Maintain Funded Debt Ratio Level Clause Samples
The 'Maintain Funded Debt Ratio Level' clause requires a party, typically a borrower, to keep its funded debt ratio—often the ratio of total debt to earnings or assets—at or below a specified threshold. In practice, this means the borrower must regularly monitor and report its financial ratios to the lender, ensuring that additional borrowing or changes in financial condition do not cause the ratio to exceed the agreed limit. This clause serves to protect lenders by limiting the borrower's leverage, thereby reducing the risk of default and maintaining the borrower's financial stability throughout the term of the agreement.
Maintain Funded Debt Ratio Level. The Servicer shall, on a Consolidated basis, maintain as of the end of each fiscal quarter a ratio of Consolidated Funded Debt (including in the calculation thereof, all Debt incurred by a Special Purpose Subsidiary, whether or not included therein under GAAP) to the Servicer’s Consolidated Tangible Net Worth equal to or less than 3.25 to 1.00.
Maintain Funded Debt Ratio Level. On a Consolidated basis, maintain as of the end of each fiscal quarter a ratio of Consolidated Funded Debt (including in the calculation thereof, for purposes of this Section 7.5, all Debt incurred by a Special Purpose Subsidiary, whether or not included therein under GAAP) to the Company's Consolidated Tangible Net Worth equal to or less than 3.0 to 1.0.
Maintain Funded Debt Ratio Level. On a Consolidated basis, maintain as of the end of each fiscal period, as applicable, shown in the most recent financial statement delivered by the Company pursuant to Section 7.3(b) and Section 7.3(c), as applicable, a ratio of Consolidated Funded Debt as of such date minus Unrestricted Cash as of such date (including in the calculation thereof, for purposes of this Section 7.5, all Funded Debt incurred by a Special Purpose Subsidiary, whether or not included therein under GAAP) to the Company’s Consolidated Tangible Net Worth as of such date equal to or less than 5.60 to 1.0.
Maintain Funded Debt Ratio Level. On a Consolidated basis, maintain as of the end of each fiscal quarterperiod, as applicable, shown in the most recent financial statement delivered by the Company pursuant to Section 7.3(b) and Section 7.3(c), as applicable, a ratio of Consolidated Funded Debt as of such date minus Unrestricted Cash as of such date (including in the calculation thereof, for purposes of this Section 7.5, all Funded Debt incurred by a Special Purpose Subsidiary, whether or not included therein under GAAP) to the Company’s Consolidated Tangible Net Worth (i) prior to January 1, 2020 (and on January 1, 2020 and thereafter if the Company has not adopted the CECL Methodology), equal to or less than 3.25 to 1.0 and (ii) on and after January 1, 2020, so long as Company has adopted the CECL Methodology,as of such date equal to or less than 5.60 to 1.0.
Maintain Funded Debt Ratio Level. On a Consolidated basis, maintain as of the end of each fiscal quarter a ratio of Consolidated Funded Debt minus Unrestricted Cash (including in the calculation thereof, for purposes of this Section 7.5, all Funded Debt incurred by a Special Purpose Subsidiary, whether or not included therein under GAAP) to the Company’s Consolidated Tangible Net Worth (i) prior to January 1, 2020 (and on January 1, 2020 and thereafter if the Company has not adopted the CECL Methodology), equal to or less than 3.25 to 1.0 and (ii) on and after January 1, 2020, so long as Company has adopted the CECL Methodology, equal to or less than 5.60 to 1.0.