Common use of Effectiveness of a Redetermined Variable Amount Clause in Contracts

Effectiveness of a Redetermined Variable Amount. Subject to Section 2.14(h), after a redetermined Variable Amount is approved or is deemed to have been approved by the Borrowing Base Required Lenders or the Required Lenders, as applicable, pursuant to Sections 2.14(c)(iii) and (iv), the Administrative Agent shall promptly thereafter notify the Borrower and the Lenders of the amount of the redetermined Variable Amount (the “Adjusted Variable Amount Notice”), and such amount shall become the new Variable Amount, effective and applicable to the Borrower, the Administrative Agent, the Issuing Banks and the Lenders: (i) in the case of a Scheduled Redetermination, (A) if the Administrative Agent shall have received the Engineering Reports required to be delivered by the Borrower pursuant to Sections 9.14(a) and (c) in a timely and complete manner, on the April 1 or October 1, as applicable, following such notice, or (B) if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant to Sections 9.14(a) and (c) in a timely and complete manner, then on the Business Day next succeeding delivery of such Adjusted Variable Amount Notice; and (ii) in the case of an Interim Redetermination, on the Business Day next succeeding delivery of such Adjusted Variable Amount Notice. Subject to Section 2.14(i), such amount shall then become the Variable Amount until the next Scheduled Redetermination Date, the next Interim Redetermination Date or the next adjustment to the Variable Amount under Section 2.14(e), (f), (g) or (h), whichever occurs first. Notwithstanding the foregoing, no Scheduled Redetermination or Interim Redetermination shall become effective until the Adjusted Variable Amount Notice related thereto is received by the Borrower.