Common use of Compliance Tests Clause in Contracts

Compliance Tests. 1. Recalculate compliance with the Borrowing Base Test (Borrowing Base divided by total Credits Outstanding) and the Asset Coverage Test (Net Assets plus Accrued Interest plus Principal Outstanding divided by Accrued Interest plus Principal Outstanding). 2. Recalculate compliance of the Remedial Paydown Calculation if the Borrowing Base Test or Asset Coverage Test fail. 3. Recalculate Credits Outstanding after Paydown (Pre-Paydown Credits Outstanding minus Actual Paydown).

Compliance Tests. 1. Recalculate compliance with for the Borrowing Base Test (Borrowing Base divided by total Total Credits Outstanding) and the Asset Coverage Test - 40 Act Test (Net Assets plus Accrued Interest plus Principal Outstanding divided by Accrued Interest plus Principal Outstanding). 2. Recalculate compliance of the Remedial Paydown Calculation if the Borrowing Base Test or and Asset Coverage Test fail. 3. Recalculate the Credits Outstanding after Paydown (Pre-Paydown Credits Credit Outstanding minus Less Actual Paydown).