Borrowing Base

The maximum loan amount a borrower may draw under a revolving credit facility, calculated as the sum of eligible collateral values multiplied by applicable advance rates. Distinct from a fixed loan: availability fluctuates as collateral values change; monthly BBC certification is standard.

Borrowing Base Certificate (BBC)

A periodic certification (typically monthly) by the borrower confirming the composition and value of the collateral pool. The BBC is the primary operational control document; lenders may field audit the BBC quarterly.

Exclusion Event

A trigger that removes an asset or LP commitment from the borrowing base (e.g., delinquency, counterparty downgrade, investor failure to fund). Common in both ABL (receivables aging out) and fund finance (LP sovereign immunity).