Minimum Asset Coverage Ratio Clause Samples
The Minimum Asset Coverage Ratio clause requires a borrower or company to maintain a specified ratio of assets to debt, ensuring that the value of its assets remains sufficiently high relative to its outstanding obligations. In practice, this means the company must regularly calculate and report its asset coverage, and if the ratio falls below the agreed threshold, it may trigger a default or require corrective action. This clause serves to protect lenders or investors by reducing the risk that the borrower's assets become insufficient to cover its debts, thereby safeguarding their interests.
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Minimum Asset Coverage Ratio permit the Asset Coverage Ratio (measured monthly beginning at the end of the first full month after the Closing Date) to be less than (i) for the period beginning up to and including August 31, 2014, 0.90 to 1.00 at all times, (ii) for the period beginning up to and including June 30, 2015, 1.00 to 1.00 at all times, and (iii) thereafter, 1.10 to 1.00 at all times.”
Minimum Asset Coverage Ratio. The Borrower shall maintain at all times an Asset Coverage Ratio of at least 2.25:1.0.
Minimum Asset Coverage Ratio. Permit the Asset Coverage Ratio to be less than 1.10 to 1.00 at any time.
Minimum Asset Coverage Ratio. Permit the Asset Coverage Ratio on the last day of each Test Period ending after the Third Amendment Effective Date, to be less than 150%.
Minimum Asset Coverage Ratio. The Borrower shall not permit the Asset Coverage Ratio to be less than 150% as of the last day of any fiscal quarter, beginning with the fiscal quarter ending September 30, 2021.
Minimum Asset Coverage Ratio. (Section 8.18 - minimum of 3.00 to 1.0): to
Minimum Asset Coverage Ratio. Beginning November 30, 2022, permit the Asset Coverage Ratio as at the close of business on the last Business Day of any month to be less than [***].
Minimum Asset Coverage Ratio. Borrower shall maintain an Asset Coverage Ratio, as measured as of the last day of each Fiscal Quarter of Borrower, of at least 1.0 to 1.0.
Minimum Asset Coverage Ratio. The Company will not permit the Asset Coverage Ratio, as of the last day of each of its fiscal quarters, to be less than 1.50 to 1.00.
Minimum Asset Coverage Ratio. Borrower shall maintain at all times a ratio of (i) unrestricted cash in its accounts at Bank plus Eligible Accounts plus the Guaranteed Amount to (ii) all outstanding Obligations owing to Bank (the “Asset Coverage Ratio”) of at least 1.40 : 1.00.