Owners’ Equity Ratio Sample Clauses
The Owners’ Equity Ratio clause defines the minimum proportion of equity that owners must maintain in relation to the total assets or liabilities of a business. Typically, this clause requires that the owners’ equity does not fall below a specified percentage, which is monitored through regular financial reporting. By setting this threshold, the clause helps ensure the financial stability of the business and protects lenders or investors by reducing the risk of over-leveraging.
Owners’ Equity Ratio. Borrower must maintain an Owners’ Equity Ratio of at least (a) 45% on the Closing Date and on December 31, 2007, (b) 47% on December 31, 2008, (c) 49% on December 31, 2009, and (d) 50% on December 31, 2010, and at all times thereafter.
Owners’ Equity Ratio. Borrower must maintain an Owner's Equity Ratio of at least 50% on December 31, 2008, and at all times thereafter.
Owners’ Equity Ratio. Borrower must maintain an Owners’ Equity Ratio of at least 42% on the last day of each fiscal year, beginning September 30, 2016, increasing by 2% at each fiscal year end until an Owner’s Equity Ratio of 50% is reached and maintained.
Owners’ Equity Ratio. Borrower will maintain an Owner’s Equity Ratio of (a) at least fifty percent (50%) as of December 31, 2011 (the “Baseline Date”), and (b) on December 31st of each year thereafter (each, a “Determination Date”), at least the percentage that is equal to the sum of (x) fifty percent (50%) plus (y) the product of (A) two percent percentage points (2%) multiplied by (B) the number of years that have elapsed from the Baseline Date to the applicable Determination Date; provided, however, that the required Owner’s Equity Ratio for any Determination Date shall not exceed seventy percent (70%).