Common use of Debt Service Test Clause in Contracts

Debt Service Test. 1. Total Gross Cash Receipts (See B.1 above) 2. Total Operating Expenses (See B.2 above) 3. Total Net Operating Income (See B.3 above) 4. Divide total on line 3 by 1.75 5. Divide total on line 4 by 12 6. Constant based on 10-year Treasury Obligations (yield supplied by Agent) + 2.0% and 25 year mortgage style amortization 7. Total on line 5 divided by constant on line 6, which total is multiplied by 12, equals aggregate Debt Service Coverage Amount

Debt Service Test. 1. Total Gross Cash Receipts (See B.1 B.1. above) 2. Total Operating Expenses (See B.2 above) 3. Total Net Operating Income (See B.3 above) ) 4. Divide total on line 3 by 1.75 5. Divide total on line 4 by 12 6. Constant based on 10-10 year Treasury Obligations (yield supplied by Agent) + 2.0% and 25 year mortgage style amortization amortization 7. Total on line 5 divided by constant on line 6, which total is multiplied by 12, equals aggregate Debt Service Coverage Amount