Common use of Minimum Quick Ratio Clause in Contracts

Minimum Quick Ratio. Maintain at the end of each fiscal quarter of the Borrower a ratio of (i) the sum of (w) cash on hand or on deposit in any bank or trust company which has not suspended business, (x) Cash Equivalent Investments (without duplication with (w); provided however that if the amount outstanding under the Loans shall be equal to or greater than $1,000,000, the sum of (w) and (x) shall not exceed $1,000,000 for the purposes of calculating compliance with this ratio) and (y) net outstanding amount of accounts receivable taking into account allowances for doubtful or uncollectible accounts receivable to (ii) (x) Current Liabilities less the sum of (y) the outstanding amount of the Loan (to the extent included in Current Liabilities) and (z) the amount of any deferred revenue of not less than 1.25:1.00. Each item described in clauses (i) and (ii) of this SECTION 5.