Common use of Borrowing Capacity Clause in Contracts

Borrowing Capacity. If upon the submission of any inventory report as contemplated by paragraph 6.1 of this Agreement, the Borrowing Capacity is less than the sum of the aggregate principal balance of all then outstanding Advances (inclusive of the Dollar Equivalent of all outstanding Euro Denominated Revolving Loans) and the aggregate face amount (or Dollar Equivalent thereof as of such time) of Letters of Credit and the Borrower fails to immediately pay such difference to the Agent for the benefit of the Lenders.