DSCR Certificate Clause Samples
A DSCR Certificate clause requires a party, typically a borrower, to provide a certificate demonstrating compliance with a specified Debt Service Coverage Ratio (DSCR). This certificate is usually prepared periodically, such as quarterly or annually, and includes calculations showing that the borrower's net operating income meets or exceeds the required ratio relative to its debt obligations. By mandating regular submission of this certificate, the clause ensures ongoing financial transparency and allows lenders to monitor the borrower's ability to service its debt, thereby mitigating the risk of default.
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DSCR Certificate. On each DSCR Certificate Date, Borrower shall deliver to, or cause to be delivered to Administrative Agent, a certificate, in the form attached hereto as Exhibit G, certifying compliance (or failure to comply, as applicable) with the Minimum DSCR Hurdle for the twelve month period ending on the applicable DSCR Test Date (the “DSCR Certificate”).
DSCR Certificate. Commencing December 31, 2012, and continuing each June 30 and December 31 (excluding, however, June 30, 2014 and June 30, 2015) of each year thereafter, Borrower shall deliver to, or cause to be delivered to Administrative Agent within thirty (30) days of the applicable DSCR Test Date, a DSCR Certificate certifying compliance (or failure to comply, as applicable) with the Minimum DSCR Hurdle for the twelve month period ending June 30 and December 31 (as applicable) of the then current year.
DSCR Certificate. Commencing December 1, 2011, and continuing each December 1 and July 1 of each year thereafter, a DSCR Certificate certifying compliance with the Minimum DSCR Hurdle for the twelve month period ending October 31 and May 31 (as applicable) of the then current year.