Indebtedness to Capitalization Sample Clauses
The 'Indebtedness to Capitalization' clause defines a financial ratio that limits the amount of debt a company can incur relative to its total capitalization, which typically includes both debt and equity. In practice, this clause sets a maximum threshold—often expressed as a percentage or ratio—of total indebtedness compared to the sum of the company's debt and equity, ensuring the company maintains a balanced capital structure. Its core function is to protect lenders or investors by preventing the company from becoming over-leveraged, thereby reducing the risk of default and promoting financial stability.
Indebtedness to Capitalization. The ratio of (a) Indebtedness of the Borrower to (b) Capitalization shall at all times be less than or equal to ..65 to 1.0.
Indebtedness to Capitalization. Permit at any time the ratio of Consolidated Funded Indebtedness to Consolidated Total Capitalization to be greater than .40 to 1.00.
Indebtedness to Capitalization. 44 Section 8 NEGATIVE COVENANTS
Indebtedness to Capitalization. The Borrower will not at any time permit the ratio of Indebtedness to Capitalization to exceed .50 to 1.00. As used in this Section 11.2, the following terms have the following meanings:
Indebtedness to Capitalization. Parent will not at any time permit the ratio of Indebtedness to Capitalization to exceed .50 to 1.00. As used in this Section 11.2, the following terms have the following meanings:
Indebtedness to Capitalization. The Debt to Capitalization Ratio ------------------------------ shall not exceed 0.65 to 1 at any time.
Indebtedness to Capitalization. (a) Debt for borrowed money $ (b) Debt evidenced by bonds, notes, etc. $
Indebtedness to Capitalization. The Company will maintain at the end of each fiscal quarter a ratio of Consolidated Total Indebtedness to Consolidated Total Capitalization of not more than 0.75 to 1.0.
Indebtedness to Capitalization. A. Consolidated Indebtedness of the Borrower and its Subsidiaries as of the Calculation Date $________
B. Consolidated Equity of the Borrower and its Subsidiaries as of the Calculation Date $________
C. Outstanding Amount of Capital Securities as of Calculation Date $________
D. Item A plus Item B plus Item C $________
E. Item A divided by Item D ________
Indebtedness to Capitalization. The ratio of (i) the aggregate amount of Consolidated Funded Indebtedness to (ii) the sum of (1) Adjusted Net Worth plus (2) Consolidated Funded Indebtedness, shall not exceed 0.65 to 1 at any time.