Frequency of Computation of Borrowing Base Clause Samples

The 'Frequency of Computation of Borrowing Base' clause defines how often the borrowing base—the pool of assets used to determine the maximum amount a borrower can draw under a credit facility—must be recalculated. Typically, this clause specifies whether the calculation occurs daily, weekly, monthly, or upon certain events, and may require the borrower to provide updated financial information or asset reports at those intervals. By establishing a regular schedule for reassessing the borrowing base, this clause ensures that the lender's risk is managed appropriately and that the credit extended remains aligned with the value of the borrower's eligible assets.
Frequency of Computation of Borrowing Base. Upon the receipt by Administrative Agent of a new or updated Appraisal, in connection with the addition or removal of a Qualified Property in accordance with Sections 2.19 and 4.3 and a Qualified Property becoming a Disqualified Property in accordance with Section 4.2, Borrower shall, within two (2) Business Days of (i) notice, which may be given by electronic transmission, of Administrative Agent’s receipt of a new or updated Appraisal, (ii) the addition or removal of a Qualified Property, or (iii) a Qualified Property becoming a Disqualified Property, compute the Borrowing Base based on the above formula and deliver to Administrative Agent a Borrowing Base Report and Collateral Certificate acceptable to Administrative Agent, in Administrative Agent’s sole but reasonable business judgment discretion. If such Borrowing Base computation, and such Borrowing Base Report and Collateral Certificate, are not received by Administrative Agent within such time period, then Administrative Agent shall have the right to compute the Borrowing Base based on the formula above, in Administrative Agent’s sole but reasonable business judgment. Any Remargining Payment due as a result of any such computation of the Borrowing Base shall be subject to Section 2.20.
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Frequency of Computation of Borrowing Base. Regardless of whether Borrower timely delivers a Borrowing Base Report and Collateral Certificate as and when required pursuant to this Agreement, Lender may, from time to time, compute the Borrowing Base based on the above formula in Lender’s sole but reasonable discretion and such determination by Lender shall be conclusive and immediately effective, absent manifest error.
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Frequency of Computation of Borrowing Base. Administrative Agent may, as of the end of each calendar quarter, compute the Borrowing Base based on the above formula, regardless of whether Borrower timely delivers to Administrative Agent a Borrowing Base Report and Collateral Certificate as and when required pursuant to this Agreement (and any adjustment to the Borrowing Base resulting from such computation shall be effective as of the date of determination after the end of the applicable calendar quarter and any Remargining Payment shall be due in accordance with Section 2.19 above). Additionally, Administrative Agent may compute the Borrowing Base based on the above formula upon the occurrence of any of the following (but not at any other time), and any adjustment to the Borrowing Base resulting from such computation shall be immediately effective as of the date of determination: (i) if, in accordance with the provisions of this Agreement, a Qualified Property is converted to a Disqualified Property, or a Disqualified Property is converted to a Qualified Property (provided Administrative Agent shall only recalculate the Borrowing Base Value with respect to the Qualified Property being added or removed); (ii) the occurrence of an event described in Section 3.3; (iii) the issuance of a new or updated Appraisal for a Qualified Property (excluding, however, a new or updated Appraisal obtained pursuant to Section 3.6(d)(i) or(iv)) and provided Administrative Agent shall only recalculate the Borrowing Base Value of the Qualified Property being recalculated; (iv) an Event of Default or an Unmatured Event of Default (so long as Administrative Agent has delivered to Operating Borrower written notice of such Unmatured Event of Default); (v) Borrower’s election to extend the initial Maturity Date pursuant to Section 2.9; or (vi) the addition or release (subject to the provisions of Sections 2.18 and 4.3) of a Qualified Property as Eligible Collateral (provided, Administrative shall only recalculate the Borrowing Base with respect to the Borrowing Base Value of the Qualified Property being added or released).
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Frequency of Computation of Borrowing Base. Regardless of whether Borrower timely delivers a Borrowing Base Report and Collateral Certificate as and when required pursuant to this Agreement, Administrative Agent may, from time to time, compute the Borrowing Base based on the above formula in Administrative Agent’s sole but reasonable business judgment discretion, and such determination by Administrative Agent shall be conclusive and immediately effective, absent manifest error.
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Related to Frequency of Computation of Borrowing Base

  • 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:

  • 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;

  • 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).

  • Notification of Advances, Interest Rates, Prepayments and Commitment Reductions Promptly after receipt thereof, the Agent will notify each Lender of the contents of each Aggregate Commitment reduction notice, Borrowing Notice, Conversion/Continuation Notice, and repayment notice received by it hereunder. The Agent will notify each Lender of the interest rate applicable to each Eurodollar Advance promptly upon determination of such interest rate and will give each Lender prompt notice of each change in the Alternate Base Rate.

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