Additional Leverage Clause Samples
The "Additional Leverage" clause defines the circumstances under which a party may obtain or require extra collateral or security beyond the standard agreement terms. In practice, this clause might allow a lender to request more assets as security if the borrower's financial condition changes or if certain risk thresholds are exceeded. Its core function is to protect the party providing credit or exposure by ensuring they have sufficient security to cover potential losses, thereby managing risk in dynamic situations.
Additional Leverage. The Borrower must provide to the Lender invoices, sworn construction statements, and or any other information, with each progress report, to document
Additional Leverage. The Borrower must provide to the Lender invoices, sworn construction statements, and or any other information, with each progress report, to document Other Project Funds in addition to the originally included project costs.
Additional Leverage. The Fund has reserved the right to borrow money to the extent such borrowing would not result in a violation of the 1940 Act Asset Coverage (as defined under "Description of Notes--Asset Maintenance") and would not otherwise violate Section 18 of the 1940 Act or restrictions imposed by the Insurance Agreement. The Fund may borrow to the extent then permitted by the 1940 Act through the public or private issuance of debt securities and/or from lenders of all types, such as banks, savings and loan associations, insurance companies and similar financial institutions. In addition, the Fund may borrow up to 5% of its total assets for temporary purposes. To the extent permitted by the 1940 Act, the Fund may also borrow additional amounts as it redeems Notes and Preferred Shares. It is anticipated that borrowings will be effected by the Fund primarily to provide additional liquidity. However, the Fund reserves the right to use the proceeds of permitted borrowings for any other purpose, including additional investment leverage.