Compensating Balances. Commencing on the Closing Date, Borrower’s average unrestricted aggregate deposit account balances with Alliance shall not be less than $750,000.00, as measured quarterly on a trailing basis. In the event this covenant is not met for any calendar quarter, in addition to any other remedies available to Lender, the Stated Interest Rate set forth in the Promissory Note shall increase automatically by one quarter of one percent (.25%) per annum for the quarter in which the compensatign balances in this Section 6.4 are not maintained. This covenant will be tested quarterly and to the extent that the average unrestricted aggregate deposit account balances once again exceed $750,000, the interest rate shall be re-set to the Stated Interest Rate.
Appears in 2 contracts
Sources: Loan Agreement (Iron Bridge Mortgage Fund LLC), Loan and Security Agreement (Iron Bridge Mortgage Fund LLC)