{"component": "clause", "props": {"groups": [{"size": 151, "snippet": "Agent shall have received evidence from Borrowers that the aggregate amount of Eligible Receivables and Eligible Inventory is sufficient in value and amount to support Advances in the amount requested by Borrowers on the Closing Date;", "snippet_links": [{"key": "agent-shall", "type": "definition", "offset": [0, 11]}, {"key": "aggregate-amount", "type": "clause", "offset": [59, 75]}, {"key": "eligible-receivables", "type": "definition", "offset": [79, 99]}, {"key": "eligible-inventory", "type": "clause", "offset": [104, 122]}, {"key": "support-advances", "type": "definition", "offset": [160, 176]}, {"key": "requested-by", "type": "definition", "offset": [191, 203]}, {"key": "the-closing-date", "type": "clause", "offset": [217, 233]}], "samples": [{"hash": "k0fe2jiMYiA", "uri": "/contracts/k0fe2jiMYiA#borrowing-base", "label": "Revolving Credit and Security Agreement (Keane Group, Inc.)", "score": 27.9514026642, "published": true}, {"hash": "dDZymua6lD3", "uri": "/contracts/dDZymua6lD3#borrowing-base", "label": "Revolving Credit and Security Agreement (Keane Group, Inc.)", "score": 27.9514026642, "published": true}, {"hash": "kc1FEDivGeF", "uri": "/contracts/kc1FEDivGeF#borrowing-base", "label": "Revolving Credit and Security Agreement (TCP International Holdings Ltd.)", "score": 27.7597541809, "published": true}], "hash": "bf94d929965ab5178fd8a3f393d212a8", "id": 1}, {"size": 107, "snippet": "If, at any time, (A) the Revolver Usage on such date exceeds (B) the lesser of (x) the Borrowing Base reflected in the Borrowing Base Certificate most recently delivered by Borrowers to Agent, or (y) the Maximum Revolver Amount, in all cases as adjusted for Reserves established by Agent in accordance with Section 2.1(c), then Borrowers shall immediately prepay the Obligations in accordance with Section 2.4(f)(i) in an aggregate amount equal to the amount of such excess.", "snippet_links": [{"key": "at-any-time", "type": "clause", "offset": [4, 15]}, {"key": "revolver-usage", "type": "definition", "offset": [25, 39]}, {"key": "lesser-of", "type": "definition", "offset": [69, 78]}, {"key": "the-borrowing", "type": "clause", "offset": [83, 96]}, {"key": "borrowing-base-certificate", "type": "definition", "offset": [119, 145]}, {"key": "maximum-revolver-amount", "type": "definition", "offset": [204, 227]}, {"key": "in-all-cases", "type": "clause", "offset": [229, 241]}, {"key": "as-adjusted", "type": "definition", "offset": [242, 253]}, {"key": "by-agent", "type": "clause", "offset": [279, 287]}, {"key": "in-accordance-with", "type": "clause", "offset": [288, 306]}, {"key": "the-obligations", "type": "clause", "offset": [363, 378]}, {"key": "aggregate-amount", "type": "clause", "offset": [422, 438]}, {"key": "equal-to", "type": "definition", "offset": [439, 447]}], "samples": [{"hash": "eokTFITqcmp", "uri": "/contracts/eokTFITqcmp#borrowing-base", "label": "Credit Agreement (Kaiser Aluminum Corp)", "score": 36.8083496094, "published": true}, {"hash": "2eiDRQ71jt0", "uri": "/contracts/2eiDRQ71jt0#borrowing-base", "label": "Credit Agreement (Kaiser Aluminum Corp)", "score": 36.7891845703, "published": true}, {"hash": "gCMOD7RsRlb", "uri": "/contracts/gCMOD7RsRlb#borrowing-base", "label": "Credit Agreement (Kaiser Aluminum Corp)", "score": 35.8117713928, "published": true}], "hash": "4a54b98ca8a658e9c53a89afd96e4bf2", "id": 2}, {"size": 69, "snippet": "The words \"Borrowing Base\" mean, as determined by Lender from time to time, the lesser of (a) $6,300,000.00; or (b) 80.000% of the aggregate amount of Eligible Accounts.", "snippet_links": [{"key": "the-words", "type": "definition", "offset": [0, 9]}, {"key": "by-lender", "type": "definition", "offset": [47, 56]}, {"key": "from-time-to-time", "type": "clause", "offset": [57, 74]}, {"key": "lesser-of", "type": "definition", "offset": [80, 89]}, {"key": "aggregate-amount", "type": "clause", "offset": [131, 147]}, {"key": "eligible-accounts", "type": "clause", "offset": [151, 168]}], "samples": [{"hash": "7f5XDBwWC8T", "uri": "/contracts/7f5XDBwWC8T#borrowing-base", "label": "Loan Agreement (Pacific Aerospace & Electronics Inc)", "score": 18.0, "published": true}, {"hash": "4GOedRuAAIN", "uri": "/contracts/4GOedRuAAIN#borrowing-base", "label": "Loan Agreement (Pacific Aerospace & Electronics Inc)", "score": 18.0, "published": true}], "hash": "d844ff13a83e9a0eb1d0dd0130358f39", "id": 3}, {"size": 37, "snippet": "Borrowing Base\" has the meaning set forth in Section 2.1(d).", "snippet_links": [], "samples": [{"hash": "3rWd8tY085u", "uri": "/contracts/3rWd8tY085u#borrowing-base", "label": "Loan and Security Agreement (Ensign Group, Inc)", "score": 21.0, "published": true}, {"hash": "xhQE23Xj0i", "uri": "/contracts/xhQE23Xj0i#borrowing-base", "label": "Loan and Security Agreement (Phymatrix Corp)", "score": 18.0, "published": true}, {"hash": "kYtD8wVV4hJ", "uri": "/contracts/kYtD8wVV4hJ#borrowing-base", "label": "Loan and Security Agreement (Trizetto Group Inc)", "score": 18.0, "published": true}], "hash": "2257323edeb0581408da06fab27d64ee", "id": 6}, {"size": 29, "snippet": "(a) The Administrative Agent may, in its sole and absolute discretion, and shall, at the request of the Majority Lenders, on any date, calculate the Borrowing Base and shall provide written notice thereof to the Borrower. To the extent any such calculation results in a Borrowing Base Deficiency, the Administrative Agent shall deliver a notice to the Borrower and each Lender (a \u201cBorrowing Base Deficiency Notice\u201d), setting forth the calculation thereof (which shall be conclusive absent manifest error), and the Borrowing Base Required Payment to be made by the Borrower as a result of such calculation (which amount shall be paid in accordance with Section 2.9). At the Administrative Agent\u2019s discretion, the Administrative Agent may obtain valuation reports with respect to the Administrative Agent Asset Value from a Valuation Agent, at any time and from time to time on a non-binding basis; provided that the Borrower shall not be responsible for payment of any costs, expenses, fees or other amounts in connection with such valuation report except in connection with a Borrowing Base Dispute pursuant to Section 2.6(b).\n(b) Notwithstanding the foregoing or anything to the contrary contained herein, the Borrower shall have the right to dispute the Administrative Agent\u2019s calculation of the Administrative Agent Asset Value by notifying the Administrative Agent and the Lenders within three (3) Business Days after the Borrower receives a Borrowing Base Deficiency Notice (a \u201cBorrowing Base Dispute\u201d). If the Borrower initiates a Borrowing Base Dispute, then the Administrative Agent, on one hand, and the Borrower, on the other hand, shall each promptly direct separate Valuation Agents, to prepare a valuation report with respect to such Administrative Agent Asset Value. The average of the midpoint values indicated in the two valuation reports submitted by the Valuation Agents shall become the conclusive Valuation Agent Market Value Percentage of the related MSRs that constitute Eligible Assets, binding upon all parties hereto, absent manifest error.