This Article analyzes certain provisions in recent asset-based loan agreements that are impacted by excess availability levels. The provisions analyzed in this article address interest rate margins, cash dominion triggers, financial covenants, borrowing base reporting, and field examinations and collateral appraisals. Analysis is based on publicly filed credit agreements that were signed between October 1, 2014 and October 31, 2015.

Practical Law Finance would like to thank David Morse of Otterbourg P.C. for his assistance with this article.