REQUEST FOR ADMISSION INTO BORROWING BASE Clause Samples
The 'Request for Admission into Borrowing Base' clause defines the process by which a borrower can propose that specific assets be included in the pool of collateral (the borrowing base) used to determine the amount they are eligible to borrow. Typically, this involves the borrower submitting a formal request to the lender, accompanied by supporting documentation that demonstrates the eligibility and value of the assets in question, such as inventory lists or accounts receivable schedules. The core function of this clause is to provide a clear and standardized method for expanding the borrowing base, thereby potentially increasing the borrower's available credit while ensuring the lender maintains control over the quality and sufficiency of collateral.
REQUEST FOR ADMISSION INTO BORROWING BASE. Borrowers shall provide Administrative Agent (with copies for each of Lenders) with a written request for a Hotel to be admitted into the Borrowing Base. Such request shall be accompanied by information regarding such Hotel, including, without limitation, the following, in each case acceptable to Administrative Agent: (i) a general description of the Hotel’s location, market, and amenities; (ii) a property description; (iii) purchase information (including any contracts of sale and closing statements); (iv) a Phase I environmental assessment and, if requested by Administrative Agent based upon issues identified in the Phase I assessment, additional environmental assessments; (v) copies of title insurance and any surveys; (vi) operating statements; (vii) engineering reports; (viii) evidence of insurance; (ix) copies of all Operating Leases, ground leases, other leases, management agreements, and franchise agreements; (x) a copy of the most-recent appraisal, if available; and (xi) such other information requested by Administrative Agent as shall be necessary in order for Administrative Agent and Required Lenders to determine whether such Hotel is a Qualified Property.
REQUEST FOR ADMISSION INTO BORROWING BASE. The Borrower shall provide the Administrative Agent (with copies for each Lender) with a written request for a Hotel to be admitted into the Borrowing Base. Such request shall be accompanied by information regarding such Hotel, including the following, in each case acceptable to Administrative Agent:
(i) a general description of the Hotel's property location, market, and amenities; (ii) a description of the Hotel and of the proposed Hotel owner; (iii) purchase information (including any contracts of sale and closing statements); (iv) a Phase I environmental assessment and, if requested by Administrative Agent based upon issues identified in the Phase I assessment, a Phase II Environmental Assessment and any other reports and assessments; (v) copies of existing title insurance, real property surveys, utility surveys and flood zone area certificates; (vi) operating statements; (vii) proof of payment of real estate taxes and assessment amounts; (viii) engineering reports; (ix) evidence of insurance; (x) copies of the Operating Lease, Management Agreement, Franchise Agreement, any ground lease, all Space Leases, all operating agreements, equipment leases and other contracts and encumbrances, as applicable; (xi) a copy of the most-recent appraisal, if available; (xii) if applicable, a receivables aging report with respect to the Hotel; (xiii) an operating and Capital Expenditure budget for the Hotel; (xiv) other documents, materials and information required in the definition of "Borrowing Base Property" herein and proof of the satisfaction of the other conditions set forth in such definition, including copies of certificates of occupancy, to the extent available or appropriate; (xv) other documents, materials and information required in order to confirm that the representations and warranties contained herein applicable to the Hotel are true and correct, to the extent available or appropriate; (xvi) information regarding the proposed Borrowing Base Subsidiary that would own the Hotel if not owned by the Borrower; (xvii) whether due to mortgage recording tax considerations or due to the manner in which title insurance premiums are computed for the state, county or municipality in which the Hotel property is located, the Borrower is requesting a Special Allocation of Revolving Credit Exposure together with information as to the basis for such request; and (xviii) such other information requested by the Administrative Agent as shall be necessary in order for the A...