Collateral Borrowing Base Sample Clauses
The Collateral Borrowing Base clause defines the calculation and composition of the pool of assets that a borrower can use as collateral to secure a loan or line of credit. Typically, this clause outlines which types of assets—such as accounts receivable, inventory, or equipment—are eligible, and may assign different advance rates or discounts to each asset class to determine their contribution to the total borrowing base. By establishing clear rules for what assets qualify and how much credit can be extended against them, this clause ensures both parties understand the limits of available credit and helps lenders manage their risk exposure.
Collateral Borrowing Base. Borrower will not request, nor will it accept, the proceeds of any Revolver Loan or advance under the Revolver Note at any time when the amount thereof, together with the sum of the outstanding and unpaid principal amount of the Revolver Note plus the Letter of Credit Exposure exceeds the Collateral Borrowing Base. As used in this Agreement, the term "Collateral Borrowing Base" shall mean the Collateral Borrowing Base as determined in accordance with the provisions of Article IV of this Agreement.
Collateral Borrowing Base. The Collateral Borrowing Base shall be the amount which is the lesser of (a) fifty percent (50%) of the aggregate Asset Value of the Unencumbered Operating Properties with respect to which the requirements of Section 5.2(a) and (b) have been satisfied, and (b) the maximum amount which would not exceed the Debt Service Coverage Amount for the Unencumbered Operating Properties with respect to which the requirements of Section 5.2(a) and (b) have been satisfied. Notwithstanding the foregoing, the Collateral Borrowing Base attributable to an Unencumbered Operating Property shall not exceed the amount to which recovery under the applicable Escrowed Security Documents is limited, unless such Escrowed Security Documents are amended to increase any such limit.
Collateral Borrowing Base. 4.1 SEMI-ANNUAL ENGINEERING REPORTS (OIL AND GAS PROPERTIES).
(a) The Borrowers shall deliver to the Bank at the Borrowers' cost by each April 20 and October 20, commencing April 20, 1997 such current data, reports and engineering information as is necessary or appropriate for the Bank's engineers or any other independent petroleum engineer acceptable to the Bank to compile and prepare by each May 31 and November 30 (commencing May 31, 1997) an engineering report in form and substance satisfactory to the Bank, evaluating the proven producing oil and gas reserves attributable to Sunterra's aggregate interest in the Mortgaged Property (as defined in subsection (b) below), together with the expenses attributable thereto. The engineering data and information furnished to the Bank by or on behalf of the Borrowers shall be accompanied by such other information as shall be requested by the Bank in order for it to make its determination of the Oil and Gas Collateral Borrowing Base, and by a certificate of the Borrowers certifying that the Borrowers have good and defensible title to the Mortgaged Properties valued and that payments are being received from purchasers of production with respect to said interests. At any time after thirty (30) days of the receipt of such information and in no event later than each May 31 and November 30 (commencing May 31, 1997) the Bank shall (i) make a determination of the present worth, using such pricing and discount factor as it deems appropriate pursuant to the Bank's then applicable energy lending and engineering policies, procedures and pricing parameters, of the future net revenue estimated by the Bank to be received by the Borrowers from production from the Mortgaged Properties so evaluated, multiplied by a percentage then determined by the Bank to be appropriate on the basis of the Bank's then applicable energy lending criteria; and (ii) report in writing to the Borrowers such sum of the evaluation by the Bank of such evaluated oil and gas properties (the "Oil and Gas Collateral Borrowing Base"). The good faith determinations of Bank in such respects shall be conclusive.
(b) The term "Mortgaged Property" shall refer only to such properties covered by the Mortgage (or a supplemental mortgage or deed of trust, duly executed, acknowledged and delivered by Sunterra to the Bank in form satisfactory to counsel for the Bank) and which properties are, at the time:
Collateral Borrowing Base