Common use of Minimum Distribution Coverage Ratio Clause in Contracts

Minimum Distribution Coverage Ratio. The Borrowers shall not permit the Distribution Coverage Ratio to be less than 1.10:1.00; provided that, notwithstanding anything contained herein or the other Credit Documents to the contrary, in all events the Borrowers shall be permitted (i) to distribute such amounts sufficient for the REIT Guarantor to pay its entity-level taxes and (ii) distribute such other amounts as are necessary to maintain the REIT status of the REIT Guarantor and Borrowers shall not be deemed to be out of compliance with the Distribution Coverage Ratio as a result of the distributions permitted under clauses (i) and (ii) above.

Minimum Distribution Coverage Ratio. The Borrowers shall not permit the Distribution Coverage Ratio to be less than 1.10:1.00; provided that, notwithstanding anything contained herein or the other Credit Documents to the contrary, in all events the Borrowers shall be permitted (i) to distribute such amounts sufficient for the REIT Guarantor Party to pay its entity-level taxes and (ii) distribute such other amounts as are necessary to maintain the REIT status of the REIT Guarantor Party and the Borrowers shall not be deemed to be out of compliance with the Distribution Coverage Ratio as a result of the distributions permitted under clauses (i) and (ii) above.