NET WORTH AND LIQUID NET WORTH Clause Samples

The "Net Worth and Liquid Net Worth" clause defines the financial thresholds or requirements a party must meet, typically in terms of total assets minus liabilities (net worth) and readily available assets (liquid net worth). In practice, this clause may require a party to maintain a minimum net worth or liquid net worth throughout the term of an agreement, often verified through periodic financial statements or certifications. Its core function is to ensure that a party has sufficient financial stability and resources to fulfill its obligations, thereby reducing the risk of default or non-performance.
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NET WORTH AND LIQUID NET WORTH. The Firm defines Net Worth as Assets minus Liabilities (excluding primary residence and any mortgage or other loan on the primary residence). The Firm defines Liquid Net Worth as that portion of Net Worth that is comprised of cash and cash equivalents, which includes marketable securities, treasury bills, bank deposits and any other asset readily convertible into cash within 3 business days of liquidation.
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NET WORTH AND LIQUID NET WORTH. Royal Alliance defines Net Worth as Assets minus Liabilities (excluding primary residence and any mortgage or other loan on the primary residence). Royal Alliance defines Liquid Net Worth as that portion of Net Worth that is comprised of cash and cash equivalents, which includes marketable securities, treasury bills, bank deposits and any other asset readily convertible into cash within 3 business days of liquidation.
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Related to NET WORTH AND LIQUID NET WORTH

  • Net Worth The term “net worth” means the excess of total assets over total liabilities (including personal and real property, but excluding the estimated fair market value of a person’s primary home).

  • Consolidated Net Worth The Company will not permit Consolidated Net Worth at any time to be less than US$165,000,000 plus the cumulative sum of 25% of Consolidated Net Earnings (but only if a positive number) for each fiscal quarter ending after June 30, 2004.

  • Minimum Net Worth Consolidated Net Worth will at no time be less than an amount equal to the sum of (a) $1,236,000,000 plus (b) 50% of Consolidated Net Income for each fiscal quarter of the Borrower ending after December 30, 1998 and at or prior to such time (but only if such Consolidated Net Income for such fiscal quarter is a positive amount).

  • Minimum Consolidated Net Worth Consolidated Net Worth will at no time be less than $550,000,000 plus 25% of the consolidated net income of the Borrower at the end of each fiscal quarter for each fiscal year commencing after the fiscal year ending December 31, 1994.

  • Tangible Net Worth The Seller will not permit its tangible net worth, at any time, to be less than $10,000,000.