Annual Reporting Covenant Sample Clauses
An Annual Reporting Covenant is a contractual requirement obligating a party, typically a borrower or company, to provide specified financial or operational reports to another party, such as a lender or investor, on an annual basis. This clause usually details the type of reports required—such as audited financial statements or compliance certificates—and sets deadlines for their delivery each year. Its core practical function is to ensure ongoing transparency and enable the recipient to monitor the reporting party’s financial health or compliance with other agreement terms, thereby reducing information asymmetry and managing risk.
Annual Reporting Covenant. No later than January 31 of each calendar year (commencing January 31, 2019), the Borrower, on behalf of the Issuer, agrees to provide to the California Debt and Investment Advisory Commission, by any method approved by the California Debt and Investment Advisory Commission, with a copy to the Issuer, the annual report information required by section 8855(k)(1) of the California Government Code with respect to the Bonds. This covenant shall remain in effect until the later of the date (a) the Bonds are no longer outstanding or (b) the proceeds of the Bonds have been fully spent.