Maximum Liabilities to Tangible Net Worth Clause Samples
The "Maximum Liabilities to Tangible Net Worth" clause sets a limit on the amount of total liabilities a party, typically a borrower, can have in relation to its tangible net worth. In practice, this clause requires the party to maintain a specified ratio, such as not allowing total liabilities to exceed a certain multiple of its tangible net worth, which is calculated by subtracting intangible assets from total equity. This provision helps lenders manage credit risk by ensuring the borrower remains financially stable and does not become over-leveraged, thereby protecting the lender’s interests.
Maximum Liabilities to Tangible Net Worth. Permit the ratio of Borrower's consolidated total Liabilities to its consolidated Tangible Net Worth at any month end to be greater than 1.25 to 1.0.
Maximum Liabilities to Tangible Net Worth. Permit the ratio of total Liabilities to Tangible Net Worth for the Borrower and its Consolidated Subsidiaries (other than GHC) at the end of any fiscal quarter:
(i) from the Effective Date to and including December 30, 1997, to be greater than 16 to 1;
(ii) from and including December 31, 1997 to and including December 30, 1998, to be greater than 14 to 1; and
(iii) at any time thereafter, to be greater than 12 to 1.
Maximum Liabilities to Tangible Net Worth. Borrower shall not permit the ratio of Borrower's total Liabilities to its Tangible Net Worth at any quarter end to be greater than 3.0 to 1.
Maximum Liabilities to Tangible Net Worth. Permit the ratio of Borrower’s consolidated total Liabilities to its consolidated Tangible Net Worth at any month end to be greater than 1.25 to 1.0.
(A) Maximum ratio of Liabilities to Tangible Net Worth permitted under Section 9.1(a) of the Loan Agreement 1.25 to 1.0
(B) Total Liabilities: $
(C) Net Worth $
(D) All intangible items, amounts due from Affiliates, employees and shareholders and all other items which should properly be treated as intangibles in accordance with GAAP $
(E) Tangible Net Worth (item (C) minus item (D)): $
(F) Ratio of total Liabilities to Tangible Net Worth (total of item (B) above divided by item (C) above) to 1.0
Maximum Liabilities to Tangible Net Worth. Permit the ratio of the Borrowers' (i) combined total Liabilities less Subordinated Debt to (ii) combined Tangible Net Worth at the end of any fiscal quarter:
(i) from the Funding Date to and including December 31, 1997, to be greater than 8.5 to 1; LOAN AND SECURITY AGREEMENT - PAGE 62 63 (ii) from January 1, 1998, to and including June 30, 1998, to be greater than 6.5 to 1;
Maximum Liabilities to Tangible Net Worth. Permit the ratio of the Borrowers' total Liabilities (minus Subordinated Indebtedness) to their Tangible Net Worth (plus Subordinated Indebtedness), all measured on a consolidated basis at any time:
(i) from the Effective Date to and including February 28, 1997, to be greater than 4.0 to 1;
(ii) from March 1, 1997 to and including February 28, 1998, to be greater than 3.75 to 1; and
(iii) thereafter, to be greater than 3.50 to 1.
Maximum Liabilities to Tangible Net Worth. The Company shall not permit the ratio of (i) its consolidated Total Liabilities less Subordinated Debt to (ii) its consolidated Tangible Net Worth plus Subordinated Debt as of the last day of each fiscal quarter to be greater than 2.50 to 1.00.
Maximum Liabilities to Tangible Net Worth. Permit the ratio of Borrower's consolidated total Liabilities to its consolidated Tangible Net Worth at any month end to be greater than 1.5 to 1.0.
(A) Maximum ratio of Liabilities to Tangible Net Worth permitted under SECTION 9.1(a) of the Loan Agreement 1.5 to 1.0
(B) Total Liabilities: $_________
(C) Net Worth $_________
(D) All intangible items, amounts due from Affiliates, employees and shareholders and all other items which should properly be treated as intangibles in accordance with GAAP $______
(E) Tangible Net Worth (item (C) minus item (D)): $______