Common use of Borrowing Base Verification Clause in Contracts

Borrowing Base Verification. Any of the Administrative Agent’s and Collateral Agent’s officers, employees or agents shall have the right, at any time or times, in the name of the Administrative Agent or Collateral Agent, as applicable, any designee of the Administrative Agent, Collateral Agent or Borrowers, to verify the validity, amount or any other matter relating to Accounts by mail, telephone, electronic communication, personal inspection or otherwise and to conduct field audits and appraisals of the financial affairs and Collateral of the Loan Parties. Borrowers shall cooperate fully with the Administrative Agent and Collateral Agent and their respective agents in an effort to facilitate and promptly conclude all such verifications and field audits and appraisals, all of which shall be at the expense of Borrowers. Until such time as BearingPoint shall have made the Satisfactory Public Filings and Borrowers shall have Satisfactory Collateral Systems, field examiners chosen by the Administrative Agent and Collateral Agent shall be present at Borrowers’ places of business to conduct such verifications and field audits and appraisals as frequently as the Administrative Agent and Collateral Agent shall determine, including, by way of example, as frequently as each business day of Borrower. After BearingPoint shall have made the Satisfactory Public Filings and Borrowers shall have Satisfactory Collateral Systems, no more than 3 field audits and appraisals shall be conducted in any year at Borrowers’ expense; provided, that, following the occurrence and during the continuation of an Event of Default, field audits and appraisals may be conducted more frequently at Borrowers’ expense at Administrative Agent’s and Collateral Agent’s reasonable request.