Borrowing Base Additions Clause Samples
The 'Borrowing Base Additions' clause defines the conditions under which specific assets or asset categories can be added to the borrowing base, thereby increasing the amount a borrower is eligible to borrow under a credit facility. Typically, this clause outlines the types of assets that qualify for inclusion, such as newly acquired inventory or receivables, and may require the borrower to provide supporting documentation or meet certain eligibility criteria. Its core practical function is to provide flexibility for borrowers to access additional credit as their asset base grows, while ensuring lenders maintain control over the quality and value of collateral supporting the loan.
Borrowing Base Additions. With the Borrower’s written request to the Administrative Agent that any Asset (a “Proposed Borrowing Base Asset”) be added as a Borrowing Base Asset, deliver (or cause to be delivered) to the Administrative Agent, at the Borrower’s expense, a BBA Proposal Package with respect to such Proposed Borrowing Base Asset to the extent not previously provided to the Administrative Agent. Within ten (10) Business Days after receipt of a complete BBA Proposal Package, the Administrative Agent shall give notice to the Borrower of whether the Administrative Agent and the Required Lenders have approved such Proposed Borrowing Base Asset as a Borrowing Base Asset (provided that the approval of the Administrative Agent and the Required Lenders shall be deemed given for the Assets listed on Part B of Schedule II) subject to the delivery of all applicable Deliverables and Guarantor Deliverables pursuant to the following sentence (any such notice comprising an approval, a “Conditional Approval Notice”). Within 10 days after receipt by the Borrower of a Conditional Approval Notice (which period may be extended in the discretion of the Administrative Agent, at the Borrower’s request, for an additional 30 days without the approval of the Required Lenders) or in the case of a Proposed Borrowing Base Asset that is listed on Part B of Schedule II, within 10 days of providing a complete BBA Proposal Package for such Asset, the Borrower shall, at its expense, deliver (or cause to be delivered) to the Administrative Agent all applicable Deliverables and Guarantor Deliverables. Notwithstanding the foregoing, the failure of any Proposed Borrowing Base Asset to comply with one or more of the Borrowing Base Conditions shall not preclude the addition of such Proposed Borrowing Base Asset as a Borrowing Base Asset so long as the Administrative Agent and the Required Lenders shall have expressly consented to the addition of such Proposed Borrowing Base Asset as a Borrowing Base Asset notwithstanding the failure to satisfy such conditions.
Borrowing Base Additions. With the Borrower’s written request to the Administrative Agent that any Asset (a “
Borrowing Base Additions. The Borrower may, at any time after the Closing Date, include additional Real Property Assets as Borrowing Base Assets to the extent the following conditions are satisfied:
(a) such additional Real Property Asset satisfies the requirements set forth in the definition of Borrowing Base Asset, including, without limitation, delivery of each of the Borrowing Base Asset Deliverables with respect thereto; and
(b) such additional Real Property Asset is otherwise acceptable to the Administrative Agent in its reasonable discretion; provided that (i) the Administrative Agent shall use reasonable efforts to approve or disapprove such additional Real Property Asset within ten (10) Business Days after the date on which (A) the Administrative Agent received a written request from the Borrower requesting the addition of such Real Property Asset; (B) all Borrowing Base Asset Deliverables; and (C) to the extent available to the REIT Guarantor or its Subsidiaries, all reasonably requested information reasonably deemed necessary by the Administrative Agent to confirm compliance with the requirements for such Real Property Asset to be a Borrowing Base Asset have been delivered, and a failure to approve or disapprove the additional Real Property Asset in such ten (10) Business Day period shall be deemed to mean that such additional Real Property Asset has been approved and (ii) to the extent any such additional Real Property Asset is denied approval, the Administrative Agent shall specify the reasons in writing to the Borrower for such denial.
Borrowing Base Additions. With the Borrower’s written request to the Administrative Agent that any Campus Housing Asset (a “
Borrowing Base Additions. With the Borrower’s written request to the Administrative Agent that any Asset (a “Proposed Borrowing Base Asset”) be added as a Borrowing Base Asset, deliver (or cause to be delivered) to the Administrative Agent, at the Borrower’s expense, a BBA Proposal Package with respect to such Proposed Borrowing Base Asset to the extent not previously provided to the Administrative Agent. Within ten (10) Business Days after receipt of a complete BBA Proposal Package, the Administrative Agent shall give notice to the Borrower of whether the Administrative Agent and the Required Lenders have approved such Proposed Borrowing Base Asset as a Borrowing Base Asset (provided that the approval of the Administrative Agent and the Required Lenders shall be deemed given for the Assets listed on Part B of Schedule II) subject to the delivery of all applicable Deliverables and Guarantor Deliverables pursuant to the following sentence (any such notice comprising an approval, a “Conditional Approval Notice”). Within 10 days after receipt by the Borrower of a Conditional Approval Notice (which period may be extended in the discretion of the Administrative Agent, at the Borrower’s request, for an additional 30 days without the approval of the Required Lenders) or in the case of a Proposed Borrowing Base Asset that is listed on Part B of Schedule II, within 10 days of providing a Annex A - 77
Borrowing Base Additions. Provided no Default or Event of Default shall have occurred hereunder or under the other Loan Documents and be continuing (or would exist immediately after giving effect to the transactions contemplated by this Section 7.19), the Borrower from time to time, by written request to the Agent, may request that an Encumbered Property be included in the Borrowing Base. Notwithstanding the foregoing, no Encumbered Property shall be included in the Borrowing Base unless and until the following conditions precedent shall have been satisfied, unless waived in writing by the Majority Banks:
(a) any Real Estate to be included shall qualify as an Encumbered Property pursuant to the terms of this Agreement and Borrower shall, upon demand, provide to the Agent such evidence as the Agent may reasonably require to evidence compliance with the definition of Encumbered Property contained in this Agreement;
(b) the Borrower and any Approved Subsidiary that owns the Encumbered Property shall submit a certificate to Agent certifying that no default or event of default has occurred and is continuing under the documents evidencing the Existing Indebtedness.
(c) the Borrower and any Approved Subsidiary that owns the Encumbered Property shall submit a certificate to Agent certifying that the representations and warranties contained in Section 6.18 are true and correct in all material respects with respect to each Encumbered Property.
(d) the Borrower shall submit to the Agent a Compliance Certificate prepared on a proforma basis (and adjusted in the best good faith estimate of the Borrower, based on the advice of an accountant, to give effect to such addition) demonstrating that after giving effect to such addition, no Default or Event of Default shall exist with respect to Section 9.4 hereof. If, at any time, with respect to an Encumbered Property that has been added to the Borrowing Base, there shall occur a default or event of default under the documents evidencing the Existing Indebtedness and all applicable grace or notice and cure periods provided in such documents have expired, such Encumbered Property shall, effective as of the date of such default or event of default and the expiration of such grace or notice and cure period, fail to meet the requirements for inclusion in the Borrowing Base. If, at any time, an Encumbered Property that is included in the Borrowing Base no longer meets the requirements in this Agreement for inclusion in the Borrowing Base, the Encumbered Pr...