Debt Service Reserve Clause Samples

Debt Service Reserve. On the date hereof, Borrower shall deposit $400,000.00 into the Debt Service Reserve Subaccount (as hereinafter defined) for the purpose of funding a reserve to provide an additional source for the payment of shortfalls in any payments required under Section 3.10(a)(i) – (vii) above at such time as when the operating income at the Property is insufficient to make such payment. Lender will transfer the deposit into a Subaccount (the “Debt Service Reserve Subaccount”) and shall disburse such amounts for such required payments as Lender deems necessary. Notwithstanding the above, at no time shall any disbursement from the Debt Service Reserve Subaccount exceed the Monthly Debt Service Payment Amount for the Payment Date in which the shortfall has occurred. Amounts on deposit in the Debt Service Reserve Subaccount shall be additional security and collateral for the Debt. Any amounts in the Debt Service Reserve Subaccount exceeding $200,000 shall be disbursed to Borrower upon the satisfaction by Borrower of the following conditions: (a) there is no Event of Default continuing, (b) an Approved Tenant has executed a Lease, under terms wholly acceptable to Lender, (c) an Approved Tenant has begun paying Rent under its Lease on or prior to December 31, 2005, (d) Borrower submits to Lender a written request for disbursement, which shall be accompanied by an estoppel agreement executed by Approved Tenant, and in form reasonably acceptable to Lender, certifying that (1) Approved Tenant has accepted and is in possession of the leased premises (2) Approved Tenant has commenced paying Rent under the Lease on or prior to December 31, 2005 and (3) there are no Rent abatements, landlord concessions, or tenant improvement work to be completed and all current obligations of the Borrower as landlord under the Lease have been completed (subsections (a)-(d) hereof collectively being known as the “Tenant Occupancy Requirements”) and (e) all amounts in the Vacant Suites Lease Reserve Subaccount (as defined in Section 3.13 hereof) have been disbursed to Borrower or applied against the Debt (subsections (a)-(e) hereof collectively referred to as the “Debt Service Release Requirements”). If the Debt Service Release Requirements are not satisfied on or prior to December 31, 2005, the Interest Rate shall be increased by seven (7) basis points (0.07%) and the Borrower shall be given an extension until March 1,2006 to complete the Debt Service Release Requirements. If, as of March 1, 200...

Debt Service Reserve. The Borrowers shall ensure that the Debt Service Reserve Account is fully funded to the required amount within one (1) year following the Conversion Date.

Debt Service Reserve. On or before July 1, 2011, a portion of the unused Term Revolving Loan Commitment (in an amount equal to three monthly payments of principal and interest due under the Term Loan) shall be restricted for use as set forth in this Section 2.22, which amount may vary from time to time due to changes in monthly principal and interest payments due on the Term Loan, but shall at no time be less than the next three monthly payments of principal and interest due on the Term Loan (the “Required Debt Service Reserve Amount”). If at any time during the term of this Agreement, the amount of the Term Revolving Loan Commitment restricted for use as the Required Debt Service Reserve Amount is less than the next three monthly payments of principal and interest due under the Term Loan, the Borrowers shall: (A) no later than five (5) Business Days after such non-compliance occurs, prepay the Term Revolving Loan in an amount equal to the amount by which the sum of the Required Debt Service Reserve Amount and all outstanding Term Revolving Loan Advances exceed the Term Revolving Loan Commitment, (B) during the period Borrower has not fulfilled (A) above, make no Distributions, including Distributions or payments otherwise permitted under Sections 5.02(b), 5.02(k) or 5.02(l), and (C) make no other payments to its Affiliates, including accounts payable or other amounts. As and when any Obligation is past due, after any applicable grace or cure periods have expired, the Agent in its sole discretion, may make one or more Advances on the Term Revolving Loan for credit to its own account to be held for the benefit of the Banks in the amount of the then past due Obligation. Notwithstanding the foregoing, Agent shall have no obligation to make any such Advance: (i) if an Event of Default has occurred and is continuing, or (ii) for any purpose other than that for which the Debt Service Reserve was established; provided, however, that if an Event of Default has occurred and is continuing, the Agent in its sole discretion may make Advances on the Term Revolving Loan for the payment of any Obligation then past due in such order and manner as is consistent with the Agent’s obligations set forth in this Agreement. Advances made on the Term Revolving Loan by the Agent under this Section 2.22, may be made without the requirement of any consent by or notice to the Borrowers. Borrowers recognize and acknowledges that its obligation to pay required Obligations are absolute and unconditional and ...

Debt Service Reserve. The Company will create a Debt Service Reserve (the “DSR”) for the benefit of the holders of these Notes. The DSR will be funded with cash flow received by the Company from OTE BM Ltd. Monies deposited in the DSR can only be used for any Payment Amount. The DSR shall not exceed an amount equal to the outstanding Payment Amounts.

Debt Service Reserve. The Company shall not permit the balance in the Debt Service Reserve Account to, at any time, be less than the amount of the Debt Service Reserve. The Company shall provide written notice to the Trustee if the balance in the Debt Service Reserve Account is less than the amount of the Debt Service Reserve.

Debt Service Reserve. The Borrower and Holdings will not permit, as of -------------------- any date on or after the Closing Date, the Liquid Assets of the Borrower as of such date (plus, if the aggregate principal amount of Indebtedness outstanding ---- under the Terra Nova Senior Notes as of such date is less than $50,000,000, the Liquid Assets of Holdings as of such date) to be less than (i) two (2) times ----- (ii) Debt Service reasonably determined by the Parent (and as set forth in the relevant Covenant Compliance Worksheet) to be required to be paid or accrued by the Parent or its Subsidiaries during the period of four consecutive fiscal quarters immediately following such date, based upon the amount of the Loans and other Indebtedness of the Parent and its Subsidiaries outstanding at the beginning of such period and assuming that the interest rates in effect at the beginning of such period, taking into account the benefit and costs of any Interest Rate Agreement with respect to the Loans, will remain in effect throughout such period; provided, however, that, as of any date of -------- ------- determination, (x) clause (ii) above shall not take into account the Debt Service of any Excluded Subsidiary, and (y) if the Parent is in compliance with Section 6.4 as of such date, clause (ii) above shall not take into account the Interest Expense of Terra Nova UK with respect to the Terra Nova Senior Notes.

Debt Service Reserve. As a condition to making the Loan, Lender has required Borrower to establish the Debt Service Reserve to ensure that adequate funds are available for, among other things, payment of any Projected Deficit.

Debt Service Reserve. Maintain and have available a debt service reserve in the Debt Service Reserve Account in an amount equal to the Debt Service Reserve Required Amount (the “Debt Service Reserve Requirement”) to be funded and maintained as set forth in the Depositary Agreement (it being understood that, after the Closing Date, if the Borrower and its Subsidiaries have insufficient amounts available to them to fund the Debt Service Reserve Account as required by the Depositary Agreement or fail to maintain a balance in the Debt Service Reserve Account that meets the Debt Service Reserve Requirement, the failure to so fund the Debt Service Reserve Account or maintain the Debt Service Reserve Requirement shall not be deemed a Default or an Event of Default hereunder).

Debt Service Reserve. 55 6.4 Terra Nova UK Interest Reserve........................................................................ 55 6.5 Statutory Capital and Surplus......................................................................... 55 ARTICLE VII NEGATIVE COVENANTS