Minimum Equity Requirement Clause Samples
The Minimum Equity Requirement clause sets a baseline amount of equity that a party, typically a borrower or an investor, must maintain in a project or entity. This clause often specifies a percentage or dollar value of equity that cannot fall below a certain threshold during the term of an agreement, and may require regular reporting or immediate corrective action if the equity level drops. Its core function is to ensure that the party maintains sufficient financial stake or solvency, thereby protecting the interests of lenders or other stakeholders and reducing the risk of default or financial instability.
Minimum Equity Requirement. From and after the date a General Partner Fundamental Change is consummated, so long as any Series A Preferred Units are thereafter outstanding, at any time and from time to time, the General Partner, in its capacity as general partner and/or as a limited partner of the Partnership, and its Affiliates shall own an aggregate of at least 33% of the equity in the Partnership through the ownership of Junior Units (the “Equity Requirement”), with the equity in the Partnership being valued based on the excess of the Gross Asset Value over Indebtedness and taking into account the Series A Preference as equity. If any Series A Preferred Unit owned by a Qualifying Series A Party is redeemed pursuant to Section 16.5, the General Partner will have the right to reduce its ownership of the equity in the Partnership to a minimum of 33% of such equity based upon the criteria set forth in the preceding sentence after such redemption, by making distributions (in cash or in-kind) to redeem a portion of its Junior Units, so long as such distributions are in compliance with Section 5.1 and Section 16.3 and the first sentence of this Section 16.8.B.
Minimum Equity Requirement. (a) Requirements for Equity to be provided by OSEG for the Total Project shall be effected in accordance with this Agreement and the Project Agreement.
(b) OSEG shall provide a minimum Equity contribution for the Total Project in the amount of thirty million dollars ($30,000,000), subject to the provisions of Section 4.3 (the “Minimum Equity Requirement”). The Members shall jointly and severally guarantee the Minimum Equity Requirement of OSEG, in accordance with the form of guarantee annexed hereto as Schedule “D”.
(c) The Minimum Equity Requirement shall be satisfied in the first instance at or prior to the Closing by the amounts described in subparagraphs (i), (ii), (iii), (iv) and (viii) of the definition of Equity and, to the extent applicable to the period prior to Closing, sub-paragraph (ix) of the definition of Equity, and then, as to any deficiency, by cash advances at or prior to Closing by each of the Members to OSEG (the amount of such deficiency being, “Initial Capital Contributed”). Each of the Members covenant with the City and the Limited Partnership, that:
(i) the Initial Capital Contributed shall remain with OSEG and not used for any purpose other than (i) cash Contributions to the Limited Partnership, or (ii) the purposes of the Total Project in accordance with the provisions of this Agreement and/or any relevant Material Agreement. Any part of the Initial Capital Contributed that is not immediately required by OSEG, the Limited Partnership or a Component Limited Partnership for the purposes of the Total Project may be invested by OSEG in Permitted Interim Investments. The income received therefrom (the “Initial Investment Income”) shall be credited against the amount payable to OSEG pursuant to Section 5.4(a)(i)(A) (respecting the Waterfall);
(ii) none of the Members shall engage in any business or incur any other obligations or liabilities or debts except in connection with the Total Project, the Soccer Team or as permitted in the definition of S.P.V. Assets and each of the Members is and shall remain a Special Purpose Vehicle; and
(iii) Contributions from the Initial Capital Contributed (except to the extent previously Contributed to the Limited Partnership or previously used for the purposes of the Total Project in accordance with the provisions of this Agreement and/or any relevant Material Agreement) shall be provided by OSEG to the Limited Partnership in accordance with the provisions of this Agreement from time to time when requi...
Minimum Equity Requirement. To further assure Broker’s performance of its obligations under this Agreement, including but not limited to its indemnification obligations under Paragraph 7, Broker shall, on or before the execution of this Agreement, establish an account(s) at SLK which shall at all times contain cash, securities, or a combination of both, having a market value of $*** or such other amount as SLK may require at a future date (the “Account”). The Account may be used by Broker to trade securities on a proprietary basis. All cash and/or securities in the Account shall be returned upon the later of 30 days after cancellation of this Agreement or the last account is transferred from SLK. This deposit does not represent an ownership interest. If SLK shall suffer any loss or incur any expense for which it is entitled to be indemnified pursuant to this Agreement, and Broker shall fail to make such indemnification within five (5) business days after being requested to do so, SLK shall deduct the amount of such claim, loss or expense from the commissions then credited to Broker pursuant to Paragraph 9. If the amount of said commissions is less than the amount of such claim, loss or expense, SLK shall have the right to withdraw from the Account cash or securities (or both) having a market value equal to the amount of such deficiency. Broker shall then be obligated to immediately deposit in the Account cash or securities sufficient to bring the Account back to a market level of at least $***. Upon the termination of this Agreement, or as soon as practical thereafter, SLK will pay and deliver to Broker the funds and securities in the Account, less any amounts which it is entitled to withdraw under the preceding Paragraph; provided, however, that SLK may retain in the Account an amount to protect it from any claim or proceeding of any type, then pending or actually threatened, until the final determination thereof is made. If within a reasonable time after the termination of this Agreement, a threatened claim or proceeding is not resolved, or a legal action or proceeding is not instituted, the amount retained with respect to such threatened claim or proceeding shall be paid or delivered to Broker.
Minimum Equity Requirement. HeritageBanc’s Adjusted Stockholders’ Equity, calculated not more than three (3) Business Days prior to the Closing Date, shall not be less than the Adjusted Stockholders’ Equity of HeritageBanc as of September 30, 2007, plus, (i) $806,000.00, and (ii) $200,000.00 per month commencing on October 1, 2007 until the Closing Date, such amount pro-rated for any partial month in which the Closing Date occurs.
Minimum Equity Requirement. Developer shall have and maintain a Construction Equity Ratio of at least five percent (5%) throughout the period between the Financial Close Date and the Project Substantial Completion Date, except to the extent:
Minimum Equity Requirement. The Waterloo Adjusted Stockholders’ Equity, calculated as of the close of business on the third (3rd) Business Day prior to the Closing Date, shall not be less than $7,873,000 (such amount representing the Waterloo Adjusted Stockholders’ Equity as of September 30, 2008 of $8,683,000 minus $810,000). Any negative difference in Waterloo Adjusted Stockholder Equity below $7,873,000 shall be referred to as the “Negative Equity Amount”; provided, however, that no negative change in the Waterloo Adjusted Stockholders’ Equity resulting from (i) payments made or to be made to ▇▇. ▇▇▇▇▇ ▇▇▇▇▇▇▇ pursuant to his employment agreement, or (ii) a sale or distribution of corporate bonds listed on Schedule 4.6(i), shall be deemed to be part of the Negative Equity Amount. In the event of a Negative Equity Amount, the Purchase Price shall be adjusted by the product of (1) the Negative Equity Amount multiplied by (2) 0.613 (the “Tax Factor”); provided, however, that any Losses treated on the books of Waterloo on an after tax adjusted basis shall not be multiplied by the Tax Factor.
Minimum Equity Requirement. If the Equity of a PAMM Investor Account falls below USD $5 (or the equivalent in another currency), the PAMM Investor Account may be removed from the PAMM Manager Account, and the remaining funds will no longer be available for trading.
Minimum Equity Requirement. The Administrative Agent shall have received evidence that the Sponsor has funded (or caused to be funded) the Minimum Equity Requirement.