A later borrowing-base test changes the repayment date

Vary the delayed-receipt case above by adding a later contractual test. At the test in week 2, eligible receivables are only 10 while the drawn principal is still 20. The permitted amount is 0.80 × 10 = 8, leaving an overadvance of 12. The stipulated agreement requires repayment of that excess, or acceptance of additional eligible security, by a stated deadline. Merely recording zero room for another draw leaves this obligation unpaid.

First suppose the test and cure deadline fall after the week-2 receipt of 80 and before its operating payment of 45. Opening cash for that week is 10. Repaying 12 leaves 10 + 80 − 12 − 45 = 33 after the operating payment, with principal 8 outstanding. Week 3 adds net operating cash of 15, giving 48; repayment of 8 plus the stipulated interest 2 leaves 38. For this variant, the contract keeps the total interest payment at 2 despite the earlier partial repayment. There are no other charges. The final balance matches the preceding case, but the repayment consumes liquidity earlier.

Alternatively, the company can supply previously unpledged eligible receivables of 15 if they are actually available and the agreement admits them. Their completed acceptance raises the base to 25 and permitted debt back to 20. This cures the overadvance without a cash repayment: week-2 cash remains 45, and the original week-3 repayment of 22 leaves 38. These claims are security, not another cash receipt. Check any effect of pledging them on other financing; the illustration assumes no competing pledge or cost.

Now move the test and cash cure deadline before the receipt of 80, with eligible receivables still 10. With only 10 on hand, repayment of 12 is unavailable; keeping the reserve of 10 would require 12 of new usable cash before that deadline. The later receipt cannot satisfy the earlier requirement. The company must obtain timely funding, complete an eligible collateral cure, obtain an effective amendment or return the unresolved failure. A request still awaiting acceptance does not change the account. FIN.12 supplies the actual cure rule and FIN.10 the terms of any replacement funding.