Common use of Debt Service Coverage Ratio Covenant Clause in Contracts

Debt Service Coverage Ratio Covenant. Borrower shall not permit Borrower's "Debt Service Coverage Ratio" (as defined below) determined on the last day of each fiscal quarter hereafter for the four fiscal quarter period ending on such date to be less than 1.5 to 1.0. For the purposes hereof, (i) "Debt Service Coverage Ratio" shall mean, for any period, the ratio of "Net Cash Flow" (hereinafter defined) for such period to Debt Service for such period, (ii) "Net Cash Flow" shall mean, for any period, the sum of (A) net income (or loss) for the applicable period of measurement determined in accordance with GAAP, plus (B) depreciation deducted in the determination of net income, and (iii) "Debt Service" shall mean, for any period, the sum of, without duplication (A) scheduled payments of principal and all credit availability reductions during such period with respect to all indebtedness (including capitalized leases) of Borrower, plus (B) scheduled payments of interest during such period with respect to all indebtedness (including capitalized leases) of Borrower.

Debt Service Coverage Ratio Covenant. Borrower shall not permit Borrower's "the Debt Service Coverage Ratio" Ratio (as defined below) determined on at the last day of each fiscal quarter hereafter of Borrower for the four fiscal quarter period ending on such date to be less than 1.5 2.0 to 1.0. For the purposes hereof, (i) "Debt Service Coverage Ratio" shall mean, for any period, the ratio of "Net Cash Flow" (hereinafter defined) Flow for such period to Debt Service for such period, (ii) "Net Cash Flow" shall mean, for any period, the sum of (A) net income (or loss) for the applicable period of measurement determined in accordance with GAAPgenerally accepted accounting principles, plus (B) depreciation deducted in the determination of net income, income and (iii) "Debt Service" shall mean, for any period, the sum of, without duplication (A) scheduled payments of principal and all credit availability reductions during such period with respect to all indebtedness (including capitalized leases) of Borrower, plus (B) scheduled payments of interest during such period with respect to all indebtedness (including capitalized leases) of Borrower.