DSC COVENANT Clause Samples

A DSC Covenant is a contractual provision that requires a borrower to maintain a minimum Debt Service Coverage (DSC) ratio, ensuring that the borrower's operating income is sufficient to cover its debt obligations. In practice, this clause typically mandates regular financial reporting and may trigger default or remedial actions if the DSC ratio falls below a specified threshold. The core function of a DSC Covenant is to protect lenders by monitoring the borrower's financial health and reducing the risk of non-payment.
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DSC COVENANT. The Debt Service Coverage for each Calculation Period determined on each Calculation Date shall be not less than 1. 20:1. If such Debt Service Coverage covenant shall not be satisfied on any Calculation Date, Borrower shall prepay a sufficient amount of principal outstanding on the Loan such that if such principal reduction had been made on the first day of the Calculation Period the Debt Service Coverage covenant would have been satisfied. It shall be an Event of Default if Borrower fails to make such a prepayment not later than the first to occur of: (i) ten (10) Business Days after notice from Administrative Agent to Borrower properly requesting the payment, or (ii) if Borrower has failed to give Administrative Agent and each of the Lenders sufficient reports to enable Administrative Agent to make the necessary calculations, forty-five (45) days following the applicable Calculation Date.
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DSC COVENANT. The Debt Service Coverage for each Calculation Period shall be not less than 1.25:1 during the Initial Term of the Loan and 1.40:1 during the Extended Term. If such Debt Service Coverage covenant shall not be satisfied on any Calculation Date, Borrower shall (i) prepay a sufficient amount of principal outstanding on the Loan or (ii) provide the Lender with cash, cash equivalents or a letter of credit reasonably acceptable to Lender as additional collateral. Such additional collateral shall be in an amount which is sufficient if offset against the outstanding principal amount such that if such principal reduction had been made or additional collateral offset against the principal amount of the Loan on the first day of the Calculation Period the Debt Service Coverage covenant would have been satisfied. Any 28
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DSC COVENANT. The Debt Service Coverage for each Calculation Period determined on each Calculation Date shall be not less than 1.5:1 (measured quarterly on a rolling four-quarter basis). If such Debt Service Coverage covenant shall not be satisfied on any Calculation Date, Borrower shall prepay a sufficient amount of principal outstanding on the Loan such that if such principal reduction had been made on the first day of the Calculation Period the Debt Service Coverage covenant would have been satisfied. It shall be an Event of Default if Borrower fails to make such a prepayment not later than the first to occur of: (i) thirty (30) days after notice from Lender to Borrower properly requesting the payment, or (ii) if Borrower has failed to give Lender sufficient reports to enable Lender to make the necessary calculations, forty-five (45) days following the applicable Calculation Date.
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Related to DSC COVENANT

  • Specific Covenants The Borrower fails to perform or observe any term, covenant or agreement contained in any of Section 6.01, 6.02, 6.03, 6.05, 6.10, 6.11 or 6.12 or Article VII; or

  • Interim Covenants (a) Except with the prior written consent of Purchaser (which consent shall not be unreasonably withheld, delayed or conditioned), as otherwise contemplated or permitted by this Agreement or as required by the Bankruptcy Code or other applicable Law, during the period prior to and up to Closing, Seller shall operate the Yu-Gi-Oh! Business in compliance in all material respects with all Laws applicable to the operation of its business. From the date hereof through the Closing Date, or as otherwise required by applicable Law, Seller shall use commercially reasonable efforts to: (i) maintain the Purchased Assets in a manner consistent with past practices, reasonable wear and tear excepted and maintain the types and levels of insurance currently in effect in respect of the Purchased Assets; (ii) preserve intact the Yu-Gi-Oh! Business, to keep available the services of its current employees and agents and to maintain its relations and goodwill with its suppliers, customers, distributors and any others with whom or with which it has business relations; (iii) upon any damage, destruction or loss to any Purchased Asset, apply any insurance proceeds received with respect thereto to the prompt repair, replacement and restoration thereof to the condition of such Purchased Asset before such event or, if required, to such other (better) condition as may be required by applicable Law; (iv) promptly advise Purchaser in writing of the occurrence of any event that has had, or would reasonably be expected to have, a Material Adverse Change; and (v) consult with Purchaser on all material aspects of the Yu-Gi-Oh! Business as may be reasonably requested from time to time by Purchaser, including, but not limited to, personnel, accounting and financial functions. (b) Except as otherwise contemplated or permitted by this Agreement or by applicable Law, during the period prior to and up to Closing, Seller shall not, without the prior written consent of Purchaser: (i) enter into, terminate or amend or reject any of the Transferred Agreements, or cancel, modify or waive any material claims held in respect of the Purchased Assets or waive any material rights of value; (ii) do any act or fail to do any act that will cause a material breach or default under any of the Transferred Agreements; (iii) sell, transfer or otherwise dispose of any of the Purchased Assets; (iv) modify any of its sales practices or receivables collections practices from those in place on the date hereof, including offering any discounts, incentives or other accommodations for early payment; (v) conduct any “going out of business,” liquidation, bankruptcy, or similar sales or take any action to fashion its business as going out of business, liquidating or closing; (vi) dispose of or fail to keep in effect any material rights in, to, or for the use of any of the Intellectual Property, except for rights which expire or terminate in accordance with their terms; (vii) subject any Purchased Assets to any Liens; (viii) enter into, or negotiate any licenses or grant any party any rights or license in any of the Purchased Assets; or (ix) authorize any of the foregoing, or commit or agree to take actions, whether in writing or otherwise, to do any of the foregoing. (c) Seller take all action to properly and timely (i) exercise its option for the next season of Yu-Gi-Oh! such that the expiration dates of the Yu-Gi-Oh! Grant Agreements at Closing shall be August 31, 2019 for broadcast and home video rights in the United States, August 31, 2020 for broadcast and home video rights in the territory described therein outside of the United States, and August 31, 2019 with respect to merchandising rights and (ii) make any required payments under the Yu-Gi-Oh Grant Agreements.

  • Joint Covenants Buyer and Seller hereby covenant and agree as follows:

  • CONTINUING COVENANTS The Competitive Supplier agrees and covenants to perform each of the following obligations during the term of this ESA.

  • REPORTING COVENANTS The Borrower agrees with the Lenders, the Issuers and the Administrative Agent to each of the following, as long as any Obligation or any Revolving Credit Commitment remains outstanding and, in each case, unless the Requisite Lenders otherwise consent in writing: