DCAS Shortfall Clause Samples
The DCAS Shortfall clause defines the procedures and responsibilities when there is a deficit in the Daily Collateral Amount Settlement (DCAS) between parties. In practice, this clause outlines how shortfalls are identified, the timeframe for notification, and the steps required for the party responsible to remedy the shortfall, such as transferring additional collateral or making a payment. Its core function is to ensure that any discrepancies in collateral settlements are promptly addressed, thereby maintaining the integrity of the collateralization process and minimizing credit risk between parties.
DCAS Shortfall. The provisions of Sections 2.9 of the Senior Loan Agreement and all the related definitions in the Senior Loan Agreement (other than the definitions of those terms that are otherwise expressly defined herein), are hereby incorporated herein by reference as if fully set forth herein as of the date hereof, subject to modifications required by Section 1.2 hereof. III. REPRESENTATIONS AND WARRANTIES Borrower hereby reaffirms and ratifies all of the representations and warranties set forth in Article III of the Senior Loan Agreement with the same force and effect as if such representations -18- and warranties were set forth herein in their entirety, subject to modifications required by Section 1.2 hereof. IV.
DCAS Shortfall. Administrative Agent, Lenders and Borrower each acknowledge that, pursuant to each of the Initial Capital Expenditure and TI Budget attached as Schedule IX to this Agreement, the parties anticipate following the investment of the Minimum Equity Requirement and the full disbursement of the Supplemental Loan Upsize (collectively, the “Additional Investments”), there will be a temporary cash flow shortfall during the buildout phase of the DCAS Lease due to the timing of the Tenant Reimbursement Funds (as reflected in months 18, 19, 20, 23 and 24 of the Budget attached hereto, the “Anticipated DCAS Shortfall”) that will require an infusion of capital in excess of the Additional Investments. Borrower hereby -68- acknowledges and agrees that it is the sole responsibility of Borrower to fund the Anticipated DCAS Shortfall.