\n(c) Any costs, expenses, fees and other amounts due and owing to any Valuation Agent or Dealer in connection with the engagement of such Valuation Agent or Dealer in connection with a Borrowing Base Dispute pursuant to Section 2.6(b) shall be an Obligation of the Borrower and shall become due and payable on the immediately succeeding Monthly Payment Date in accordance with Section 2.7.", "snippet_links": [{"key": "sole-and-absolute-discretion", "type": "definition", "offset": [41, 69]}, {"key": "the-request", "type": "clause", "offset": [85, 96]}, {"key": "the-majority-lenders", "type": "clause", "offset": [100, 120]}, {"key": "the-borrowing", "type": "clause", "offset": [145, 158]}, {"key": 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[1411, 1421]}, {"key": "the-other-hand", "type": "clause", "offset": [1626, 1640]}, {"key": "submitted-by", "type": "definition", "offset": [1855, 1867]}, {"key": "the-valuation", "type": "clause", "offset": [1868, 1881]}, {"key": "valuation-agent-market-value-percentage", "type": "definition", "offset": [1917, 1956]}, {"key": "eligible-assets", "type": "definition", "offset": [1993, 2008]}, {"key": "binding-upon", "type": "clause", "offset": [2010, 2022]}, {"key": "parties-hereto", "type": "definition", "offset": [2027, 2041]}, {"key": "amounts-due-and-owing", "type": "clause", "offset": [2106, 2127]}, {"key": "engagement-of", "type": "clause", "offset": [2184, 2197]}, {"key": "obligation-of-the-borrower", "type": "clause", "offset": [2312, 2338]}, {"key": "due-and-payable", "type": "definition", "offset": [2356, 2371]}, {"key": "monthly-payment-date", "type": "definition", "offset": [2402, 2422]}], "samples": [{"hash": "gfvCMRTOLnX", "uri": "/contracts/gfvCMRTOLnX#borrowing-base", "label": "Credit Agreement (Home Point Capital Inc.)", "score": 34.3579750061, "published": true}, {"hash": "jZQEiB32OfG", "uri": "/contracts/jZQEiB32OfG#borrowing-base", "label": "Credit Agreement (Home Point Capital Inc.)", "score": 33.6078033447, "published": true}, {"hash": "1SIXq2FU0OF", "uri": "/contracts/1SIXq2FU0OF#borrowing-base", "label": "Credit Agreement (Home Point Capital Inc.)", "score": 33.2053375244, "published": true}], "hash": "bc8bae4a48fef8d40f00362591aff996", "id": 10}, {"size": 42, "snippet": "Any failure to cure any Borrowing Base deficiency in accordance with Section 2.05;", "snippet_links": [{"key": "failure-to-cure", "type": "definition", "offset": [4, 19]}, {"key": "borrowing-base-deficiency", "type": "definition", "offset": [24, 49]}, {"key": "in-accordance-with", "type": "clause", "offset": [50, 68]}], "samples": [{"hash": "ajrJmFsS61q", "uri": "/contracts/ajrJmFsS61q#borrowing-base", "label": "Credit Agreement (Isramco Inc)", "score": 26.508556366, "published": true}, {"hash": "jj6TRWix99u", "uri": "/contracts/jj6TRWix99u#borrowing-base", "label": "Credit Agreement (Abraxas Petroleum Corp)", "score": 25.446269989, "published": true}, {"hash": "6MeLqHz1Sdy", "uri": "/contracts/6MeLqHz1Sdy#borrowing-base", "label": "Credit Agreement (Callon Petroleum Co)", "score": 23.4804935455, "published": true}], "hash": "582e0f741bd570359b8eef4a2b6de4dd", "id": 5}, {"size": 56, "snippet": "The initial Borrowing Base in effect as of Effective Date has been set by the Administrative Agent and the Lenders and acknowledged by the Borrower as $90,000,000. Such initial Borrowing Base shall remain in effect until the next redetermination made pursuant to this Section 2.02. The Borrowing Base