Common use of Borrowing Base Adjustments Clause in Contracts

Borrowing Base Adjustments. In making a determination of the Borrowing Base Limit, the Lenders reserve the right to attribute no value or a reduced value to Reserves in respect of which: (a) there is an outstanding Purchase Money Mortgage attaching to or against the related or associated Advantage Hydrocarbon Properties; (b) the right, title or interest of the Borrower or the Material Subsidiary is defective (excepting Minor Title Defects), or is the subject matter of subsisting legal proceedings alleging defects in such title which, if true, would constitute a defect in title (other than a Minor Title Defect); or (c) there exist outstanding Production Payments or Prepayments.

Borrowing Base Adjustments. In making a determination of the Borrowing Base Limit, the Lenders reserve the right to attribute no value or a reduced value to Reserves in respect of which: (a) there is an outstanding Purchase Money Mortgage attaching to or against the related or associated Advantage Hydrocarbon PropertiesMortgage; (b) the right, title or interest of the Borrower or the Material Subsidiary its Subsidiaries is defective (defective, excepting Minor Title Defects), ; (c) the title of the Borrower or its Subsidiaries is the subject matter of subsisting legal proceedings alleging defects in such title which, if true, would constitute a defect in title (other than a Minor Title Defect)Defects; or (cd) there exist outstanding Production Payments or Prepayments.