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w w w . C A N A D I A N L a w y e r m a g . c o m M A R C H 2 0 1 8 27 START END CONSIDERATIONS: DRAFTING THE DEFINITION OF ELIGIBLE INVENTORY Resources: • Practice Note, Borrowing Base: Overview • Standard Clause, ABL Loan Agreement: Eligible Inventory Defi nition • Checklist, Asset-Based Lending: Eligible Inventory Checklist 3 1 CONSIDERATIONS: THE APPLICABLE MARGIN AND FINANCIAL COVENANTS Resources: • Practice Note, Borrowing Base: Impact of Excess Availability • Standard Clause, ABL Loan Agreement: Applicable Margin Defi nition • Standard Clause, ABL Loan Agreement: Financial Covenants 5 CONSIDERATIONS: DRAFTING THE DEFINITION OF ELIGIBLE RECEIVABLES Resources: • Practice Note, Borrowing Base: Overview • Standard Clause, ABL Loan Agreement: Eligible Receivables Defi nition • Checklist, Asset-Based Lending: Eligible Receivables Checklist 2 CONSIDERATIONS: DRAFTING THE DEFINITION OF BORROWING BASE Resources: • Practice Note, Borrowing Base: Overview • Practice Note, Borrowing Base: Impact of Excess Availability • Standard Document, Borrowing Base Certifi cate • Standard Clause, ABL Loan Agreement: Borrowing Base Defi nitions 4 PREPARING THE LOAN AGREEMENT Resources: • Practice Note, Asset-Based Lending: Overview • Practice Note, Borrowing Base: Overview • Standard Document, Loan Agreement (Bilateral Loan) • Standard Clause, ABL Loan Agreement: The Credits • Standard Clause, ABL Loan Agreement: Mandatory Borrowing Base Prepayments • Standard Clause, ABL Loan Agreement: Conditions Precedent to All Advances • Standard Clause, ABL Loan Agreement: Reporting Requirements • Standard Clause, ABL Loan Agreement: Positive Covenants (Retail Borrower) 6 REVIEW TERM SHEET Resources: • Practice Note, Term Sheets: Overview • Standard Document, Term Sheet: ABL Credit Facility ABOUT PRACTICAL LAW CANADA Practical Law Canada helps lawyers increase effi ciency, serve clients and business partners more effectively, tackle unfamiliar topics, and keep up with legal developments. Our expert team of lawyer-editors creates and maintains up-to-date, practical resources that refl ect the latest law and practice. To get full access to the resources listed above, request a free trial at www.practicallaw.ca. Negotiate asset-based loans easily Practical Law Canada supports you at each step