Adequate Reserve Coverage (ARC Clause Samples
The Adequate Reserve Coverage (ARC) clause requires a party, typically a borrower or project operator, to maintain sufficient financial reserves to cover anticipated obligations or potential shortfalls. In practice, this means setting aside a specified amount of funds in a reserve account, which may be periodically reviewed and adjusted based on projected expenses or risks. The core function of this clause is to ensure financial stability and mitigate the risk of default by guaranteeing that resources are available to meet future liabilities or unexpected costs.
Adequate Reserve Coverage (ARC. The number of AM and PM reserves by day at a domicile required to reasonably ensure scheduling reliability during normal operations. ARC will be based on historical data considering, among other things, weekdays, weekends and holidays. The ARC for each day of the bid month will be posted by Crew Scheduling but is subject to change based on operational requirements. Each domicile will have a separate AM and PM ARC by calendar day. ER is counted as both AM and PM for purposes of the ARC. For purpose of the ARC only multi- day Reserves will be included in the count.