An Introduction to Legal Documentation Used in Bank Financings For the Oil and Gas Industry
The purpose of this paper is to provide a brief and basic introduction to the legal concepts involved in bank financings for borrowers in the oil and gas industry. No attempt will be made in this paper to provide a detailed analysis of any particular problem which might be encountered in this area of legal practice. Particular attention will, however, be directed toward analyzing the mechanics of the secured borrowing base revolving credit agreement, one of the most flexible bank financing vehicles for a borrower owning developed oil and gas properties which can be used as collateral security, and also toward describing the documents required for such a loan transaction. A pattern form list of such documents is attached to this paper as Exhibit A.
This paper will also focus on the procedures for obtaining and perfecting liens against and security interests in the types of collateral which often secure repayment of loans made to borrowers in the oil and gas industry. The importance of following the correct procedures for perfecting liens against and security interests in collateral is especially evident today in light of the recent bankruptcies which have occurred within the oil and gas industry.
SECURED BORROWING BASE REVOLVING CREDIT AGREEMENT
The secured borrowing base revolving credit agreement provides for the making of loans by a bank to a borrow
This content is available from the following sources
Already a Subscriber? Sign In
Over 60 years of scholarship at your fingertips.
Buy the Publication
The book containing this article may be available in hard copy, or the article may be available individually. Please contact the Rocky Mountain Mineral Law Foundation at email@example.com or 303-321-8100.