Common use of Calculation of Leverage Ratio Clause in Contracts

Calculation of Leverage Ratio. The Agent shall calculate the Leverage Ratio Percentage on the first Drawdown Date and on each Dividend Declaration Date thereafter based on the information contained in the latest Compliance Certificate (and evidenced by an accompanying set of market valuations of all the Fleet Vessels prepared in accordance with Clause 15.4 and the latest Applicable Accounts) for the purposes of calculating the Margin and shall advise the Borrower and the Lenders in writing, within 10 Business Days of each Dividend Declaration Date, of the Margin which will apply for the next Interest Period Provided that in respect of each Dividend Declaration Date other than the first Dividend Declaration Date, the Agent shall only be obliged to advise the Borrowers and the Lenders of the Margin which will apply for the next Interest Period if that Margin will be different to the Margin which applies immediately prior to the relevant Dividend Declaration Date. For the purposes of calculating the Leverage Ratio pursuant to this Clause 5.14, the Market Value of the Ships shall be determined no more than 15 days prior to the relevant Dividend Declaration Date.