Common use of FINANCIAL COVENANTS OF THE BORROWERS Clause in Contracts

FINANCIAL COVENANTS OF THE BORROWERS. During the term of the Credit, the Borrowers will maintain the following financial covenants and such computations shall be made on a consolidated basis in accordance with Generally Accepted Accounting Principles applied on a Consistent Basis: (a) the ratio of Total Liabilities to Tangible Net Worth of the Borrower at the end of any fiscal quarter shall not be more than 1 to 1. (b) the ratio of Secured Debt to Total Assets at the end of any fiscal quarter shall not be more than .40 to 1. (c) the ratio of Unencumbered Assets to Unencumbered Debt at the end of any fiscal quarter shall not be less than 1.75 to 1. (d) the ratio of EBITDA to Interest at the end of any fiscal quarter shall not be less than 1.75 to 1.