters of Credit were Letters of Credit issued under the Agreement) $ 1 Line I.A.4 shall not exceed 40% of the amount in Line I.A.6. The value of any unentitled land or land under option shall not be included in the Borrowing Base.
3. other Borrowing Base Indebtedness2 $
Borrowing Base Indebtedness. The following figures are as of the Statement Date: 1. Loan $_______ 2. Revolving Loans