Borrowing Base Reserve Clause Samples
A Borrowing Base Reserve clause defines a portion of the borrowing base that is set aside or excluded from the calculation of how much a borrower can draw under a credit facility. In practice, lenders may establish reserves to account for potential risks such as uncollectible receivables, inventory obsolescence, or other factors that could reduce the value of the collateral. By implementing this reserve, the clause ensures that the lender is protected against fluctuations in collateral value, thereby reducing credit risk and maintaining the integrity of the loan structure.
Borrowing Base Reserve. During the Forbearance Period (and thereafter in Lender’s sole discretion), the Lender shall maintain a Borrowing Base reserve of not less than $300,000.00, which reserve shall not be reduced as a result of the consummation or closing of either or both of the Equity Raises notwithstanding that any portion of such reserve may constitute the Equity Raise Reserve.
Borrowing Base Reserve. Company and ▇▇▇▇▇ Fargo each acknowledges and confirms that ▇▇▇▇▇ Fargo has established a $60,000 Borrowing Base Reserve in connection with the past due tax obligation described in Section 5.29 of the Credit Agreement, as amended hereby, until all such obligations have been paid in full and all liens related thereto have been terminated or released in accordance with Section 5.29 of the Credit Agreement, as amended hereby.
Borrowing Base Reserve. The Borrower will not permit the Borrowing Base Reserve at any time during any period set forth to be less than the amount set forth as follows:
(i) from November 10, 2000 through December 31, 2000: $10,000,000;
(ii) on January 1, 2001 and thereafter: $15,000,000.
Borrowing Base Reserve. The definition of “Borrowing Base Reserve” is hereby amended to read as follows: