Borrowing Base Certificate
(Asset-Based Loan Agreement)


Summary

This template is a borrowing base certificate attached as an exhibit to an asset-based loan agreement. This template includes practical guidance and drafting notes. This certificate shows the calculation of the borrowing base used in the underlying loan facility. Therefore, the starting point in drafting the form is the definition of borrowing base in that agreement. The elements of that definition comprise each of the line items of the borrowing base certificate: eligible accounts, eligible inventory, and any other assets that are permitted to be included in the borrowing base (such as real property, intellectual property or equipment). Finally, these amounts are multiplied by the applicable advance rates, also found in the borrowing base definition, to arrive at the borrowing base. See Borrowing Base Definition (Asset-Based Loan Agreement). The borrower must complete the form and deliver it periodically to the lender (or to the agent on behalf of the lenders). Typically, the ...