shall be determined in accordance with the standards set forth in Section 2.02(d) and is subject to periodic redetermination pursuant to Sections 2.02(b), 2.02(c) and 2.02(e).", "snippet_links": [{"key": "initial-borrowing-base", "type": "definition", "offset": [4, 26]}, {"key": "in-effect", "type": "definition", "offset": [27, 36]}, {"key": "effective-date", "type": "clause", "offset": [43, 57]}, {"key": "the-administrative-agent-and-the-lenders", "type": "clause", "offset": [74, 114]}, {"key": "by-the-borrower", "type": "clause", "offset": [132, 147]}, {"key": "made-pursuant-to", "type": "clause", "offset": [246, 262]}, {"key": "the-borrowing", "type": "clause", "offset": [282, 295]}, {"key": "in-accordance-with", "type": "clause", "offset": [321, 339]}, {"key": "the-standards", "type": "clause", "offset": [340, 353]}, {"key": "subject-to", "type": "clause", "offset": [390, 400]}, {"key": "pursuant-to-sections", "type": "clause", "offset": [426, 446]}], "samples": [{"hash": "kb84sPjhNPr", "uri": "/contracts/kb84sPjhNPr#borrowing-base", "label": "Loan Agreement (Resaca Exploitation, Inc.)", "score": 21.3805618286, "published": true}, {"hash": "4OkkxRwCs7D", "uri": "/contracts/4OkkxRwCs7D#borrowing-base", "label": "Loan Agreement (Resaca Exploitation, Inc.)", "score": 21.3805618286, "published": true}, {"hash": "e60z7OlmLmB", "uri": "/contracts/e60z7OlmLmB#borrowing-base", "label": "Loan Agreement (Resaca Exploitation, Inc.)", "score": 21.3230667114, "published": true}], "hash": "804256fb4f398ffa781f0a80fd5767c0", "id": 4}, {"size": 31, "snippet": "If, at any time, (A) the Revolver Usage on such date exceeds (B) the Borrowing Base (such excess being referred to as the \u201cBorrowing Base Excess\u201d), then Borrower shall immediately prepay the Obligations in accordance with Section 2.4(f)(i) in an aggregate amount equal to the Borrowing Base Excess.", "snippet_links": [{"key": "at-any-time", "type": "clause", "offset": [4, 15]}, {"key": "revolver-usage", "type": "definition", "offset": [25, 39]}, {"key": "the-borrowing", "type": "clause", "offset": [65, 78]}, {"key": "borrowing-base-excess", "type": "definition", "offset": [123, 144]}, {"key": "borrower-shall", "type": "clause", "offset": [153, 167]}, {"key": "the-obligations", "type": "clause", "offset": [187, 202]}, {"key": "in-accordance-with", "type": "clause", "offset": [203, 221]}, {"key": "aggregate-amount", "type": "clause", "offset": [246, 262]}, {"key": "equal-to", "type": "definition", "offset": [263, 271]}], "samples": [{"hash": "8X182gP4gmZ", "uri": "/contracts/8X182gP4gmZ#borrowing-base", "label": "Credit Agreement (Alaska Air Group Inc)", "score": 21.6078033447, "published": true}, {"hash": "j7XijXrRlhD", "uri": "/contracts/j7XijXrRlhD#borrowing-base", "label": "Credit Agreement (Navarre Corp /Mn/)", "score": 21.0, "published": true}, {"hash": "bgW8EpGlq8I", "uri": "/contracts/bgW8EpGlq8I#borrowing-base", "label": "Credit Agreement (Alaska Air Group Inc)", "score": 19.3394927979, "published": true}], "hash": "25598e0c3bc9c8997f63730069bd1fd7", "id": 9}, {"size": 36, "snippet": "The Borrower shall have delivered the Borrowing Base Certificate required to be delivered by Section 6.12. After giving effect to the Loans or the Letters of Credit requested to be made or Issued on any such date and the use of proceeds thereof, the Revolving Credit Outstandings shall not exceed the Maximum Credit at such time.", "snippet_links": [{"key": "the-borrower-shall", "type": "clause", "offset": [0, 18]}, {"key": "certificate-required", "type": "clause", "offset": [53, 