Common use of Minimum Collateral Value of Collateral Clause in Contracts

Minimum Collateral Value of Collateral. The Collateral Value shall not be less than the Minimum Collateral Value, to be tested as of the end of each fiscal quarter, based on the Valuation Statement provided by the Borrower to the Lender in accordance with Section 5.01(c)(iv). Notwithstanding the foregoing, the failure of the Collateral Value to be at least equal to the Minimum Collateral Value shall not be deemed to be a breach of this Agreement if, within thirty (30) days after receipt by the Lender of the final Valuation Statement, the Borrower either (i) prepays a portion of the Loans, or (ii) delivers additional collateral to the Lender in form and substance acceptable to the Lender (the “Additional Collateral”), in either case resulting in the Collateral Value (inclusive of the value of the Additional Collateral) being no less than the Minimum Collateral Value. In the event Additional Collateral is delivered to the Lender in connection with this paragraph (s), the Borrower shall take such action as is necessary to provide disclosure schedules with respect to the Additional Collateral and such other documents as may be required by the Lender.