NPA Ratio Clause Samples

The NPA Ratio clause defines the proportion of non-performing assets (NPAs) to total assets or loans within a financial agreement or institution. In practice, this clause sets a threshold or reporting requirement for the NPA Ratio, often requiring the party to maintain the ratio below a specified limit or to provide regular updates if the ratio changes. Its core function is to monitor and control credit risk by ensuring that the level of problematic or defaulted loans remains within acceptable bounds, thereby protecting the financial health of the institution or agreement.
NPA Ratio. When calculating the NPA Ratio for purposes of the Agreement, in the event that the Company or a subsidiary of the Company acquires a finance company, financial institution or a holding company of a financial institution or a branch office thereof, by way of merger or otherwise, or in the event the Company or a subsidiary of the Company shall acquire in an arms-length purchase from a third party any low-quality asset, such acquired non-performing assets or purchased low-quality assets shall be excluded from the calculation of the NPA Ratio.
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NPA Ratio. The Nonperforming Assets Ratio (the “NPA Ratio”) for the Company shall be the quotient resulting from dividing the sum of the unpaid principal balance of nonaccrual loans and other real estate by the sum of total loans and other real estate in each case as reported on the Company’s Annual Report on Form 10-K for the applicable Performance Period. When calculating the NPA Ratio for purposes of the Agreement, in the event that the Company or a subsidiary of the Company acquires a finance company, financial institution or a holding company of a financial institution or a branch office thereof, by way of merger or otherwise, or in the event the Company or a subsidiary of the Company shall acquire in an arms-length purchase from a third party any low-quality asset, such acquired non-performing assets or purchased low-quality assets shall be excluded from the calculation.
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Related to NPA Ratio

  • Total Debt to EBITDA Ratio Not permit the Total Debt to EBITDA Ratio as of the last day of any Computation Period to exceed 3.25 to 1.00.

  • Debt Ratio Permit the Debt Ratio at the last day of any fiscal quarter to be greater than the ratio set forth below opposite the fiscal quarter during which such fiscal quarter occurs: Fiscal Quarter Ending Ratio --------------------- ----- December 31, 1999 4.75 March 31, 2000 4.75 June 30, 2000 4.75 September 30, 2000 4.50 December 31, 2000 4.50 March 31, 2001 4.50 June 30, 2001 4.50 September 30, 2001 3.75 December 31, 2001 3.75 March 31, 2002 3.75 June 30, 2002 3.75 September 30, 2002 3.25 and thereafter

  • Debt to EBITDA Ratio Maintain, as of the end of each fiscal quarter, a ratio of (i) Debt, excluding Debt in respect of Hedge Agreements, as of such date to (ii) Consolidated EBITDA of the Company and its Consolidated Subsidiaries for the period of four fiscal quarters most recently ended, of not greater than 4.0 to 1.0.

  • Funded Debt to EBITDA Ratio To maintain on a consolidated basis a ratio of Funded Debt to EBITDA not exceeding 3.0:1.0.

  • Consolidated Total Leverage Ratio As of the last day of any fiscal quarter, permit the Consolidated Total Leverage Ratio to be greater than 3.00 to 1.00.