73]}, {"key": "after-giving", "type": "clause", "offset": [107, 119]}, {"key": "the-loans", "type": "clause", "offset": [130, 139]}, {"key": "the-letters-of-credit", "type": "clause", "offset": [143, 164]}, {"key": "issued-on", "type": "clause", "offset": [189, 198]}, {"key": "use-of-proceeds", "type": "definition", "offset": [221, 236]}, {"key": "revolving-credit-outstandings", "type": "definition", "offset": [250, 279]}, {"key": "maximum-credit", "type": "clause", "offset": [301, 315]}], "samples": [{"hash": "hzEICg7KIFv", "uri": "/contracts/hzEICg7KIFv#borrowing-base", "label": "Credit Agreement (Warnaco Group Inc /De/)", "score": 22.5140323639, "published": true}, {"hash": "8GN10LF9scl", "uri": "/contracts/8GN10LF9scl#borrowing-base", "label": "Credit Agreement (Warnaco Group Inc /De/)", "score": 22.5140323639, "published": true}, {"hash": "cDgEBgblXdu", "uri": "/contracts/cDgEBgblXdu#borrowing-base", "label": "Credit Agreement (Warnaco Group Inc /De/)", "score": 21.8542098999, "published": true}], "hash": "a61e45a59f5740f600c8ec06bf9ab5c7", "id": 7}, {"size": 34, "snippet": "(i) If the Leverage Ratio as of the end of a fiscal quarter for which the Borrower has or was required to deliver financial statements pursuant to Section 7.1 (the earliest of such dates, the \u201cBB Compliance Date\u201d) equals or exceeds 0.95 to 1.00, at any time on or after the BB Compliance Date through the immediately following BB Compliance Date, the Borrower will not permit the Borrowing Base (determined (A) as of the end of such fiscal quarter and set forth on the Inventory Summary Report required to be delivered for such fiscal quarter pursuant to Section 7.27.2 (ii) or (B) as of the end of any fiscal month and set forth on the Inventory Summary Report for such fiscal month delivered pursuant to the proviso of Section 7.27.2(ii)) to be less than the aggregate principal amount of Senior Indebtedness (excluding Permitted Nonrecourse Indebtedness and Permitted Purchase Money Loans) outstanding at any time during such period, it being understood that if as of the end of the immediately following fiscal quarter the Leverage Ratio is less than 0.95 to 1.00, this Section 7.27.2(i) shall no longer apply from and after the related BB Compliance Date until the immediately following BB Compliance Date (the \u201cBorrowing Base Requirement\u201d).\n(ii) Borrower shall deliver to the Administrative Agent an Inventory Summary Report in the form of Exhibit J and incorporated herein within fifty days after the last day of each fiscal quarter in which the Leverage Ratio exceeds 0.95 to 1:00 as of the last day of such fiscal quarter; provided that Borrower may, in its discretion, deliver an Inventory Summary Report as of the last day of any fiscal month. The Inventory Summary Report shall reflect Inventory that Borrower determines in good faith to designate as Loan Inventory. Upon Administrative Agent\u2019s receipt of the Inventory Summary Report, Administrative Agent may conduct inspections or reviews of the subject Inventory that Administrative Agent deems appropriate, at the expense of the Borrower, subject to the reimbursement limitation set forth in Section 7.18.", "snippet_links": [{"key": "leverage-ratio", "type": "definition", "offset": [11, 25]}, {"key": "fiscal-quarter", "type": "definition", "offset": [45, 59]}, {"key": "financial-statements", "type": "clause", "offset": [114, 134]}, {"key": "pursuant-to-section", "type": "clause", "offset": [135, 154]}, {"key": "bb-compliance-date", "type": "definition", "offset": [193, 