Excess Availability Covenant Sample Clauses
An Excess Availability Covenant is a contractual provision that requires a borrower to maintain a minimum level of unused borrowing capacity under a revolving credit facility. This covenant typically measures the difference between the total borrowing base and the amount currently drawn, ensuring that the borrower always has a financial cushion available. For example, a lender may require that excess availability never falls below a certain percentage of the borrowing base, triggering additional reporting or restrictions if breached. The core function of this clause is to protect the lender by ensuring the borrower maintains sufficient liquidity and reducing the risk of default.
Excess Availability Covenant. The Loan Parties shall maintain Excess Availability at all times of not less than the greater of (a) ten percent (10%) of the Loan Cap or (b) $5,000,000.00.
Excess Availability Covenant. Permit Excess Availability at any time to be less than the greater of (a)amount equal to ten percent (10%) of the Loan Cap or (b) $1,000,000; provided, that, if at any time Excess Availability is less than $2,500,000, then $1,000,000 shall be increased to $1,500,000 for purposes of this Section 7.15(b). ARTICLE VIII
Excess Availability Covenant. The following Section 9.18A hereby is added to the Loan Agreement:
Excess Availability Covenant. Borrower shall not permit Excess Availability at any time to be less than $600,000.
H. By deleting the reference to "June 1, 2009" in Section 12.1(a) of the Loan Agreement and by substituting in lieu thereof "June 10, 2009".
Excess Availability Covenant. Permit Excess Availability at any time to be less than the amount equal to ten percent (10%) of the Loan Cap.