Common use of Mandatory Prepayment For Borrowing Base Deficiency Clause in Contracts

Mandatory Prepayment For Borrowing Base Deficiency. In the event the Total Outstandings ever exceed the Borrowing Base as determined by Lenders pursuant to Section 7(b) hereof (a “Borrowing Base Deficiency”), Borrower shall, within fifteen (15) days after written notification from Agent, either (i) by instruments reasonably satisfactory in form and substance to Agent, provide Agent with collateral with value and quality in amounts satisfactory to all of Lenders in their discretion in order to increase the Borrowing Base by an amount at least equal to such excess, (ii) prepay, without premium or penalty, the principal amount of the Notes in an amount at least equal to such excess plus accrued interest thereon to the date of prepayment or (iii) commit to make six (6) equal monthly installment payments in the aggregate amount of the Borrowing Base Deficiency, with the first such installment being due on or before thirty (30) days after Borrower’s receipt of Agent’s notice of the Borrowing Base Deficiency.