211]}, {"key": "at-any-time", "type": "clause", "offset": [246, 257]}, {"key": "borrower-will", "type": "clause", "offset": [351, 364]}, {"key": "the-borrowing", "type": "clause", "offset": [376, 389]}, {"key": "report-required", "type": "clause", "offset": [487, 502]}, {"key": "fiscal-month", "type": "definition", "offset": 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"/contracts/lmt7uMAe2vr#borrowing-base", "label": "Credit Agreement (Horton D R Inc /De/)", "score": 35.9760437012, "published": true}, {"hash": "fnLYRWgYCDq", "uri": "/contracts/fnLYRWgYCDq#borrowing-base", "label": "Credit Agreement (Horton D R Inc /De/)", "score": 33.8323059082, "published": true}], "hash": "cfc9f0173e8b25b262c7d0b2a5a4af3b", "id": 8}], "next_curs": "ClcSUWoVc35sYXdpbnNpZGVyY29udHJhY3RzcjMLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ihdib3Jyb3dpbmctYmFzZSMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"size": 4463, "title": "Borrowing Base", "parents": [["conditions-precedent", "Conditions Precedent"], ["the-credits", "The Credits"], ["mandatory-prepayments", "Mandatory Prepayments"], ["conditions-to-initial-advances", "Conditions to Initial Advances"], ["borrowing-base", "Borrowing Base"]], "children": [["initial-borrowing-base", "Initial Borrowing Base"], ["effectiveness-of-a-redetermined-borrowing-base", "Effectiveness of a Redetermined Borrowing Base"], ["scheduled-and-interim-redeterminations", "Scheduled and Interim Redeterminations"], ["scheduled-and-interim-redetermination-procedure", "Scheduled and Interim Redetermination Procedure"], ["borrowing-base", "Borrowing Base"]], "id": "borrowing-base", "related": [["initial-borrowing-base", "Initial Borrowing Base", "Initial <strong>Borrowing Base</strong>"], ["calculation-of-borrowing-base", "Calculation of Borrowing Base", "Calculation of <strong>Borrowing Base</strong>"], ["effectiveness-of-a-redetermined-borrowing-base", "Effectiveness of a Redetermined Borrowing Base", "Effectiveness of a Redetermined <strong>Borrowing Base</strong>"], ["borrowing-base-report", "Borrowing Base Report", "<strong>Borrowing Base</strong> Report"], ["borrowing-base-reports", "Borrowing Base Reports", "<strong>Borrowing Base</strong> Reports"]], "related_snippets": [], "updated": "2026-04-18T06:00:08+00:00", "also_ask": ["What negotiation levers exist to maximize or limit the Borrowing Base for each party?", "Which assets and eligibility criteria are essential to include in the Borrowing Base definition?", "What are the most common risks or loopholes that could undermine the Borrowing Base calculation?", "How do Borrowing Base provisions differ across jurisdictions or financing types?", "What factors most often determine enforceability of Borrowing Base adjustments in court?"], "drafting_tip": "Define the components of the Borrowing Base precisely to avoid ambiguity; specify calculation methods to ensure consistency; require regular reporting to maintain lender oversight.", "explanation": "The Borrowing Base clause defines the maximum amount a borrower can draw under a credit facility, based on the value of specified assets such as accounts receivable, inventory, or other collateral. Typically, the lender periodically calculates the borrowing base by applying agreed-upon advance rates and eligibility criteria to the underlying assets, which may fluctuate over time. This clause ensures that the lender's risk is managed by tying the available credit to the value of the borrower's assets, thereby preventing over-advancement and protecting the lender's interests."}, "json": true, "cursor": ""}}